The lowdown on comprehensive car insurance in Singapore
When it comes to buying car insurance in Singapore, you will quickly find that there are different types of plans and an array of insurers to choose from. As such, being aware of the main features of each type of motor insurance plan can go a long way in ensuring you’re obtaining the best car insurance coverage for your needs. Chief among the types of plans available in Singapore is comprehensive car insurance which – as its name implies – is the highest level of protection you can get for your vehicle. Today, we give you the lowdown on what you need to know about comprehensive car insurance coverage in the Lion City.
Why do I need car insurance in Singapore?
As is the case in virtually all other countries, all drivers in Singapore are legally required to secure at least the most basic form of motor insurance. According to the Motor Vehicle (Third-Party Risks and Compensation) Act, drivers must have coverage that, at the very least, protects them against bodily injury or death to other parties – i.e. passengers, pedestrians, and drivers of other vehicles.
Driving without a valid car insurance policy in Singapore is punishable by law. We actually talked about this in one of our previous blog posts; if found without valid motor coverage, drivers in the city-state will be liable to a fine not exceeding SGD 1,000, up to three months imprisonment, or both.
Beyond it being a legal necessity, car insurance protects the driver against financial losses and even bankruptcy should they get into an accident. One thing to stress here, however, is that motor insurance can differ significantly in terms of the level of protection they offer.
What is comprehensive car insurance? What does it cover?
Comprehensive car insurance is the most superior level of motor coverage in Singapore. This type of policy is a step above both third party only (TPO) and third party fire & theft (TPFT) car insurance plans because of one very important feature: damages and losses to your vehicle are also covered. This is a highly desired benefit, especially when considering that more basic policies do not cover the driver’s own vehicle.
Comprehensive plans can also feature a number of optional extras, but these options will differ depending on the insurer you’re securing coverage from. For example, some comprehensive motor policies will also feature NCD protection, vehicle towing benefits, personal accident coverage, and more.
What are the other types of motor insurance in Singapore?
Third party only (TPO) and third party fire & theft (TPFT) plans are also available for purchase in Singapore. Compared to comprehensive car insurance, TPO and TPFT plans are not as extensive in terms of the coverage benefits they offer, but can be adequate for certain drivers (e.g. those with low value vehicles). More specifically, these policies feature the following benefits:
- Third party only car insurance – Covers the driver against third party bodily injury, death, and property damage. Passengers inside the driver’s own vehicle are also considered third parties, so will be covered by even the most basic car insurance plans in Singapore.
- Third party fire & theft car insurance insurance – Also covers third parties, but with several important additions: theft of your car, damages to your vehicle from attempted theft, and losses caused by fire are also covered.
One thing that’s definitely worth paying attention to when buying car insurance is the plan’s coverage limits. If you’re buying the cheapest policy on the market, it likely won’t feature limits high enough to reimburse all costs incurred when you have an accident. This can lead to sky high out-of-pocket costs, especially if the accident were to involve costly damage to high value cars (e.g. Ferraris).
Is comprehensive car insurance the right option for me?
At the end of the day, it’s entirely up to you which type of motor insurance you choose to buy. Each driver’s circumstances and budget will be different, so it is important to review your needs so that you can better ascertain the type of car insurance you require. Despite its higher price tag, our experts typically recommend comprehensive car insurance to drivers with high value vehicles, or cars that are expensive to repair.
What else should I be aware of when buying motor insurance in Singapore?
In addition to having a good idea of what each type of car insurance covers, other important elements to pay attention to when comparing plans include:
- Customer support
- Insurer reputation
- Claims timeframes
- NCD transferability
- And many more
For further tips and insights on comparing car insurance in Singapore, check out our blog post on the topic here.
Contact Kwiksure Singapore for a free comprehensive car insurance quote today
The task of comparing and buying motor insurance can be made easier if you do your homework beforehand, but much, much easier if you get in touch with a reputed car insurance broker, like Kwiksure Singapore. Contact us today for answers to all your questions, and to get a free quote and plan comparison.