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What exactly is third party risk motor insurance?

Having liability insurance for vehicle owners is one of the most important duties and obligations related to owning and driving a car. In short, this type of insurance protects against claims by third parties for damages caused by the policyholder. Essentially, in every country (including Singapore), third party risk motor insurance is an obligatory policy.

What is third party risk motor insurance?

In case of an accident that resulted from the fault of the driver, as a result of which other people were killed or suffered more or less severe injuries, or damage to property (e.g. cars) belonging to other people, motor liability insurance will pay compensation to those people. What’s important to mention here is that no matter who drove the car (e.g. the owner, another person, or even a thief), the insurer will pay appropriate compensation.

Third party liability insurance covers damages caused, of course, during the movement of the vehicle, but also when getting on and off it, during loading and unloading of the vehicle, and also during parking and stopping maneuvers.

Inclusions and exclusions to third party motor insurance

To summarize, third party risk insurance only covers costs related to:

  • Death or bodily injury to third parties (including passengers)
  • Damage to property belonging to third parties
  • Accidents occurring on the road and on private property

A level up from basic third party insurance is a policy called third party fire and theft, which also covers your vehicle should it get stolen or damaged by fire or attempted theft.

Since third party risk motor insurance is the most basic type of protection, it comes with many policy exclusions:

  • Damages and losses resulting from fire and theft
  • Damage to your car and property
  • Personal injury or death
  • Roadside assistance
  • Broken windscreen coverage for damages caused by debris or negligence
  • No Claims Discount (NCD) protection
  • Personal accident and medical expenses cover
  • Vehicle towing

If you’re thinking of also protecting your car and your No Claims Discount for example, we’d suggest obtaining a comprehensive motor insurance plan.

You can also read our previous article, where we listed 5 things you should know about Singapore auto insurance.

The cheapest motor insurance?

Third party risk motor insurance is, indeed, the cheapest option in terms of premiums. However, as can be gathered from the above, it excludes coverage for repairs of your own vehicle, should you be found responsible for any accident or collision. Costs of repair, or medical bills in case something happens to you, are simply not covered and can stack up very quickly.

Compare motor insurance quotes in Singapore

Kwiksure Singapore partners with the very best motor insurers in the Lion City including IMSG Insurance, AXA Singapore, Liberty Insurance, and more.

One way you can compare third party risk motor insurance quotes is to use our online quotation tool, or simply contact us, and our friendly and experienced insurance advisors will prepare a customized free quote for you, and help you compare your motor insurance plan options – from third party only to the most comprehensive ones!