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Types of car insurance in Singapore: Which one should you choose?

There are hundreds, if not thousands of reasons why car insurance is a must for any and every driver in the world. Not only is it a legal requirement in most countries (including Singapore), it also gives drivers much-needed protection against the bank-breakingly high costs of personal liability should they become involved in an accident. Finding the right protection, however, can be a difficult task, which is why it’s essential that every driver does their own homework on the different types of car insurance available before making their purchase.

To that end, our expert team have provided a rundown on all three types of car insurance drivers can secure in Singapore, as well as which types of people and circumstances they might be best suited for.

Motor insurance law in Singapore

Most of you are probably aware that it is against the law to drive a motor vehicle on the road without a valid car insurance plan in Singapore. In accordance with the Motor Vehicles (Third-Party Risks and Compensation) Act, the minimum requirement is that motor insurance policies in the country must provide coverage for bodily injury or death to other parties.

If a driver is found without valid insurance, they will be liable to a fine not exceeding SGD 1,000, up to 3 months imprisonment, or both. A driver convicted of an offence under the Act will in most circumstances be disqualified from holding or obtaining a driver’s license for one year. As such, it’s important to carry your Certificate of Insurance in your car at all times.

Types of car insurance in Singapore

Motor insurance companies in Singapore offer three main types of car insurance policies. These are:

Third party only insurance

Third party only (TPO) car insurance, as the name states, covers other people (including passengers) in the event that the insured gets into a car accident.

This is the most basic type of car insurance in Singapore, as it’s designed to provide the minimum coverage required under Singapore law. That said, most TPO policies in Singapore will also cover damage to property belonging to other parties, such as cars, street lighting, etc., but will not cover the insured’s own vehicle.

In most cases, you will find that TPO is usually the cheapest type of car insurance, so it can be the best choice if you: have an older car, a vehicle that is cheap to repair, can easily afford to pay for vehicle repairs yourself, or have a low budget. The relatively low price, however, speaks for itself. As this type of plan only covers other parties, it does leave some coverage gaps that more comprehensive plans insure.

Third party fire & theft insurance

Third party fire & theft (TPFT) car insurance is considered one step up from TPO policies, as they cover the same things as TPO insurance but with a few key additions:

  • Theft of your vehicle
  • Damages from attempted theft
  • Fire damage (arson, for example)

Those looking for additional coverage without paying too high a premium may benefit most from a TPFT policy, but should be aware of what they won’t cover. As with TPO policies, TPFT policies do not cover damages to the insured’s own vehicle/property in the event of an accident. For true peace of mind, Kwiksure Singapore would recommend securing comprehensive car insurance.

Comprehensive insurance

Offering more extensive cover than TPO and TPFT policies, Comprehensive insurance is the highest level of motor coverage drivers can secure in Singapore. This type of car insurance covers everything that TPFT policies cover (including fire and theft), but with a very important addition: it covers damages and losses to the driver’s own vehicle. Comprehensive car insurance can additionally include a whole host of extra benefits like vehicle towing, windscreen damage, and personal accident cover.

Due to its vast range of coverage benefits, comprehensive plans tend to be the most expensive type of car insurance. Despite its higher price tag, it can be the best choice for you especially if you have an expensive vehicle, and/or one that is expensive to repair. These plans can also save you a lot of money in the long run should a serious accident happen.

Which type of car insurance is the best for me?

This can be a difficult question to answer, as it will depend on your specific needs and budget requirements. It is therefore important to review all your options to determine which type of car insurance coverage is right for you. To help, we’ve included our benefits comparison table below:

types of car insurance table

Final advice: Get in touch with Kwiksure Singapore

Beyond level of coverage, there are many factors that go into determining your car insurance premium, including the make and age of your vehicle, claims history, etc. To find the best type of car insurance for your needs at the best price, it therefore pays to get advice from an experienced motor insurance expert like Kwiksure Singapore. Contact us today for impartial advice, or click here to get a free quote today.