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Your Ultimate Guide to Motor Insurance in Singapore: What You Need To Know
- February 24, 2025
Motor insurance may not be the most exciting topic for casual conversations, but it is a crucial aspect of vehicle ownership. Understanding the right coverage options can protect you from unexpected costs and ensure peace of mind on the road.
Singapore is generally recognized for having a relatively low rate of road traffic accidents compared to many other countries. The number of traffic accidents resulting in injuries increased slightly from 6,779 cases in 2022 to 6,944 cases in 2023 but remained below the pre-COVID level of 7,705 cases in 2019. 2024 will end with a lower number of accidents from the past years but it still accounts to a daily average of over 200 cases, excluding cases without injuries!
Motor insurance is essential for vehicle owners, offering financial protection against accidents, theft, and other risks. This guide outlines the types of coverage available, factors influencing premiums, and tips for selecting the right policy.
3 Main Motor Insurance Plans in Singapore
1. Comprehensive Motor Insurance Plan
The most extensive option, comprehensive insurance covers third-party liabilities and damages to the insured's vehicle from various incidents, including accidents, theft, fire, and natural disasters. It may also offer additional benefits like personal accident coverage.
2. Third-Party, Fire & Theft (TPFT) Plan
This policy includes third-party coverage and adds protection against fire damage or theft of the insured vehicle.
3. Third-Party Motor Insurance Plan
This is the minimum legal requirement. It covers damages to third parties and their property caused by the insured driver but does not cover damages to the insured's own vehicle.
Factors Affecting Motor Insurance Premiums
A. Vehicle Type
The make, model, and age of your vehicle significantly affect your premiums. Luxury cars or high-performance models often incur higher premiums due to the increased risk and higher repair costs. Additionally, vehicles with advanced safety features or those that are more prone to theft can also impact your rate.
B. Driver Profile
Your age, driving experience, and claims history all influence your premiums. Younger or inexperienced drivers tend to face higher premiums because they are considered higher risk. If you have a history of multiple claims, insurers may increase your rates. On the other hand, safe drivers can enjoy lower premiums. In addition, married individuals may benefit from lower rates as they are often seen as more responsible.
C. Usage
The purpose for which you use your vehicle—personal versus commercial use—can affect your premium. Commercial vehicles typically have higher premiums because they are driven more frequently and may be at greater risk.
D. No Claim Discount (NCD)
Many insurers reward safe drivers by offering discounts on premiums for each year you go without making a claim. This No-Claim Discount (NCD) increases over time, helping you save money on premiums if you maintain a claim-free record.
E. Safe Driver Discount
In addition to the NCD, some insurers provide an extra 5% Safe Driver Discount if you do not have demerit points. However, this discount is only available with certain insurers, so it’s worth comparing options.
F. Excess
Excess refers to the amount shown in your insurance policy that you are required to pay for every accident before the insurer covers the remaining costs. Opting for a higher excess generally results in a lower premium, but it also means you'll have to cover a larger out-of-pocket amount if you make a claim.
G. Vehicle Accessories
If you have non-factory modifications, such as a custom spoiler, sunroof, or enhanced sound system, be aware that your insurance premium may increase to cover these accessories. Make sure you discuss these with your insurer to ensure they're properly covered.
H. Driver’s Profile and Experience
Some insurers offer additional discounts or higher premiums based on your profile. Drivers with more years of experience or a clean driving record will likely qualify for lower rates. Conversely, young or inexperienced drivers, or those with prior claims, may face higher premiums.
I. Type of Workshop
Choosing a preferred workshop or panel workshop can influence your premium rates. If your insurer offers you a list of approved workshops, using one of those can often keep your premiums lower.
J. Optional Extensions
Certain insurers offer optional extensions such as coverage for named drivers (individuals explicitly listed in the policy) or for driving in Thailand or other neighboring countries. Make sure to check with your insurer if you need these options to ensure full coverage for your specific driving needs.
Tips for Selecting the Right Motor Insurance Policy
1. Understand Policy Exclusions
It is crucial to read the policy document carefully to know what is and isn’t covered. For example, some policies might not cover damages caused by certain natural disasters, while others may have specific exclusions for high-risk areas.
2. Choose the Right Excess
Consider your ability to pay the excess before deciding on a policy. A higher excess can significantly lower your premium, but it will require you to pay more in the event of a claim.
3. Read Customer Reviews
Before committing to an insurer, read reviews and customer feedback, especially concerning claims handling. A company with strong customer service and a quick claims process can save you time and money in the long run.
Get the Best Motor Insurance with Insurance Guru
At Insurance Guru, we are committed to helping you find the right motor insurance policy tailored to your needs. Whether you’re looking for comprehensive coverage, third-party protection, or a policy with optional extensions, our team of experts is here to guide you every step of the way.
With our in-depth knowledge of the Singapore market and a wide range of insurers to choose from, we’ll ensure you get the best premium at the best price, while offering personalized recommendations based on your unique driving profile. Plus, we make understanding factors like No Claim Discounts, excess options, and additional coverage easy!
Don’t wait until it's too late—Contact Insurance Guru today for a free consultation and get a quote that works for you. Let us help you drive with confidence!
Frequently Asked Questions (FAQs) About Motor Insurance in Singapore
1. Does motor insurance cover repairs caused by flash floods due to heavy rainfall?
Yes, our comprehensive motor insurance covers natural disasters, including flood damage.
Please do reach out to us for further information.
2. Is NCD transferrable?
No, your No-Claim Discount (NCD) is tied to the individual policyholder and cannot be transferred to another person. However, it may be portable between insurers when you switch.
3. Does motor insurance cover driving to Malaysia?
Yes, our comprehensive policies cover driving in Peninsular Malaysia, but ensure your policy explicitly includes cross-border coverage and any specific conditions.
Please do reach out to us for further information.
4. Is the towing service covered?
Yes, our motor insurance policies include towing services as part of their roadside assistance.
Please do reach out to us for further information.
5. What are named drivers?
Named drivers are individuals explicitly listed in your policy who are authorized to drive the insured vehicle. Coverage may be limited or void if an unnamed driver is involved in an accident.
6. Is EV motor insurance cheaper?
Electric Vehicle (EV) insurance can be more expensive due to higher repair costs and specialized parts. However, premiums vary depending on the insurer and coverage.
Yours,
The author of this article, Insurance Guru, is a trusted insurance platform dedicated to simplifying and customizing insurance solutions for families in Singapore. By providing transparent comparisons across major insurers, InsuranceGuru empowers consumers to choose only the coverage they need, saving money without compromising on protection. With a commitment to making insurance stress-free and accessible, Insurance Guru helps individuals secure the best car and life insurance plans efficiently. If you have any questions or need any further assistance, please feel free to email us at admin@insuranceguru.com.sg.
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