We know, we know, cars are expensive in Singapore.
Owning a car means taking out a car loan, paying parking fees, and… getting car insurance.
Car insurance is compulsory in Singapore, typically costing between $800 and $2,000.
However, the good news is that several car insurance providers offer comprehensive coverage without having you break the bank.
Car insurance protects you in case of accidents, and for new drivers, it gives you peace of mind as you gain experience. If you’re looking for more affordable coverage, here are some of the cheapest options in Singapore.
TL;DR: Cheapest Car Insurance in Singapore (May 2024)
For simplicity, we will use Toyota Vios 1.5 (A), registered in 2023 and manufactured in 2022, to compare prices across common providers over one year.
This is the driver’s profile:
- 30 year old
- 0% No Claim Discount (NCD)
- Driving experience: 4 years
- Non-off-peak car
If you’d like the cheapest car insurance on this list, it’s BudgetDirect Third-Party Only car insurance.
But note that it does not cover damage to your car and the main driver.
On the other hand, if you’d enjoy a slightly comprehensive yet affordable insurance, you may be better off with Singlife Motor Lite, Income DrivoTM Classic, or FWD Classic Plan.
Click here to jump:
- What to look for in car insurance?
- Cheapest Third-Party Only Car Insurance
- Cheapest Third-Party Fire And Theft Car Insurance
- Most Affordable Comprehensive Car Insurance
- FAQs about car insurance in Singapore
What Should You Look For in Car Insurance?
For the uninitiated, there are three types of car insurance in the market. Here’s a quick summary of what they cover.
Third-Party Only (TPO) Car Insurance
Third-party only (or liability sometimes) car insurance protects you if you’re at fault in an accident that damages another vehicle or property. If your objective is to avoid hefty payouts to other parties in the event of an accident you cause, this is the car insurance you should be getting.
If you are in an accident, TPO covers the other vehicle, its driver, and property for any damage. It does not cover your own vehicle damages or medical bills.
Third-Party Fire and Theft (TPFT) Car Insurance
In addition to what’s covered on TPO, this adds coverage for damages to your vehicle from fire, theft, or attempted theft. It does not cover liability from accidents or your own medical expenses.
Comprehensive Coverage
As the name goes, this type of car insurance provides the most extensive coverage and is generally the most expensive among the three options.
It covers car accidents and liabilities, fire and theft, and personal accident medical expenses.
The more risks and expenses you want to be covered, the higher your premiums will be. As a new driver, starting with an inexpensive plan and minimal coverage is a prudent way to keep costs low until you gain more experience.
What if the insurance provider only provides comprehensive plans but in different tiers?
In my opinion, this is a good thing as long as there is no drastic difference in prices.
Take, for instance, FWD, Income, Singlife, and Tiq car insurance plans that provide coverage for accidents, fire, and theft, but the difference lies in the coverage amount based on the tiers of the plans.
How Much Does Car Insurance Cost in Singapore?
Car insurance premiums in Singapore typically range from $800 to $2,000 per year, depending on the coverage level and vehicle type. The exact price will depend on factors like:
- Your vehicle make, model and year
- Your age, driving experience, and claims history
- Any discounts you may be eligible for
- The voluntary excess amount you choose
Now, let’s take a look at the prices!
Cheapest Car Insurance in Singapore: Third-Party Only
| Insurer | Premium | Cover for your car damage or write-off |
|---|---|---|
| BudgetDirect Third-Party Only | $1,122.36 | Not covered |
| Tiq Third-Party Only | $1,242.83 | Not covered |
| DirectAsia Third-Party Only | $1,329.75 | Not covered |
| Singlife Motor Lite | $1,469.01 (U.P. $1,907.82) | Covered |
| Income DrivoTM Classic | $1,571.78 | Up to market value at time of loss or damage |
| FWD Classic Plan | $1,636.29 | Up to market value at time of loss or damage |
Note: TPO car insurance ONLY covers damages to another vehicle, its driver or property, assuming you’re at fault.
Cheapest Car Insurance in Singapore: Third-Party Fire And Theft
| Insurer | Premium | Remarks |
|---|---|---|
| BudgetDirect Third-Party Fire and Theft | $1,367.22 | Excess: Unnamed Driver < age 25 or less than 2 years driving license: $3,600 Named Driver < age 25: $600 Named Driver with less than 2 years driving license: $500 |
| DirectAsia Third-Party Fire and Theft | $1,544.19 | N.A. |
| Tiq Third-Party, Fire and Theft | $1,600.23 | Not covered |
| Singlife Motor Standard | $1,728.25 (U.P. $2,244.48) | Covers accident, fire & theft: Up to market value at time of loss or damage |
| Income DrivoTM Advantage | $1,886.13 | Covers accident, fire & theft: Up to market value at time of loss or damage |
| FWD Executive Plan | $1,934.05 | Covers accident, fire & theft: Up to market value at time of loss or damage |
Note: In addition to coverage for damages to another vehicle, its driver or property, TPFT car insurance covers damages to your vehicle from fire, theft, or attempted theft only. It does not cover liability from accidents or your own medical expenses.
Cheapest Car Insurance in Singapore: Comprehensive
| Insurer | Premium | Remarks |
|---|---|---|
| Tiq Comprehensive | $1,705.57 | Excess Main driver: Up to $2,500 Elderly, Young & Inexperienced: $2,000 Unnamed driver: $500 Personal Accident: Up to $50,000 |
| DirectAsia Third-Party Comprehensive | $1,752.99 | Covers Singapore, West Malaysia and Southern Thailand (this is the part of Thailand within 80km of the border between Thailand and Malaysia) Optional 1) Covers cost of replacing car 2) Personal accident up to $500,000 |
| BudgetDirect Comprehensive | $1,770.13 | Excess Unnamed Driver < age 25 or less than 2 years driving license: $3,600 Named Driver < age 25: $600 Named Driver with less than 2 years driving license: $500 |
| FWD Prestige Plan | $2,032.03 | Taxi reimbursement Unlimited Excess Any persons other than policyholder < age 27 and/or held driving license for 2 years or less: $2,500 unless add optional cover to waive Personal Accident 1) Authorised driver: Up to $75,000 2) Each passenger: Up to $25,000 3) Guardian angel benefit for surviving children if both parents die or become permanently disabled: Up to $500,000 |
| Income DrivoTM Premium | $2,194.75 | Excess Unnamed driver is < age 27 or has less than one year’s driving experience: $2,500 Unnamed driver is 27 years old and above with one or more year’s driving experience: $500 Personal Accident: Up to $50,000 |
| AIG Car Insurance Complete | $2,396.41 | Excess 1) Covered for household members only 2) Excess Waiver of up to $1,000 with an in-car camera footage |
FAQs About Car Insurance in Singapore
How to Get the Cheapest Car Insurance Premiums in Singapore
As a new car owner, focus on a few key factors to get the coverage you need at a price you can afford. At the minimum, you should get third-party liability to cover damages to other vehicles. And if your car is new, get coverage for its current value to avoid being underinsured.
If you’ve been driving for a while, you probably know the basics of finding car insurance. But you may miss out on some factors.
Bundle your policy
Getting coverage for multiple vehicles or bundling with other policies like home insurance can qualify you for a multi-policy discount of up to 15-20% off your premiums. Some insurers like NTUC Income and AIG offer generous bundle deals for families and multiple car owners.
Increase your excess or deductibles
If you can afford to pay more out of pocket in the event of a claim, increase your policy excess. The higher your excess, the lower your premiums. An excess of $1,000 to $2,000 can reduce your premiums by up to 30%. Just make sure you can afford the excess amount in case you need to claim.
Improve your credit score
In Singapore, your credit score can affect your car insurance premiums. Insurers view those with good credit as less risky to insure. Check your credit report and score for any errors. Pay down high balances and limit new applications to improve your score. This can help you save $100-$200 per year on premiums.
Choose a no-frills policy
Consider dropping optional add-ons like roadside assistance or windscreen coverage if you don’t need them.
Stick to a basic third-party fire and theft policy, which only covers damage to other vehicles and loss due to fire or theft. This can reduce premiums by 30-50% compared to a comprehensive policy. But make sure the savings are worth the reduced coverage.
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