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Guide to car insurance prices in Singapore

Car insurance is compulsory in Singapore, just like in other parts of the world. However, car insurance prices vary from one person to another coming down to the type of car up for insurance.

The amount of money that one ends up paying for Car insurance cover comes down to the type of cover. Third Party Fire, Third Party Cover and Theft & Comprehensive Cover are the three main car insurance covers in Singapore.

Third Party Cover

Third Party Cover covers all the damages caused by an insured driver. The policy covers damage to property belonging to other persons such as cars, fences, and street lights. Such policies also include a driver’s legal liability for death and bodily injuries caused due to negligence.

In Singapore, Third Party cover is an entry-level policy in most insurance companies. The low coverage it offers is one of the reasons why it tends to be cheaper.

Third Party Fire Theft

Third Party Fire & Theft car insurance covers all the damages and losses caused by a driver while driving.

In addition to covering damages caused, it also offers protection against accidental loss or damage incurred through fire. The policy costs slightly more compared to Third Party cover, given the increased coverage.

Comprehensive Cover

Comprehensive cover is the most common and popular insurance cover given its increased coverage. The policy covers all the items under Third Party Cover and Third Party Fire & Theft.

However, it goes the extra mile to cover repair and replacement costs of the insured driver’s vehicle. It also includes all the expenses incurred in repairing a car involved in an accident, theft or vandalism.

Comprehensive Cover is an ideal insurance cover as it offers cover to the insured driver even if they are the ones at fault in an accident. In Singapore, drivers still financing their car must take a comprehensive cover.

Factors That Affect Coverage

The costs of insuring older vehicles tend to be a little bit cheaper, in part because of the availability of spare parts. For new cars, spare parts tend to be quite expensive, thus the reason why companies charge a premium.

Engine Capacity

Vehicles with a more significant engine capacity cost more compared to those with low ability. For that reason, car insurance covers, would be higher given the higher costs of maintaining and repairing such cars.

Type of Car

The kind of car one is driving also determines the amount of money they would pay on insurance cover. Turbocharged and coupe cars command a fortune when it comes to insurance in part because of the cost of maintaining them. This is similar to the issue faced with cars of a higher engine capacity.

Driver’s Personal Details

Driving experience and age affect the type of insurance cover as they form the basis of car insurance.  Middle-aged and more experienced car drivers often walk away with a better deal. It is in part because they are less likely to cause accidents on the roads.

How to End Up with More Affordable Car Insurance?

Finding cheap car insurance is everybody’s dream, given that one’s insurance cover is not the only bill one has to contend with. Your Car Insurance premium is one of the main things to consider when taking on a cover.

Choosing a car with a small engine is a sure way of ending up with a lower premium. It is in part because insurance companies consider such vehicles as less risky. Another sure way of ending up with lower premiums is fitting items such as theft alarm among other security tools.

Driving all the time safely builds one an illustrious driving history that insurance companies look for to offer lower premiums.

*The advice offered in this column is intended for informational purposes only and not intended to replace or substitute for any professional, financial, legal, or other professional advice. If you have specific concerns or a situation in which you require professional help, you should consult with an appropriately trained and qualified adviser.


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