The Ultimate Singapore Car Insurance Comparison Guide 2021
Reading time: 7 min read.
We cannot drive a vehicle in Singapore without insurance, we all know that. However, what most of us do not give a second thought to is the insurance we are buying for ourselves. Just because any insurance will enable you to become a legitimate driver in Singapore, you cannot pick the first one you like. Car insurance is a commitment that you will have to fulfill by paying premiums and the type of coverages you get in return will decide the return on investment. Hence, before signing the papers and taking possession of the new car or renewing insurance with your existing insurer, you need to undertake a thorough car insurance comparison in Singapore to pick only the best. For when the mishap happens, you will know that you are covered.
To cut your work short, we have compiled this ultimate guide that helps you to compare auto insurance in Singapore. Here, we tell you the factors you should explore before settling on coverage, the type of plans available and ultimately, an elaborate comparison among the top car insurers in Singapore. So, let’s get you insured, not with any random car insurance but only the best in Singapore.
Questions to ask before buying car insurance
The best way to compare car insurance is to start by asking the right questions about coverages and plans and analyse each potential insurance company based on them.
What is my current car insurance budget?
We recommend this is where you begin your search as you will not want to pay too high a premium and remain distressed or too low an amount and not receive the required coverages. The financially logical way to decide insurance affordability is to fit 5-year insurance payments right inside your total’s car budget when you buy car insurance in Singapore. The comprehensive plans give you the best coverage but they are also the costliest. Hence, start by getting the budget right.
What will the premium look like for me?
Most mainly compare car insurance quotes through third-party sites and leave only to approach the insurer and find a higher premium amount being stated. In reality, car insurance premiums are not calculated based on just the make and model of the vehicle you are driving. Insurers look into your experience as a driver, past claims’ history, age and even marital status. So, the right way to get an idea about premiums is to approach at least 3 top insurers in Singapore and request a quote. You will have an idea about the average premium you will have to pay.
Where will my car be fixed?
This question is important because you might have a preferred workshop where you like to take your car for repairs as you trust the mechanic and know he/she uses genuine parts but the workshop may not feature under the insurance company’s authorised list. Not that the insurer-recommended repairers will perform a shady job but all of us want to stick to the mechanic whom we know. Hence, you will want car insurance that allows you to repair the vehicle in your preferred workshop and most top car insurers in Singapore have a plan for that. Research, inquire about the matter with the insurer and then proceed to buy insurance.
Car insurance plans and the one you might need
When you compare car insurance comparison in Singapore, you will frequently come across three terms – TPO, TPFT and COMP. TPO stands for Third-Party Only car insurance plan where the expenses for damage or injury to someone else involved in the accident are covered. The insured will have to meet his/her own liabilities arising from the accident. As evident, TPO is the most basic insurance plan in Singapore and thus costs the least.
TPFT is an upgrade on TPO. Along with coverage of third-party injury and damage, expenses related to theft or fire damage to the insured’s car come under the plan. The cost is marginally higher than TPO. Lastly, COMP or comprehensive car insurance plan in Singapore is the best of the lot. It costs the insured the highest but covers almost all car-related risks like personal and third-party damage or injury due to an accident or natural disaster, legal expenses and more.
So, which one do you need? We recommend comprehensive plans as that is what keeps you most financially secured. However, if you are on a tight budget currently and an experienced driver, you can settle for TPO provided you know that you park in and drive through safe spots. Additionally, owners of old cars who might have to scrap the vehicle after the next damage may find comprehensive plans unnecessary.
NCD and excess
Before moving on to compare auto insurance companies in Singapore, let us give you a quick rundown about excess and NCD. An excess is an amount you have to pay while making a claim before the insurance can take effect. This is a way to reduce your premium payments now and the best insurers offer customised plans. NCD is the discount you are eligible for during renewal if you have not made any claims during the past years. Naturally, the higher the NCD on offer, the better for you.
Now, let us bring all the above information together and start comparing insurance companies and plans in Singapore.
The best insurers in Singapore
Direct Asia features right at the top of the list of car insurers in Singapore. This is the first insurance company to reward its clients with NCD 60 that provides a further 10% discount to NCD 50 holders. Along with this, Direct Asia’s TPO, TPFT and comprehensive plans are tailor-made to suit your specific needs, irrespective of your driving experience or the type of car you own.
You can choose the value plan or flexible plan to include multiple or unlimited numbers of drivers in your insurance. Direct Asia also allows you to pick your preferred workshop for repairs and its NCD Protector Plan helps you to protect your NCD with 1 at-fault claim. The entire package makes Direct Asia’s car insurance plan the best currently – for the price you pay, the return on investment through the coverages are indeed impressive.
Aviva Car Insurance
Compare motor insurance in Singapore and Aviva might not seem that lucrative but this insurance company has become the go-to insurer of young and experienced drivers. Its Lite plan is the cheapest among all and naturally affordable for young drivers who are just starting out but the excess payment is high at the time of the claim which helps to keep the premiums down initially. Aviva considers all drivers up to the age of 27 years high-risk (keep this in mind) but based on your driving experience and profile, you are eligible for a 25% promotion discount with waivers on excess in its costliest Prestige plan.
NTUC Incomes claims to have the best 24*7 emergency response team in Singapore. An insured with NTUC Income is eligible to call its Orange Force in the event of an accident where the insurer will take care of the entire accident scene, right from the insured’s medical coverage to vehicle removal and more. The insurer does not allow you to fix your car at any workshop if you have bought one of their basic plans. That facility is only available with the Drivo Classic Premium Plan which you will want to buy if you wish to stick to your preferred workshop. All these can drive up your average premium payments to S$970.
MSIG car insurance
We recommend MSIG car insurance for those of you who would like a loan protection clause in their insurance. Compare car insurance quotes and MSIG’s MotorMax plan might appear the costliest in the market but the benefit of covering the car loan in case the insured passes away is calming for many families. Beyond this, MSIG extends replacement car options and transport allowance features but when it comes to discounts and promotions, the insurance company fails to impress its clients.
If you are looking to buy car insurance without ever leaving the comfort of your home with efficient 24*7 roadside assistance and comprehensive personal accident benefits, FWD is the car insurance for you. FWD gives you a “lifetime NCD guarantee” after you cross NCD 50, which is great for customers wishing to renew. Choosing your preferred workshop feature is available with FWD but their workmanship defects warranty scheme will then not apply which is limited to their authorised list only. The excess is also a bit high for young drivers but the insurer makes up for it with the plans on offer.
Pick the best, pick right
The crux of this post – avoid picking car insurance randomly. Choose the one that actually benefits you and your family. Right now, Direct Asia car insurance is the most inclusive, affordable, customisable and beneficial insurance in Singapore. Our comprehensive plan covers all risks and we boast of a 90% customer satisfaction rate. So, take your time for car insurance comparison in Singapore. Make an informed decision. Contact Direct Asia’s expert team and get a quote online now to get started.