Car insurance is one of the steady costs of owning a car in Singapore, alongside season parking and petrol. Most drivers renew it once a year. Few read the policy closely until something goes wrong.
This guide explains what a typical car policy does and does not do. It covers who the policy is for, the main things it pays for, the usual exclusions and how a claim is paid. It ends with how to read and compare plans on this site.
The cover exists because a road accident can cost more than most households can pay at once. A collision on the expressway can damage two cars and injure several people. Insurance spreads that risk. Each policyholder pays a premium, and the insurer pays claims that fall within the policy's terms.
1. Who the policy is for
A car policy is built around three things: the car, the driving record and the main driver. The insurer prices the risk from all three. An older, lower-value car, a long driving record and no past claims each affect the premium.
The policy also sets out who may drive the car. Drivers named on the policy are covered on its terms. Drivers not named on the policy are excluded, outside what the policy allows. This matters in households where a spouse or an adult child sometimes takes the car to the hawker centre or the MRT station.
The policies compared here are for private use. Using the car for private hire falls outside the cover. A driver who plans to take on ride-hailing trips would need a different kind of policy.
2. What comprehensive cover pays for
A comprehensive policy usually pays for five main things:
- Damage to your own car from accidents, fire and theft.
- Injury to other people and damage to their property, such as another car or a fence.
- Windscreen repair or replacement.
- Personal accident cover for the driver.
- 24-hour roadside assistance and towing.
The first item is what separates comprehensive cover from the basic kind. It covers a dent from a multi-storey car park, a fire under the bonnet or a stolen car. The second item protects the driver against claims from others. These can be large where someone is injured.
Windscreen cover deals with a common, specific loss, such as a crack from a stone thrown up on the road. Personal accident cover pays a benefit if the driver is hurt. Roadside assistance helps when the car cannot be driven, at any hour. The limits on each of these differ between plans, so the plan details on the comparison page are worth reading.
3. Comprehensive or third party
There are two broad levels of cover. Comprehensive cover also pays for damage to your own car. Third party cover only pays for what you do to others: their injuries and their property.
Third party cover suits older, lower-value cars. If the car is worth little, paying to insure it against damage may not make sense to the owner. For a newer car, the cost of repairing it after an accident is usually the larger concern.
The comparison examples on this site all use comprehensive cover for private use. When reading any plan, it is worth confirming which level of cover it offers before looking at the price.
4. What the policy does not cover
Every policy has exclusions. The usual ones are:
- Driving under the influence of alcohol or drugs.
- Drivers not named on the policy, outside its terms.
- Private hire, racing or rallies.
- Wear and tear, and mechanical breakdown.
The first three concern how and by whom the car is used. A claim arising from any of them falls outside the cover. This is so even where the damage itself would otherwise be covered.
The last exclusion is often misunderstood. Car insurance pays for sudden events, such as a collision or a fire. It does not pay for a worn-out battery, thinning brake pads or an engine fault. Those are part of the cost of running a car. Roadside assistance may help when the car stops, but what it includes after a breakdown differs between plans.
5. How a claim is paid
When a claim is made for damage to your own car, you usually pay part of it first. This is the excess. It applies to each claim. Young or new drivers often pay a higher excess. The amount differs between plans.
Where the car is repaired also varies. Some plans send you to the insurer's authorised workshops. Others let you choose. A driver with a trusted workshop may want to check this before buying. The steps for making a claim are set out on the Claims page.
A claim can also affect future premiums through the No Claim Discount (NCD). The discount is 10% for each year without a claim, up to 50% after five years. One at-fault claim usually cuts it by 20 to 30 points. Some plans protect the discount after one claim. The NCD belongs to the driver, not the car, so it moves with the driver to a new insurer.
6. How to read a plan on the comparison page
The comparison page ranks plans by premium only. It does not judge which plan is right for a given driver. The premium is one figure. The cover behind it is the rest of the picture.
The site shows typical prices for a few sample profiles. Each uses a main driver aged 40, married, with an office job, on comprehensive cover for private use:
- A 5-year-old Toyota Corolla Altis 1.6, driver with 10 to 19 years' experience and 50% NCD: typical prices.
- A 3-year-old Honda Vezel 1.5X, driver with 6 years' experience and 20% NCD: typical prices.
- A 6-year-old BMW 320i, driver with 20 or more years' experience and 50% NCD: typical prices.
Comparing these shows how the car and the driving record move the premium. When reading any single plan, it helps to check a few points beside the price: the excess, whether the NCD is protected, the workshop arrangement and who may drive the car.
7. How to compare plans here
The car insurance quote page asks about the car, the driving record and the main driver, all on one page. It then shows prices from the insurers on the site's panel.
When a plan is chosen, the purchase is completed on the insurer's own site. The answers already given are filled in there. The policy is between the driver and the insurer, so its wording is the final reference for what is covered.
Other guides on the site cover different kinds of insurance and are listed on the guides page.
In summary
Car insurance pays for sudden losses on the road, and three points matter most when reading a plan. First, comprehensive cover also pays for damage to your own car, while third party cover only pays for harm done to others. Second, exclusions such as unnamed drivers, private hire, driving under the influence and wear and tear sit outside the cover. Third, the excess, the workshop arrangement and the No Claim Discount shape what a claim costs, both now and at renewal, and these differ between the plans shown on the comparison page.