A car insurance policy uses a small set of words again and again. Each one has a fixed meaning. The same word can decide what you pay, what the insurer covers and what happens after an accident.
Car insurance exists because a crash can cost far more than most households hold in savings. In Singapore, a policy also covers harm to other people and their property. That is why the policy wording matters even when the quote looks simple.
This guide explains fifteen terms in the order a reader meets them: buying, the policy itself, and claiming. It is general information, not advice about any one car or driver. To see plans for your own car, use the car insurance quote page.
1. Words you meet when you buy
The first screens of a quote ask about the car and the driver. These two terms explain how those answers turn into a price.
Premium
The premium is the price you pay for the policy. Insurers weigh the car, the main driver, the No Claim Discount, claims and demerit points, and where repairs are done. Each insurer weighs them differently.
That is why prices for the same car can differ widely. On 11 November 2026, 15 insurers price a three-year-old Toyota Corolla Altis 1.6 with a 50% No Claim Discount from about S$713 to about S$1,730. A three-year-old BMW 330i 2.0 on the same basis ranges from about S$1,000 to about S$3,040 across 16 insurers. These are today's examples, not what any reader will pay. See the Corolla Altis price page.
Main driver
The main driver is the person who drives the car most often. Age, years of driving and job all feed into the price. Young drivers and new drivers usually pay more and often face a higher excess. A parent who lets a child drive the family car should check who is named as the main driver.
2. The three levels of cover
Every policy sits at one of three levels. The level sets whether your own car is protected.
Comprehensive
Comprehensive cover pays for damage to your own car from accidents, fire and theft. It also pays for injury to other people and damage to their property. Most drivers of newer cars choose it.
Third party, fire and theft
This level covers what you do to other people and their property. It also covers your own car if it is stolen or catches fire. It does not pay for accident damage to your own car. A car hit while parked at a hawker centre would fall outside the fire and theft part.
Third party only
Third party only is the legal minimum. It covers injury to others and damage to their property, but never your own car. It can suit an older car that is worth little. You can switch between all three levels on the results page without answering the questions again.
3. Words in the policy itself
Once the policy is issued, a handful of terms set out who is covered and what the plan includes.
Named driver
A named driver is someone listed on the policy as allowed to drive. A driver who is not named is covered only if the policy terms allow it. If a friend borrows the car on a weekend, check the policy terms first.
Authorised workshop
An authorised workshop is one the insurer approves for repairs. Some plans send you to these workshops. Others let you choose any workshop. Plans that use authorised workshops usually cost less than plans that let you choose.
Windscreen cover
Windscreen cover pays for repair or replacement of the car's windscreen. A stone thrown up from the road on an expressway is a familiar cause of a crack. Limits and any separate excess differ between plans, so compare them.
Roadside assistance
Roadside assistance covers 24-hour help and towing. A car that will not start in a multi-storey car park late at night is a typical case. Check how the plan defines a breakdown call, because mechanical breakdown itself is not covered.
Personal accident cover for the driver
This part of the policy pays a benefit if the driver is injured. It is separate from cover for other people's injuries. The amounts differ between plans.
4. Words about what is left out
Exclusions
Exclusions are the situations the policy will not pay for. They matter as much as the cover. On this site's plans they include:
- 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.
Wear and tear means the slow ageing of parts such as tyres and brakes. Insurance pays for sudden events, not for upkeep. A driver who uses the car for private hire should read this list carefully, since private hire sits among the exclusions.
5. Words that matter when you claim
These terms decide how much of a loss you carry yourself and how a claim affects later premiums. To start a claim, see the Claims page.
Excess
The excess is what you pay towards each claim for damage to your own car. If a reversing scrape in an HDB car park costs a certain amount to repair, the excess comes off what the insurer pays. Young or new drivers often pay a higher excess. A higher excess can change the premium, so check what it does on each plan.
At-fault claim
An at-fault claim is one where the policyholder is judged mainly responsible for the accident. One usually cuts the No Claim Discount by 20 to 30 points. Demerit points and a recent at-fault claim also raise the price, and some insurers will not quote online.
No Claim Discount
The No Claim Discount (NCD) rewards each year without a claim. It is 10% for one year, rising by 10 points a year to 50% after five years. It is the single biggest discount, worth up to half the premium. It belongs to you, not the car. When you switch insurers, the new insurer checks it with the old one.
NCD protector
An NCD protector is an add-on on many plans. It keeps your discount after one claim. Plans differ on how it works, so read the wording and the extra cost before adding it.
In summary
Three things matter most when reading a car policy. First, the level of cover decides whether your own car is protected, and the exclusions list shows what no level will pay for. Second, the excess and the choice of workshop shape what you pay at claim time and at purchase. Third, the No Claim Discount is worth up to half the premium and moves with you, so a claim can cost more than the repair bill. When you are ready to compare plans, use the car quote page or compare two insurers, and confirm the price through each plan's Buy Now link.