Understanding the Types of Car Insurance in Singapore

1. Legal Requirements & Basics

In Singapore, having car insurance is a legal requirement. Every motor vehicle used on public roads must carry at least third-party coverage. This protects against liability claims if you cause an accident involving injury or property damage to others.

2. The Three Main Types of Car Insurance

a) Third-Party Only (TPO)

• The most basic and affordable coverage.

• Protects against third-party property damage, injury or death, and legal costs.

• Does not cover your own car’s damages, nor events like fire or theft.

• Best suited for drivers on a tight budget or those with older cars.

b) Third-Party, Fire and Theft (TPFT)

• Covers everything under TPO, plus protection against fire damage and theft of your car.

• Does not cover collision damages, natural disasters, or windscreen repairs.

• Suitable for older cars or drivers seeking mid-level coverage without paying high premiums.

c) Comprehensive

• The broadest and most complete protection.

• Covers:

  • Third-party liability (injury/death & property)

  • Fire, theft, collisions, natural disasters

  • Windscreen damage, civil disturbances, personal accident, and medical expenses

• May also include perks like courtesy car, daily transport allowance, and access to selected workshops.

• Premiums are higher but offer maximum peace of mind.

3. Other Key Factors: Excess & NCD

Excess (Deductible)

The amount you must pay out of pocket before the insurer covers the claim. Types include:

• Own Damage, Third-Party, or All Claims.

• The higher the excess, the lower the premium.

No-Claim Discount (NCD)

A discount offered to drivers who make no claims during a certain period. Some comprehensive policies even offer lifetime NCD protection.

4. Tips for Choosing the Right Plan

Extra tips:

• Compare quotes across different insurers to get the best value.

• Check workshop requirements, named driver rules, and optional add-ons such as flood or windscreen protection.

• Consider voluntary excess to lower your premium, though it increases your personal liability.

5. Quick Summary

• TPO = Minimum legal, cheapest, no coverage for your own car.

• TPFT = Adds fire & theft, suitable for older cars.

• Comprehensive = Covers almost everything, higher cost but full peace of mind.

• Understand excess & NCD to manage costs better.

• Always choose based on your needs and budget, and compare insurers.