Finding the Best Car Insurance in Singapore

This post wa soriginally posted on Planner Bee.

Owning a car in Singapore comes with its fair share of responsibilities—and costs. One of the most important things to sort out is your car insurance. With so many providers and plans to choose from, it can be hard to know where to start. This article will walk you through what to consider so you can choose a plan that fits your needs and budget.

What to look for when comparing car insurance?

Choosing car insurance isn’t just about picking the cheapest option. It’s about finding the right balance between coverage, cost, and what works for your car and lifestyle. Here’s what to look out for:

Premium costs and excess (or deductibles)

• Premiums: This is the amount you pay each year for your insurance. It depends on several factors, including your age, driving record, car model, and how often you drive. If you drive a high-performance car or have a history of claims, your premium may be higher.
• Excess: This is the amount you pay out of pocket if you make a claim. For example, if your excess is $500 and the repair cost is $2,000, you’ll pay $500 and your insurer covers the rest. Choosing a higher excess can lower your premium, but make sure it’s an amount you’re comfortable paying if something happens.

Tip: If you’re a safe driver who hasn’t claimed in years, it might be worth taking a higher excess to enjoy lower premiums.

What does your car insurance really cover?

Choosing the right coverage depends on your car’s value, age, and how much risk you’re willing to take. Here’s a quick look at the main options:

Comprehensive

This is the most complete cover. It protects your car and others’ if there’s an accident. It also includes damage from fire, theft, vandalism, and even things like falling trees. It’s a good choice for newer or high-value cars.

Third-Party Only (TPO)

This is the basic level of insurance required by law in Singapore. It only covers damage you cause to other people’s vehicles or property. It won’t cover your own car. This is usually the cheapest option and may work for older cars with low resale value.

Third-Party, Fire, and Theft (TPFT)

This is a step up from TPO. It includes the same third-party cover but also protects your car if it’s stolen or damaged by fire. It’s a good middle-ground option if you want extra peace of mind without paying for full comprehensive cover.

Quick comparison:

When you compare insurance plans, don’t just look at the price. Think about what matters if you ever need to use it.

1. Claim process and service

• Quick claims: A smooth claims process helps during a stressful time. Look at how well insurers handle claims.

• Customer reviews: Look for testimonials and reviews to gauge customer satisfaction with an insurer’s service quality.

2. No-Claim Discount (NCD) and extra perks

• No-Claim Discount (NCD): You’ll get a discount for every year you don’t make a claim. The longer you go without claiming, the more you save.
• Extras: Some policies offer extra perks like roadside assistance, replacement car services, or coverage for personal belongings.

3. Exclusions and limitations

• Policy exclusions: Always read the fine print to understand what’s not covered by your policy. Common exclusions might include wear and tear, mechanical breakdowns, or damages from unauthorised drivers.

Read more: Should You Buy Insurance Yourself or Go Through an Agent?

Case study: Comparing car insurance from five leading providers in Singapore

Here’s a simple comparison of how five major insurers perform based on a sample driver profile. This can help you get a better sense of what to look for when choosing the right car insurance.

Sample scenario

• Driver: 35 years old, no accidents or claims
• Car: Toyota Corolla Altis, 5 years old
• No-Claim Discount (NCD): 50%

We compared the insurers based on four key factors:

• Annual premium cost
• Coverage limits and excesses
• Extra benefits and perks
• Customer service and claims ratings

Comparison table

Note: Premiums are estimates based on the example profile. Your actual premium may differ.

Key takeaways

• Budget Direct offers the lowest premiums. It’s a good option if you’re looking for essential cover at a lower cost.
• DirectAsia lets you customise your plan. If you have a good driving record, you may benefit from their NCD60, which offers more discounts than usual.
• Income Drivo is worth considering if you value quick support after an accident. Their Orange Force team responds fast on the ground.

Pro tip: It’s easy to assume the cheapest option is best, but a personalised quote can show you better value for your needs—sometimes with perks you didn’t expect.

How to compare car insurance in Singapore the smart way?

With so many options out there, comparing car insurance can feel overwhelming. But it doesn’t need to be. Here’s how to keep it simple and make confident choices.

Use online comparison tools

Websites like Planner Bee let you compare quotes from several insurers at once. It’s quick and helps you see exactly what you’re paying for, all in one place.

Check insurer reputation

Price isn’t everything. Read customer reviews and ratings to see how insurers handle claims, resolve issues, and support drivers. A cheap premium isn’t worth much if the service falls short when you really need it.

Tips to get the best car insurance deal in Singapore

Want to save money without giving up good coverage? These tips can help you make smarter choices.

1. Keep a clean driving record

The longer you go without making a claim, the more you save. In Singapore, your NCD increases by 10% each year, up to up to 50% after five years.

Some insurers, like DirectAsia, offer more. If you’ve kept a 50% NCD for five years, you may qualify for their NCD60 programme, which gives you an extra 10% off. That’s a solid reward for safe driving.

Tip: Consider paying for minor repairs yourself to protect your NCD and avoid higher premiums.

2. Bundle your insurance

Some insurers offer discounts when you bundle your car insurance with other policies, such as home or travel insurance. It’s a simple way to save and manage everything in one place.

3. Adjust your excess

Your excess, also known as a deductible, is the amount you’ll need to pay out-of-pocket before your insurer covers the rest of a claim. Choosing a higher excess can lower your annual premium, which helps you save money in the short term.

However, if something happens, you’ll need to pay that amount up front. For example, a S$1,000 excess might save you S$150 a year, but you’ll need to pay that S$1,000 if you make a claim. Make sure it fits your budget.

4. Review your policy every year

Don’t just renew without checking around. Prices and promotions change often, and you might find a better deal.

Use a comparison site to get updated quotes. Think about any changes in your driving habits too—like lower mileage or switching cars. Also, review your coverage. You might no longer need certain extras, or you might want better protection.

When you know what to look for—like price, benefits, service, and coverage—you can choose a plan that fits your life. Use tools, read reviews, and don’t hesitate to switch if something better comes up. A bit of effort now can save you money later.