Best Car Insurance

Compare Singapore's Best Car Insurance in 2021

Finding your ideal car insurance policy does not need to be complicated.

From the cheapest policy to the best insurance coverage for your motor vehicle, find a wide range of car insurance policies to suit your different needs at Seedly Reviews. You can also read real user reviews on your shortlisted car insurance providers for an unbiased take.

What Is Car Insurance?

Car insurance is a contract between you and your chosen insurance company. This contract protects you against financial loss in the unfortunate event of an accident or theft. In exchange for paying a premium, the insurance company will cover your losses as outlined in your purchased insurance policy.

Why Do I Need Car Insurance?

In short, having motor insurance is compulsory if you want to drive a car in Singapore.

No matter what vehicle you operate, having vehicle insurance is mandatory for all drivers in Singapore to utilise that particular vehicle on public roads.

Your motor insurance policy must cover at least cover third-party related accidents that include damage or death of, or bodily injury to, any person arising out of the use of that vehicle on the road.

Moreover, a vehicle is a big-ticket expense that you want to protect, and that’s why we highly recommend that you get car insurance. It’s a necessity that can help pay for repairs to your vehicle after an accident, depending on what kind of coverage you select. Like other types of insurance, getting the cheapest car insurance should not be the only priority for car owners. You'll need to think about how easy claims can be processed and how much actual coverage you're getting for the amount you pay.

The best way to ascertain this is by relying on real user reviews by customers who have purchased car insurance before.

Which Is The Best Car Insurance For You?

There are a few major car insurance providers in Singapore. The more popular ones are:

Types of Car Insurance Plans Available

There are generally 3 types of insurance plans available for your vehicle:

How Much Does Car Insurance Cost?

The price of a car insurance plan starts from about S$600, other constituting factors include:

• The type of plan you choose - the most basic, or the most comprehensive
• Your insurance provider
• Your driver profile
• Additional Add-ons
• No Claims Discounts you are applicable for

The price of premiums differs according to your driver profile. The safer your profile is deemed, the lower your premium.

How safe your driver profile is will be assessed based on a few criteria:

What is NCD, and How Does NCD Work?

The No Claims Discount (NCD) is an initiative to incentivise safe driving. NCD is rewarded by your insurance provider when you make no claims under your policy for a year or more with the current/existing insurer.

The longer you maintain your claim-free record, the higher your NCD, the more discount you are eligible for.

Your NCD entitles you to get a discount on your car insurance premium upon renewal. The NCD discount is as follows

No Claim Discount rate for Private Cars:

Will making a claim affect my NCD?

This depends on whether you, the insured driver, were at fault.

In cases where you are found to be at fault, your NCD will be reduced and the amount of NCD penalised can vary from insurer to insurer. But generally, this would be how most companies structure themselves:

NCD Penalties

As you can see, usually when you make an "at-fault" claim, your NCD usually drops by 30%. However, some insurance providers like AVIVA who only deducts your NCD by 10%, have lower NCD penalties.

NCD Protector

Almost all insurance providers will allow you to purchase an add-on known as an NCD Protector, which protects your NCD, usually has to be NCD30 and above, from reducing in the event of a single claim.

What is Car Insurance Excess?

Car Insurance excess refers to the amount you have to pay before your insurance provider forks out any money for you.

It is a deductible on your part, that contributes to part of the claim. Your insurance provider will then cover the remaining amount (up to their stipulated limit). This excess helps lowers premiums, and reminds drivers to have a sense of accountability.

If the cost of repair for your damaged vehicle is $1,000 and your excess to be paid is S$300, then your insurance provider will pay for the remaining S$700.

The higher your excess, the lower your premium. While low premiums are incredibly attractive, you might want to be careful if you're paying a low premium because you might have to pay a larger excess in the event of an accident.

Young and/or Inexperienced Driver Excess

Younger and/or Inexperienced drivers are deemed to be riskier drivers.

Hence, drivers classified as young, usually below the age of 25, or inexperienced, with less than 2-3 years of driving experience, will have to pay higher excess.

Note that not all insurance providers define young and/or inexperienced the same way.

Tips to Get the Cheapest Car Insurance

Here's how you can stand to enjoy cheaper car insurance or get lower premiums:

1. No Claim Discount
   Being a safe driver is rewarding! Use your NCD to help you achieve lower premiums.
2. Offense-free Discount
   As a testament to your safe driving, the Singapore Traffic Police will issue safe drivers who have not had any bad records for the last 3 years, a Certificate of Merit. This entitles you to a discount on your car insurance. Additionally, this discount can be applied on top of your NCD.
3. Off-peak Cars
   Car insurance plans usually offer lower premiums for cars that are less utilised.
4. Choose plans that permit repairs at Authorised Workshops only
   Usually, policies that allow you to use your preferred workshops have higher premiums than those that restrict you to a few authorised workshops only. If you are not particular about going to your favoured workshop, perhaps consider the plan that only covers visits to authorised workshops, to save on your premium.

How To Choose The Best Car Insurance For You

Whether you currently own a car or are looking to get one, you'll definitely want to know how much is car insurance in Singapore, and which car insurance is better in Singapore!

Besides our reviews, you can also read up on various articles with regard to the expenses you might incur when you own a car:

• Ultimate Driver's Guide To The Best Car Insurance In Singapore
• Cost Of Getting A Car In Singapore
  

How To Apply For Car Insurance?

With almost everything available online, did you know that you can now get a car insurance quote online? Here are the details you will usually need in order to apply for car insurance in Singapore:

• Vehicle make and model
• Engine capacity of your car
• The year your car was registered
• Whether your car is under the Off-Peak Car Scheme
• Gender
• Marital status
• Date of Birth
• Other information: How many years have you been driving? Have you made a claim in the past? What is your No-claim Discount (NCD)? What is your coverage period?

If you still have questions after reading real user reviews, feel free to ask our community of personal finance enthusiasts, experts, and experienced professionals on Seedly!