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Car insurance comparison (Singapore) in 2022: A Go-To Guide

car insurance comparison singapore
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There’s no such thing as a cheap car insurance plan, especially in Singapore, where motorists try to cut down expenses related to their automobile — given how high car prices are. Considering that you might not actually get any benefit from car insurance if you are talented and lucky enough to avoid any car accident, then getting auto insurance may all the more seem expensive.

But there are two major reasons why you should get car insurance in Singapore: one, it is illegal to drive a car in the country without the vehicle being insured first. Two, if you live in a country with the world’s highest car prices, why not get a car insurance policy and secure that hard-earned money and investment?

How Car Insurance Works, And What Exactly Does Car Insurance Cover?

The best car insurance plans provide policyholders a layer of security to car owners in case they get involved in a car accident. By paying a specific amount of car insurance premium annually or monthly, motorists get entitled to coverage or financial compensations during accidents and mishaps, like road and medical assistance, free car servicing, and other options depending on the car insurance plan.

Of course, there are other factors to consider, such as the type of auto insurance availed, what kind of damage occurred, and who was responsible for the incident, but the general idea is that the company who sold the car insurance policy, or the insurer, pays expenses relative to what the car insurance plan provides.

Car insurance policies may also cover damages caused by the concerned motorist to other individuals and other property aside from medical expenses to the policy holder, repairs to the vehicle, and sometimes even car replacement — depending on what plan they hold. More of that will be discussed in the next segment. 

Types of Car Insurances

Basically, there are three types of car insurance policy allowed in Singapore, the bare minimum being the third-party-only car insurance. Other types are also available — the third party fire and theft and the comprehensive car insurances.

What they cover is obvious: third party only covers accidental damage to third party and property; while fire and theft combine third party only and damage or loss due to fire and theft, and comprehensive adds more circumstances to the table.

1. Third-Party Only

  • As the name suggests, a Third Party Only car insurance plan covers only injury or death to the third party or people who are not the drivers or passengers during accidents — or pedestrians and other people who may be involved in the car accident and who may need assistance.
  • This car insurance plan also includes possible damage to property from people who are within the third party — not drivers, passengers, or relatives of the motorists
  • It is named Third Party Only as the car owner gets no financial support for any personal expenses he or she may incur after the accident, like hospitalization for the driver or the passengers, or even repair and restoration of his or her car. Sometimes, passengers may get compensation if some standards are met, like if they are not affiliated with the driver.
  • This is the bare minimum requirement for cars being registered in Singapore and is often times the cheapest in the market.

2. Third-Party Fire and Theft

  • Basically same as the third party only car insurance, but includes compensation for the car owner in case of fire and theft, and other damages due to the fire.
  • A car is considered a property in this type of car insurance, which allows motorists to get compensation from damage brought by fire and theft. This means that if a car’s door is damaged due to theft, the car insurance company would cover the costs for its repair or replacement.
  • It is definitely an upgrade from a third party only car insurance, but it still does not cover a wide extent of possible accidents as car owners would only be compensated, obviously, for fire and theft. Replacement cars and other costs would only be provided, under this type of car insurance, if the incident is a fire and theft-related.

3. Comprehensive

  • Combines third party only car insurance, fire and theft, along with other perks like compensation for personal accidents, hospitalization of driver and passengers, or even for death in some cases. There are also other customizable options that would protect drivers and the vehicle even more
  • Some comprehensive car insurances include more helpful options for motorists, like a 24/7 roadside assistance, windshield replacement for damages, and other perks that may be offered. One example of an additional perk is the provision of an additional driver, which still allows car insurance coverage for the vehicle if another designated person operates it during the accident
  • Daily transport allowance can be provided to the car owner if a replacement car is not given while the vehicle is being repaired; warranties on repairs are also possible depending on the insurer’s set of rules
  • Comprehensive car insurances are obviously the most expensive due to the wide coverage of the car insurance, but these are are usually preferred to by banks who grant auto loans as it gives both loaner and loanee a peace of mind

How are Car Insurances Computed?

There is no exact way as to how car insurances are computed. However, there are certain factors that indicate whether a company would charge you higher or lower for your car insurance premiums.

For example, if a car tends to be on the older side — that is, over five years old and has outdated safety features — then the said car’s owner might need to shell out more money for the car insurance.

Age and driving experience are also key points for car insurance sellers: the longer the driving experience, then the more likely one can get cheaper car insurance. Similarly, those considered vulnerable, or those too young and too old to drive, may encounter higher insurance costs.

Record also plays a part in car insurance costs, as the so-called no-claim discount or NCD increases every year that a driver does not make a claim from the insurance company due to his or her own fault. The higher the no-claim discount rate, the higher discount a car owner can get; plus, these NCDs are often considered also even if a motorist switches insurance companies.

Which Type of Car Insurance is The Cheapest?

According to a 2019 story from the Singapore Business Review, the average car insurance price in Singapore at that time was just S$862, which is way less than New York’s S$4,097.

But while this gives drivers in Singapore a sigh of relief, an average of S$862 per year is still not easy on the pocket, considering that motorists also have to deal with other additional tax payments like the Certificate of Entitlement which car owners have to deal with so that their vehicles would be road-legal.

People looking to save on money can go for a Third Party Only insurance — usually the cheapest kind of car insurance with some offerings starting at S$300 — at the risk of their car not being covered in case of accidents.

But considering the complicated manner of calculating car insurance premiums in Singapore, there might be cases where it is cheaper to pursue a comprehensive insurance plan

For instance, an inexperienced driver with past accident records getting a third party-only car insurance and another driver with a clean record and with over five years of driving experience getting comprehensive plans may actually pay the same annual premium. So it still boils down to driving behavior and proper car maintenance.

8 Best Car Insurance Plans in Singapore: A 2022 Guide

As mentioned above, there is no fixed price for a car insurance policy as these plans rely heavily on personal information. But that being said, here are some of the best car insurance options if an applicant is a 30-year-old male with at least five years of driving experience, and who drives a Japan-made sedan:

Insurance Company Description Plans Offered/ Perks Annual Fee

Allianz

Allianz’ Motor Protect Insurance promises a wide coverage as they ‘expect even the unexpected’ to give customers a peace of mind

  • Offers third party only, third party and fire, and comprehensive types of car insurance.
  • Third party only car insurance also provides legal representation assistance of up to S$3,000 per accident
  • Comprehensive plan offers complimentary courtesy car while customer’s car is being repaired, and possible replacement car if the insured vehicle is damaged beyond repair

Starts at around S$850

MSIG

MSIG offers two main products, the MotorMax and the MotorMax Plus at a low price despite having a wide range of car insurance solutions

  • MotorMax insurance provides S$20,000 accident benefit for policy owners and S$10,000 for authorized drivers; has over 30 authorized workshops to choose from for repairs
  • MotorMaxPlus provides a S$100,000 personal accident benefit for the policy holder, and S$50,000 for the authorized driver. Any workshop would be okay for repairs.
  • MotorMax car insurance does not cover transportation allowance, new for old replacement, and loan protection benefits.
  • MotorMax Plus on the other hand allots S$50 per day transportation allowance while vehicle is being fixed, allows for a new for old replacement, and covers up to S$100,000 loan protection benefits.

Starts at around S$820

AIG

  • AIG claims to not only provide car insurance for car owners, but the technology needed to keep people on the roads safe.
  • It also boasts its collision-only plan, which covers effects of your car hitting another vehicle
  • The company presents a way to save on expenses by choosing the AIG Car Insurance Collision-Only Plan, which as the name suggests, only covers collision with other vehicles
  • The plan covers collision, fire due to collision, and hit and run incidents; and third party-liability for bodily injury and damage
  • The plan however does not cover other accidents, like your car hitting another object, theft, damage due to flood, and other acts of God

Starts at around S$1,020

FWD

FWD says that its offerings stand out from the rest of the competition because they have certain features like 24-hour roadside assistance for both accidental and non-accidental breakdown, and a 50 percent no claim discount lifetime guarantee

  • Their comprehensive car insurance plan offers complimentary courtesy car for up to three months while car is under repair or after car was stolen, plus daily transport allowance of S$80
  • All three of their comprehensive plans (classic, executive, max limit) and even their third party only and third party fire and theft plans cover claims made for accidents or theft in West Malaysia and parts of Thailand
  • Repairs at FWD accredited workshops are guaranteed
  • Replacement possible if car is accidentally damaged or is written off; new car replacement if car is written off or stolen within 12 months since purchase
  • People trusted by the owner to drive their cars are also insured

Starts at around S$920

Etiqa

Etiqa offers all three types of car insurance, but they also provide customers with customizable add-ons like picking the workshop of your choice. Also, Etiqa provides good options for young drivers, who may get quoted for higher annual prices due to inexperience.

  • Offers third party only, third party fire and theft, and comprehensive types of insurance, with possible 5 percent discount if a driver is demerit-free for the past three years
  • Aside from windshield protection, customers whose cars have sunroofs can also ensure these items in case of unfortunate incidents
  • Comprehensive plan offers assistance of up to S$2,000 for towing to repairers
  • Only comprehensive plan covers personal accident benefits, medical expenses, daily transport allowances

Starts at around S$1,160

Singlife with Aviva

  • Customers picking Singlife with Aviva’s comprehensive car insurance can choose between three offerings — Lite, Standard, and Prestige.
  • All three provide an up to S$5 million coverage for damage to third party property, and medical expenses for the driver and passengers in varying degrees
  • Prestige plan is a good pick for young and inexperienced motorists as no additional excess offering ensures that young drivers do not need to pay more
  • 24/7 Emergency Assistance also available with plans; no claim discount remains intact if proven that car owner is not responsible for damage incurred by vehicle
  • Lite, Standard, and Prestige plans all provide brand new car replacement if vehicles are written off. Cars less than 12 months old are eligible under Lite and Standard, while new cars under 24 months old would still be replaced under Prestige
  • Repairs for Lite customers should be done with approved shops only; any repairer is allowed for both Standard or Prestige although under Standard, excess will be doubled if not with approved repairer

Starts at around S$1,060

Income Drivo Car Insurance

Drivo prides in its Orange Force, a roadside assistance from its accident response team that covers the whole of Singapore. There are also other offerings that customers may partner with their insurance to boost its coverage

  • Two main car insurance offerings — the Drivo Premium and the Drivo Classic, which do not differ much aside from vehicle repairs. Under Drivo Premium, customers can pick their preferred workshop for repairs of their damaged cars whereas under Drivo Classic, repairs must be done with workshops chosen by Income
  • Both car insurance policies assure customers of compensation for lost or damaged vehicles (market value at time of accident), medical expenses up to S$1,000, personal accident benefits of up to S$50,000, towing service of up to S$500, among others

Starts at around S$1,000

HL Assurance Car Protect360

HL Assurance or HLAS like other top car insurance companies also offer a daily transport allowance, a 24/7 roadside assistance in case of breakdowns, and a high medical coverage for drivers and passengers.

  • Under Car Protect360, customers are compensated up to the market value of the car during the accident — whether it be due to fire, theft, act of God, fallen object, riot, strike, flood, and other incidents
  • Car and windshield repairs are covered, but excesses are halved if car is repaired with accredited HL Assurance workshop
  • Third party property damage coverage is up to S$5 million, while death or injury to third party is unlimited
  • Personal accident coverage of up to S$20,000 for policy holder, up to S$10,000 each for authorized driver and passengers
  • Transport allowance of S$50 per day or a total of S$1,000; towing coverage of up to S$500

Starts at around S$1,330

1. Allianz – Value for money insurance

Allianz’ car insurance policy may be one of the cheapest in Singapore, but it appears to surely be great value for money, especially if motorists are looking for basic coverage from a motor insurance coverage but at the same time, aiming to trim down car-related expenses.

Allianz offers several perks that can be found on more expensive car insurance policies, like a complimentary 24/7 roadside assistance, a lifetime warranty on repairs, a complimentary courtesy car while the vehicle is being repaired, and a possibility of replacing a new, less than two-year-old car for older one if the insured vehicle was declared damaged beyond repair.

While they offer third party only insurances, getting the comprehensive option is still the best option due to the wide coverage.

allianz car insurance

2. MSIG

MSIG not only boasts of long years of existence — which is always a plus for car insurance sellers — as it also holds an A+/Stable financial rating from credit rating agency Standard and Poor’s making it a common choice among motorists looking for their policies.

The company technically offers the cheapest car insurance policies in the batch, as both MotorMax and MotorMax Plus already offers great coverage and a good, credible network of car repair workshops. The main difference between MotorMax and MotorMax Plus stems on where motorists can have their car repaired, as MotorMax customers are required to have damaged vehicles repaired at accredited workshops only.

On the other hand, MotorMax Plus customers can visit other shops and still get compensated for repairs. Also, the amount provided to policy holders in case of accidents vary between the two offerings, with the MotorMax Plus customers getting more assistance.

3. AIG

AIG offers a car insurance with flexibility, with discounts for more experienced drivers and those aged above 30 years old, and those who can limit their annual car mileage to 10,000 kilometers. There is also a collision-only coverage, which compensates drivers only when accidents are borne of collision with another vehicle.

But for greater coverage, AIG has its Complete Plan, which covers everything under a collision-only coverage but also includes damage or loss of vehicle due to theft, acts of God like flood, riots, and civil commotions.

What’s better is that an additional provision for windshield and window repair is also included in the Complete Plan.

aig car insurance

4. FWD

One plus side of getting an FWD car insurance is that they assure motorists of coverage if accidents happen in some parts outside of Singapore — particularly parts of West Malaysia and areas in Thailand. Of course, their comprehensive plan has a lot benefits available — from a complimentary courtesy car when vehicles are being repaired, a 24-hour roadside assistance in case of breakdown, a lifetime 50 percent no-claim discount (NCD) protection, and a daily transport allowance.

It also boasts of its high rate of approved applications, at 98.7 percent of all requests for policies.

Even better, FWD provides legal assistance if policy holders accidentally hurt someone or damage their property, with a high legal cost coverage worth S$3,000. In case of death of both parents in an accident, the surviving children also receive a single-time payout worth S$250,000.

5. Etiqa

Etiqa prides itself in having flexible offerings — from its third party only to its comprehensive policies that you can pair with additional and customizable items. For example, customers can include — as an additional option — having their car’s sun roof covered by the car insurance plan so it can be repaired for free in case of accidents.

Among other options that Etiqa gives its customers is the freedom to pick a workshop of their choice, opt for coverage of their car’s solar film, or choose their Etiqa Plan which offers towing after loss or damage, medical and dental expenses, enhanced personal benefits, and a 24-hour roadside assistance.

Etiqa’s car insurance also caters to the young and inexperienced driver, as they can get an additional discount if they do not have any demerit for the past three years.

etiqa car insurance

6. Singlife with Aviva

While not the cheapest car insurance out there in Singapore, Singlife with Aviva’s products can be described as reasonably priced as they actually stand at par with the top of the competition. Aside from the 24/7 roadside assistance and supposedly having the lowest NCD penalty, the company also promises to keep a customers’ NCD intact if the he or she was not the cause of the accident.

The three car insurances being sold by Singlife with Aviva — Lite, Standard, and Prestige — have good coverages overall.

Lite may be the primary offering from the company, but it would already be ahead of other brands’ entry-level car insurances due to perks like a brand new car replacement policy, high coverage for medical costs, a high limit for damage to third party property, and additional excess of S$2,500 for young and inexperienced drivers. These benefits are not usually offered by the lowest-tier car insurances of other companies.

But for consumers who seek peace of mind, they can still pick between Standard and Prestige, which both have better conditions and comprehensive coverage than the Lite plan.

7. Income Drivo Car Insurance

Income Drivo Car Insurance prides itself in having the Orange Force, an in-house fleet of personnel which promises to assist policy holders during accidents. But its offerings do not stop with that: if other car insurance plans offer their NCD protector as a separate upgrade, it is free under this car insurance.

It also provides motorists simple options for choosing which plan best suites them. If their preferred workshop is accredited by Income, it would be best to pick the Drivo Classic, which allows customers to tap over 30 repair shops across Singapore.

But if their preferred workshop is not included in Income’s list, they can go for the Drivo Premium which allows policy holders to have their vehicles repaired by their own workshop.

8. HL Assurance Car Protect360

HL Assurance’s Car Protect360 insurance has the most expensive car insurance premiums in this batch, but it is also has the widest coverage, as none of the other policies included coverage for damages due to act of God, floods, strike, riots, civil disorder, coupled with an unlimited amount of coverage for death or injury to a third party.

Motorists are also given the option to have their vehicles repaired at any workshop, but a 50 percent discount on repair excess can be availed if the car is fixed with an accredited HLAS workshop.

Simply put, if you have the money to spend and are looking for assurance that you would receive assistance in case of accidents, then Car Project 360 would be one of the best car insurance plans for your vehicle.

Things to Consider Before Buying a Car Insurance

1. Budget First

It would best to check first if car insurance that is attractive to you may be practical for the long term. Is it really the best car insurance in terms of price? Did you compare car insurance prices already?

There are a myriad of other factors to consider too in the future: would you be able to pay your obligations despite the possibility of higher headline inflation rates in the near future?

Would opting for a more comprehensive motor insurance plan that is more expensive dry up your savings? These are important factors to think about when picking the car insurance that best fits you.

2. Use Comparison Sites, But Understand Their Limitations

Buyers often compare car insurance in Singapore using comparison sites, as these provide an outlook on how much, how expansive, and how good a policy is for a specific motorist. From just a few clicks, motorists can have an idea of where to get the best car insurance plan for them, and they can even get car insurance quotes online.

However, customers must also understand the many limitations it has.

For one, prices on sites that compare car insurance plans are usually tailor-made for a specific person — again stressing the point that car insurance premiums are computed not on a one-size fits all policy.

Also, there are a lot of other car insurances offered in the market which are not included by sites that compare car insurance. For this example, only eight car insurance plans were listed, but there are still a lot of companies offering competitive products.

Comparison sites are always a big help, but it would not hurt to look outside of the options they provide.

3. Do You Really Need the Widest Coverage?

Last February 2022, Channel News Asia released a story saying that according to the Singapore Police Force, the number of people who died due to accidents in 2021 increased by 28.9 percent from the year prior. Similarly, the number of people getting injured in road accidents also increased by 7.7 percent.

Some people would think this is an automatic reason to go for comprehensive car insurance, but realistically, the chances of accidents happening on Singaporean roads are still slim. Singapore remains to be a geographically small country with city roads, which means cars cannot stretch their legs and overspeed.

Unlike other Southeast Asian countries with long and winding roads that attract a lot of accidents, Singapore has well-designed streets and has one of the world’s best traffic management systems, according to several studies. With this in mind, you can assess if you really need comprehensive insurance, which is usually more expensive.

Also: Singapore’s Cheapest Brad New Cars Under S$70,000 in 2022

Final Word

Because of the hefty rates of car insurance plans in the country, it’s understandable if some people think that getting insurance for their cars is just another financial burden. But aside from it being a major requirement in owning a car in Singapore, nothing beats having the peace of mind that if something unpleasant happens on the road, you’ll have your car insurance to rely on. 

Key Takeaways

  • Age and driving experience are also key points for car insurance sellers: the longer the driving experience, then the more likely one can get cheaper car insurance. 
  • It would best to check first if car insurance that is attractive to you may be practical for the long term. Is it really the best car insurance in terms of price? Did you compare car insurance prices already?
  • Car insurance policies may also cover damages caused by the concerned motorist to other individuals and other property aside from medical expenses to the policyholder.

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