It’s not a secret that with the growing cost of cars and the higher inflation rates, motorists are looking for less expensive car insurance policies that strike a balance between protection and cost-efficient. Given that higher-priced car insurance premiums would definitely mean more coverage, there are some offerings that would not feel too much of a compromise for car owners. The best car loans aren’t always easy to spot, but Loan Advisor will further put you in touch with the deals that best suit your circumstances.
What Is The Average Price for Car Insurance in Singapore?
According to a story published in the Singapore Business Review last 2019, Singapore’s average price for car insurance policies was just S$862, despite the city-state ranking at the top of the leaderboard in terms of car prices globally. However, that average appears to be quite tricky, as it also does not indicate the myriad of factors consider before a customer gets his or her car insurance policy.
This means it could be as high as over S$2,000 for young individuals who only have around five years of experience — and then as low as S$1,000 for those with around 10 years of driving experience. Due to these complications, we have listed some of the cheapest insurance companies, considering a male person aged above 30 with at least five years of driving experience.
7 Cheapest Car Insurance Plans in Singapore
As insurers do not issue car insurance plans on a uniform basis, the following data below was obtained based on what companies may offer to a man over 40 years old, with less than five years of driving experience but someone who has a clean traffic record, and who owns an import four-door sedan.
|Insurance company/ Annual fee||Plans offered/ Perks||Workshops||Coverage/ Excess|
|Allianz (starts at around S$1,400)|| || || |
|Singlife with Aviva (starts at around S$1,600)|| || || |
|Etiqa (Starts around S$1,800)|| || || |
|Income Drivo Car Insurance (Starts at around S$1,900)|| || || |
|MSIG (Starts at around S$1,950)|| || || |
|HL Assurance Car Protect360 (Starts at around S$1,970||– HL Assurance or HLAS offer a daily transport allowance, a 24/7 assistance in case of breakdowns, and a high medical coverage for drivers and passengers.|| || |
|FWD (Starts at around S$2,100)|| || || |
With the following data, it appears that Allianz and Singlife would be the best car insurance in terms of value for a car insurance policy holder’s money, as it has the cheapest offering among this batch but matches most of the other companies’ perks.
Meanwhile, Singlife, and Income Drivo are the best car insurance for those who have a preferred workshop as they have a car insurance plan that allows motorists to pick a repairer of their choice. If motorists are looking for 24/7 roadside assistance, they can opt for the car insurance offered by Allianz, MSIG, FWD, and HL Assurance.
Which type of car insurance is the cheapest car insurance (Singapore)?
There are many car insurances in Singapore, but these can be trimmed down into three types: the third-party-only car insurance, third-party fire and theft, and comprehensive car insurance.
Third-party only car insurances are often times the cheapest types of car insurance in Singapore because they have the least coverage for car owners. Third-party only, as the name suggests, only covers damage caused to the third party or individuals or property involved in a car insurance policy holder’s accident.
Car insurance policies covering fire and theft, on the other hand, provide additional coverage for such incidents, while the comprehensive, as the name states, has comprehensive coverage for various types of incidents outside theft and accidents.
1. Allianz – Comprehensive plan best car insurance for basic needs
- Allianz offers third-party-only car insurance in Singapore also, but comprehensive car insurance would be a good pick due to the comprehensive coverage. However, more coverage also means an additional payment, like a supplementary fee if motorists want their no claim discount (NCD) protected
- Despite the low price, Allianz matches the features of other more expensive car insurance, like having complimentary 24/7 assistance, a lifetime warranty on repairs, and a complimentary courtesy car while the damaged vehicle is being repaired
- Replacement of less than two-year-old car if the insured vehicle was declared damaged beyond repair is also possible
- For a 40-year-old man with less than five years of driving experience but someone who has a clean traffic record, and who owns an import four-door sedan, the annual fee is around S$1,400
2. Singlife with Aviva – Prestige plan which has a comprehensive coverage
- Singlife with Aviva offers three kinds of car insurances — Lite, Standard, and Prestige. But if a motorist is looking for peace of mind, Standard and Prestige are better options as both have a wider coverage
- The Lite plan, however, unlike other entry-level car insurances, already offers a brand new car replacement policy and a respectable coverage for medical expenses
- Singlife with Aviva also offers a 24/7 roadside assistance, and claims to have the lowest no claim discount (NCD) penalty while vowing to keep a customers’ no claims discount intact if he or she was not the cause of the car accident
- Despite having second-cheapest plan among the seven car insurances listed, Singlife provides a lot of perks and benefits for policyholders, like an additional excess of S$2,500 for young and inexperienced drivers
- Annual fee is around S$1,600
3. Etiqa – Comprehensive plan with flexible offerings
- Etiqa has marketed itself as car insurance provider that gives motorists flexibility, as they can pick what specific offerings would suit them. For example, Etiqa’s comprehensive plan can be paired with additional and customizable items like having sunroof covered by the car insurance so you can have it repaired in case of accidents
- Other customizable items with Etiqa is having a workshop of your choice, including your car’s solar film in the coverage, or choose their Etiqa Plan which offers towing after loss or damage, medical and dental expenses, enhanced personal benefits, and 24-hour roadside assistance.
- Another attractive perk of Etiqa’s offering is that they cater to young and inexperienced drivers, as motorists can even get an additional discount if they do not have any demerit for the past three years.
- Annual fee is around S$1,800
4. Income Drivo Car Insurance – Premium plan with free NCD protector
- If other motor insurance policies companies offer their NCD protector as a separate upgrade, Income’s Drivo Car Insurance makes this perk free, along with an emergency assistance team that is on standby for a car accident.
- Income’s Drivo Classic also allows motorists to pick from 30 accredited repair shops in Singapore, while the Drivo Premium allows policyholders to have their vehicles repaired by a workshop of their choice
- Both Drivo Premium and Drivo Classic provide compensation for lost or damaged vehicles up to the market value at the time of accident
- Income’s offerings also include having access to the services of the Orange Force, their company-owned fleet of highway emergency assistance personnel who can respond to accidents over the whole of Singapore.
- Annual fee is around S$1,900
5. MSIG – MotorMax Plus, with loan protection up to S$100,000
- MSIG is a car insurance company that has been around for quite some time now, with an A+/Stable financial rating from credit rating agency Standard and Poor’s
- Their MotorMax Plus auto insurance plan provides motorists up to S$100,000 worth of loan protection, which may be used to pay off car loans. Personal accident coverage is also at S$100,000, while S$50,000 is allocated for authorized drivers and passengers
- MotorMax Plus also allots S$50 per day transportation allowance while the damaged vehicle is being fixed and allows a new for old replacement scheme in case the insured car is written off
- MotorMax Plus policy holders can also have their car repaired at any workshop
- Annual fee is around S$1,950
6. HL Assurance Car Protect360 – Comprehensive plan with widest coverage
- HL Assurance’s Car Protect360 insurance may be the second-most expensive auto insurance plan in this batch, but it is also appears to have the widest coverage among the rest, as their comprehensive plan would automatically cover 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 also have the choice to have their damaged vehicle repaired at any workshop, but a 50 percent discount on excesses can be availed if car is repaired at accredited HLAS workshops
- Policy holders can also be compensated up to the market value of the car during the accident
- Annual fee is around S$1,970
7. FWD – Comprehensive plan with free legal cost benefits
- FWD car insurance plan probably has the widest coverage in terms of where accidents may happen, as accidents that occur in parts of West Malaysia and some areas in Thailand will be covered
- FWD’s comprehensive motor insurance plan provides a complimentary courtesy car when vehicles are being repaired, a 24-hour roadside assistance in case of breakdown, a lifetime 50 percent NCD protection, and a daily transport allowance
- It also provides legal assistance if third parties — person or property — are affected in a policy holder’s accident, with a high legal costs coverage worth up to S$3,000
- A single-time payout worth S$250,000 will also be provided for surviving children if both parents die or are permanently disabled in an accident
- Annual fee is around S$2,100
Why Get A Car Insurance
A car insurance provides a certain amount of financial compensation for damages that may have resulted from an accident involving a car. By paying a specific amount annually either separate or conjoined with car purchases, motorists have a backup plan in case things go awry after an incident on the road.
Car insurances are actually compulsory for any person owning a car in Singapore, as it is illegal to drive a car on the city-state’s roads without one. OneMotoring’s website, which is owned by the Singaporean government, says motorists who violate this rule may be fined up to S$1,000.
Drivers who insist on driving cars without insurance can also face prison time of up to three months and disqualification from holding a driver’s license for 12 months.
Other Things You Need to Know About the Car Insurance Policies in Singapore
1. What is the lowest-priced insurance plan?
If you look at the table, one can say that the following insurance plans are actually pricey, considering that one of the cheap car insurance on the list — that from Allianz — is already at S$1,400 annually or around S$117 per month. However, it is worth noting that insurance premiums are not a one-size-fits-all scheme, as the prices of policies differ from one driver to another.
Naturally, the lowest-priced insurance plans are the third-party-only offerings, which have the least amount of coverage. But as noted above, there are cases where comprehensive car insurances are cheaper than third-party-only car insurances, especially when two different persons are applying. For example, for a person aged above 30 with at least five years of driving experience, Allianz’ car insurance would cost just around S$850.
2. Can I get a lower rate on my insurance?
Most of the time, insurance offerings are fixed unless the company itself offers a discount or a promo by the time a car owner applies for one. That being said, there are companies that offer lower insurance premiums to drivers with no records of accidents or past claims.
Having a good credit rating is also key, as insurers would look at your capacity to pay off the monthly dues.
There are some offerings, on the other hand, that do not provide discounts but gives away benefits like a discount on repairs, fuel vouchers, and other items that a motorist may need in the future.
3. Who typically has the cheapest car insurance
As mentioned above, drivers with a clean record, coupled with a longer driving experience, can get cheaper car insurance premiums. Age is also a factor, as insurers charge more on young and old due to the higher probability of accidents happening with vulnerable drivers.
4. Is it cheaper to go to the insurance company directly?
It depends: Some financial experts discourage customers from visiting sites that compare car insurance plans as offerings may have hidden costs — or expenses that an applicant would need to pay but are not shown in the comparison site. However, there are instances also that comparison sites offer huge discounts when car insurance is applied through them, especially if it is a sponsored deal.
Comparison sites usually provide just a few insurance companies as an example, which means that there may be other offerings in the market that is as competitive as the others but were not included. That being said, going from one insurance shop to another is usually painstaking and time-consuming, compared to being able to browse and compare car insurance.
In addition, comparison sites also provide car insurance quotes online, saving people from the hassle of making phone calls or visiting several insurance shops. This means you can compare car insurance quotes and pick the cheapest car insurance plans without leaving your home.
Picking the right car insurance for you would be a huge task, as there are many things to consider, like expenses, coverage, and the risk of accidents. You may be attracted to particular car insurance, but it would be best to examine your pick several times to be sure that the plan fits your needs and capabilities.
It is also important to take note of the following matters:
- Comprehensive car insurances do not differ much despite the price, but as you go up the price scale, more benefits and perks are available, like in the case of FWD’s offering, which is the most expensive in the list — but provides high legal costs coverage and a S$250,000 one-time payment to surviving children if their parents die.
- It may seem simple, but customers should also consider whether they are okay with having their car fixed at an insurer’s accredited workshop or if they prefer a different repairer.
- While it is best to go directly to car insurance companies to get a full view of their plans, comparison sites can be of help, especially if a customer is under time constraints.
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