Best Car Insurance in Singapore

Best Car Insurance in Singapore

Best Car Insurance in Singapore: Top-Rated Agencies

Photo by Antoni Shkraba
WRITTEN BYLorraine Giron
PUBLISHED ONNovember 27, 2023

Driving in Singapore is greatly facilitated by the city-state’s status as a business and leisure hub, renowned for its efficient transportation systems and infrastructure development. The meticulously planned, constructed, and regularly maintained road networks in Singapore ensure smooth traffic flow and safety for drivers.

However, even with these measures in place, driving in Singapore does not completely eliminate the likelihood of accidents, damages, or theft. While third-party insurance is a legal requirement, drivers in Singapore can opt to purchase a wider range of coverage for added security.

Numerous insurance companies in Singapore provide car insurance, each offering a variety of insurance products and plans tailored to meet the diverse needs of drivers. Some of these companies also offer additional perks, such as 24-hour roadside assistance or access to preferred repair workshops, enhancing the driving experience in Singapore.

Considerations in Choosing a Car Insurance Provider in Singapore

City Intersection at Night with Light Trails
Source: Photo by Sebastian Pichler on Unsplash

Driving Experience

To determine the premium, insurers take into consideration your age, driving experience, occupation, marital status, and the make and model of the vehicle. If you’re an inexperienced driver or have a history of accidents, you may be charged with higher premiums. This is because you might be considered at a higher risk level.

When dealing with car rental agencies in Singapore, it’s important to consider your budget and specific needs. The wider the coverage and benefits offered by these agencies, the more likely you’ll be paying a higher premium for your rental car’s insurance.

Insurance Premium

Before making a decision, especially in the context of car rental in Singapore, compare quotes from various insurance companies to ensure you get the best deal that aligns with your requirements and budget constraints.

Optional Benefits

Apart from the basic protection, some popular add-ons include personal accident benefits, which provide coverage for medical expenses or loss of income in the event of an accident. Additionally, a daily transport allowance can offer temporary replacement vehicles in case of breakdowns or repairs.

Types of Car Insurance Available

1. Third-Party Only Insurance: This is the basic level of car insurance required by law. Third-party-only insurance covers the policyholder against liabilities arising from damages or injuries caused to other parties involved in an accident.

  • It is the most basic and affordable type of car insurance.
  • It fulfills the legal requirement to have insurance coverage in most countries.
  • It covers damages caused to third-party property and injuries to third parties involved in an accident.
  • It does not cover damages to your own vehicle.
  • You will be responsible for repairing or replacing your car in case of an accident.
  • It does not provide any coverage for theft or other non-accident-related damages.

2. Third-Party, Fire, and Theft Insurance: This type of insurance offers additional protection compared to third-party-only insurance. In addition to covering liabilities for damages or injuries caused to other parties, it also provides coverage for fire damage and theft of the insured vehicle.

  • It covers damages caused to third-party property and injuries to third parties involved in an accident.
  • It provides coverage for fire-related damages and theft of your vehicle.
  • It is relatively more affordable than comprehensive insurance.
  • It does not cover damages to your own vehicle caused by an accident.
  • Repairs and replacements for damages not related to fire or theft have to be paid out-of-pocket.

3. Comprehensive Car Insurance: When you opt for comprehensive coverage, you are not only insuring yourself against damages caused by accidents but you are also protected against other potential risks. This includes protection against natural disasters such as floods, hurricanes, or hailstorms, as well as fire damage and theft. Because of this wide range of benefits, expect a higher premium, but a greater peace of mind and financial security.

  • It offers the highest level of coverage for your vehicle.
  • It covers damages caused to third-party property and injuries to third parties involved in an accident.
  • It provides coverage for damages to your own vehicle, regardless of fault.
  • It may include additional benefits like roadside assistance, personal accident coverage, and coverage for overseas accidents.
  • It is typically more expensive than other types of car insurance.
  • It may have a higher excess, requiring you to pay more out-of-pocket in case of a claim
  • Some comprehensive insurance policies may have limitations on authorized repair workshops.

4. Third-Party, Fire, Theft, and Collision Insurance: This type of insurance combines the coverage provided by third-party, fire, and theft insurance with coverage for damages to the insured vehicle resulting from a collision. It offers a higher level of protection compared to regular comprehensive insurance.

  • It covers damages caused to third-party property and injuries to third parties involved in an accident.
  • It provides coverage for fire-related damages and theft of your vehicle.
  • It is relatively more affordable than comprehensive insurance.
  • It does not cover damages to your own vehicle caused by an accident.
  • Repairs and replacements for damages not related to fire or theft have to be paid out-of-pocket.

5. Pay-As-You-Drive Insurance or Usage-Based Insurance: This is a relatively new type of car insurance that takes into account your driving behavior and habits. Insurers monitor your driving patterns using telematics devices or mobile apps, and your premium is based on factors such as mileage, speed, and braking. If you are a safe driver, you may be eligible for lower premiums with this type of insurance.

  • It offers a flexible pricing structure based on your actual usage of the vehicle.
  • It incentivizes safe driving by rewarding low-mileage or low-risk drivers with lower premiums.
  • It may provide additional benefits like roadside assistance and coverage for overseas accidents.

– It requires the installation of a telematics device in your vehicle to track your driving behavior.

– Insurance premiums may increase if the device detects risky driving habits.

– It may not be cost-effective for high-mileage or high-risk drivers.

6. No-Frills Insurance: If you are seeking a more budget-friendly car insurance in Singapore, then this one is ideal for you.

  • It offers basic coverage at a lower cost compared to comprehensive insurance.
  • It fulfills the legal requirement to have insurance coverage.
  • It may still provide coverage for damages caused to third-party property and injuries to third parties involved in an accident.
  • It provides limited coverage and may not include benefits like personal accident coverage or roadside assistance.
  • Repairs and replacements for damages to your own vehicle have to be paid out-of-pocket.

7. Vintage Car Insurance: Vintage or classic car owners may opt for this specialized type of insurance. It provides coverage specifically tailored for vintage cars, including agreed value coverage, spare part replacement, and coverage for preservation and restoration costs.

What are the Best Car Insurance Providers in Singapore for 2024?

Woman Driving Car Profile View
Source: Photo by Jenny Ueberberg on Unsplash

1. AIG Car Insurance

American International Group, or AIG Asia Pacific Insurance Pte. Ltd. in Singapore, has been in the industry since 1953. As one of the largest general insurance companies in the country, AIG offers a range of products for individual and corporate clients.

Key Features

  • By purchasing its complete plan, you are protected from damage or loss caused by: accidents, fire, theft, flood, and even riots or civil commotion
  • You can expect a fast claim approval within 1 day
  • AIG Car insurance is generous with available add-ons:

AIG Car Insurance Coverage Add-ons available

  • Own Damage
  • Fire
  • Authorized Driver
  • Bodily Injury
  • Property Damage
  • AIG Authorised Workshops
  • Accidental Towing
  • Theft
  • Act of God
  • Excess Waiver of up to S$1,000 with an in-car camera footage
  • Glass roof / moon roof/ sun roof / panoramic glass roof
  • Loss of use cash compensation (up to 7 days)
  • NCD Protector* for drivers with 50% NCD
  • First claim during the policy year will not reduce NCD
  • Authorized driver extension
  • Authorized drivers within the household are extended to include any driver.
  • Canvas Top

2. MSIG Car Insurance

Key Features

  • MSIG offers two car insurance plans: MotorMax and MotorMax Plus. Check out the table below for the coverage and limits of their liabilities:

MotorMax MotorMax Plus

  • Comprehensive coverage: Market value of the insured vehicle at the time of loss or damage
    1. Unlimited coverage for death or bodily injury to any person
    2. Up to $5,000,000 coverage for damage to property
    3. Covers personal accident benefits of up to $20,000 for its policyholder
    4. Up to $10,000 each in personal accident benefits for authorized driver and/or passenger
    5. MSIG-authorized workshops only
    6. Does not cover transport allowance
    7. Does not cover new for old replacement
    8. Does not cover loan protection benefits
    9. Auto reinstatement of Windscreen
    10. 24/7 Automobile and Medical Assistance

MotorMax Plus

  • Comprehensive coverage: Market value of the insured vehicle at the time of loss or damage
    1. Unlimited coverage for death or bodily injury to any person
    2. Up to $5,000,000 coverage for damage to property
    3. Up to $100,000 personal accident benefits for the policyholder
    4. Up to $50,000 each in personal accident benefits for authorized driver and/or passenger
    5. Covers transport allowance
    6. Covers new for old replacement
    7. Covers loan protection benefits
    8. Auto reinstatement of Windscreen
    9. 24/7 Automobile and Medical Assistance
  • Other benefits include: $100,000 worth of car loan benefits to cover any outstanding car loan in case of the driver’s demise in a car accident, new car replacement, transport allowance, and quick and personalized quote

3. SingLife with Aviva Car Insurance

SingLife aims to help people of all ages achieve financial freedom. In 2022, it merged with Aviva Singapore and has garnered awards for its innovation in the insurance and fintech industry.

Key Features

  • SingLife offers three plans: Lite, Standard, and Prestige.
  • approved workshop repairs
  • a brand new car replacement
  • and a few extras: Additional Excess for young or inexperienced driver, Windscreen Excess payment, Medical expenses, Damage to third party’s property
  • repairs at any workshop
  • Brand new car replacement
  • Additional Excess for young or inexperienced drivers
  • Windscreen Excess payment
  • Medical expenses
  • Damage to third party’s property
  • Personal belongings
  • The prestige plan offers you the highest level of protection for greater peace of mind.
  • Repairs for your car
    Any repairer
  • Brand new car replacement
  • Additional Excess for young or inexperienced drivers
  • Windscreen Excess payment
  • Medical expenses
  • Damage to third party’s property
  • Personal belongings
  • Transport allowance
  • Add-ons include: No Claims Discount, courtesy car, locks & keys replacement, Additional Personal Accident cover
  • SingLife will keep your No Claims Discount (NCD) intact if you are not at fault for the damages to your car. It also claims to have the lowest NCD penalty by 10%.
  • With its Prestige Plan, young and inexperienced drivers will need not pay more in the event of an accident.
  • SingLife offers stackable promotions of up to 30%. Be sure to check out their website for deals and discounts.

4. Allianz Car Insurance

Allianz Insurance Singapore Pte. Ltd. was established in recent years to offer solutions for individuals, SMEs, and mid-sized corporations. In 2022, it received an A+ rating from S&P.

Key Features

Allianz Motor Protect offers three plans: Third-Party only, Third-Party Fire And Theft Only, and Comprehensive

Third-Party Only Third-Party Fire And Theft Only Comprehensive

  • Damage To Third-party Property
  • Death Or Injury to Third-Party
  • Legal Representation And Defense
  • Optional Cover with additional premium: No Claim Discount (NCD) Protector

Third-Party Fire And Theft Only

  • Loss Or Damage To Car By Fire And Theft Only
  • Damage To Third-party Property
  • Death Or Injury to Third-Party
  • Legal Representation And Defense
  • Optional Cover with additional premium:
    No Claim Discount (NCD) Protector
  • Loss Or Damage To Car By Accident Or Theft
  • Loss Or Damage To Car By Fire And Theft Only
  • Taxi Reimbursement
  • Towing Costs
  • Authorised Repair Limit
  • Damage To Third-party Property
  • Death Or Injury To Third-party
  • Legal Representation And Defense
  • New For Old’ Replacement Car
  • Courtesy Car
  • Daily Transport Allowance
  • 24/7 Roadside Assistance
  • Lifetime Warranty On Repairs
  • Unlimited Windscreen Cover
  • Optional Cover with additional premium:

1. No Claim Discount (NCD) Protector

2. Repairs At Any Workshop

3. Personal Accident And Medical Expenses

  • By purchasing Allianz Motor Protect, you can expect the following benefits: lifetime warranty on repairs, complimentary courtesy car, new for old replacement car, complimentary 24/7 roadside assistance, and flexible access.

5. Income Insurance Limited’s Drivo Car Insurance

Apart from its car insurance, Income Insurance Limited (Income Insurance) offers life, health, and general insurance. With innovative solutions at its core, Income Insurance Limited is one of the leading composite insurers in Singapore.

Key Features

With Drive Car Insurance, you can get the following benefits:

Benefits Coverage Enhancements

  • Reimbursement of expenses incurred for vehicle repairs arising from accident
  • Personal accident benefits and medical expenses coverage in the event of an accident
  • Coverage for third-party property damages arising from accident.
  • Coverage for towing services and unlimited windscreen cover
  • Roadside assistance and wellness cover
  • Personal accident benefits and medical expenses coverage in the event of an accident.
  • Coverage for third-party property damages arising from an accident
  • Coverage for towing services and unlimited windscreen cover
  • Roadside assistance and wellness cover
  • Premium Plan
  • Prestige Plan
  • Extension Rider
  • Daily transport allowance
  • Income also offers coverage for electric vehicles.
  • Motor Service Center: The in-house accident reporting center will assist you in accident reporting procedures, accident claims advisory and submission of private settlement forms.
  • Orange Force: Its dedicated accident response team will provide accident assistance from anywhere in Singapore

Get protected while driving in Singapore

When selecting a car insurance provider, consider coverage options, premium costs, the claims process, customer service, and additional benefits. For the best value, compare quotes, read reviews, and familiarize yourself with the policy terms. For more detailed guidance, check out our tips to acquire car insurance.

Singapore, known for its well-maintained roads, is generally a safe place to drive. However, accidents can happen unexpectedly, and having the right car insurance is essential, particularly for international drivers. So, don’t delay; take the necessary steps to secure the best car insurance in Singapore for your International Driving Permit and enjoy the freedom of exploring Merlion City with peace of mind.

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