Navigating the complex landscape of car insurance in Singapore requires a keen understanding of both the costs and benefits associated with various plans. In this analysis, we’ve scrutinized multiple insurance providers to offer you a comprehensive overview of your options. Here’s a breakdown of some of the most prominent insurance plans available, helping you make an informed decision tailored to your specific needs and budget.
Allianz Motor Protect: Affordable Comprehensive Coverage
Starting at S$865.05, Allianz Motor Protect stands out for its budget-friendly yet comprehensive coverage. With flexible excess options and a unique “Agreed Value Payout at Total Loss” benefit, this plan caters to individuals seeking economical coverage without compromising on essential features.
Etiqa Comprehensive: Tailored Excess Options
Etiqa Comprehensive, starting from S$835.26, offers the flexibility of choosing your excess level, allowing you to align your premiums with your financial comfort zone. This plan also stands out with lower vulnerable driver excess, translating to potential savings and making it an attractive option for those who prefer customizable plans.
Singlife Lite: Affordable Option for Young Drivers
Priced at S$1,311.58, Singlife Lite offers competitive premiums, particularly benefiting young and inexperienced drivers. With waived excesses for windshield repairs and drivers falling into these categories, immediate savings are ensured in case of accidents. Additionally, the reduced NCD deduction of only 10% for ‘at-fault’ claims helps you save money and maintain your NCD discount more easily.
NTUC Drivo: Popular Choice with Loyalty Benefits
NTUC Drivo, starting from S$1,935, is a popular choice in Singapore. Its comprehensive coverage, reasonable premiums, and competitive benefits make it a favorite among drivers. Moreover, loyalty to NTUC can lead to additional savings, including a free NCD protector after two consecutive years of 50% NCD, further reducing your premiums.
FWD: Best Value Comprehensive Coverage
FWD, priced from S$2,138, offers extensive coverage with competitive benefits. While it has slightly higher premiums, the marginal difference translates to just S$14 more per month than the closest competitor. FWD stands out with substantial legal cost coverage and a unique one-time payout of S$250,000 for surviving children if both parents are involved in a car accident, providing valuable additional protection.
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Each option presents a balance between affordability and comprehensive benefits, ensuring that you can find a plan tailored to your specific requirements and financial considerations. Remember to carefully assess your needs and preferences before making a decision, ensuring that you select a plan that offers the right coverage for your unique situation.
Unlike practically everything else in the world (even vehicles!) where it’s quite straightforward to comparison-shop for the cheapest costs, car insurance is a hard one since pricing for premiums are provided on a case-by-case basis. On top of that, not every insurance would divulge their costs easily or offer you a price online.
When it comes time to renew or get auto insurance, it makes perfect sense to use free internet resources to compare rates.
In Singapore, How Much Does It Cost To Insure a Car?
Your yearly auto insurance premium is computed on an individual case-by-case basis. In general, insurers attempt to determine how probable it is that you will be involved in an accident and how expensive it will be for them to cover the costs (i.e., the risk they assume).
How Can I Get the Best Deal on Auto Insurance?
It’s impossible to alter one’s driving history, driving record, or automobile. You may, however, search around to find the greatest deal for your specific profile and vehicle. To begin, obtain insurance estimates from at least five or six different firms. With the help of MoneySmart’s Car Insurance Wizard, you can easily obtain this information.
Insuring your vehicle should not be as inexpensive as it appears. Cheap insurance is worse than having no insurance since you’re wasting your money and putting yourself at risk.
High excess (the amount you must pay ahead before the insurer begins to pay for the remainder) and/or terrible terms & conditions (i.e. you can’t claim crap since EVERYTHING is excluded) are often associated with cheap rates. Check the fine print of your policy to make certain you’ll receive the protection you desire.
Directly Through an Insurance or Through a Broker, Which Should I Choose?
Keep in mind that rival insurers may offer lower rates to attract new clients. After all, our auto insurance specialists will perform the comparison for you while you rest and enjoy your time off. In the event that your current insurance provider offers a better bargain, at least you won’t have to worry about missing out on a better deal.
You may, of course, get automobile insurance on your own if you don’t mind going over the tiny print and checking out the facts.
Various Kinds of Car Insurance to Consider
Comprehensive Car Insurance
This sort of auto insurance, as the name indicates, covers practically everything, even the expense of repairing or replacing your own vehicle. This sort of insurance is the most frequent in Singapore because of the high cost of automobiles here.
Third Party Only (Tpo) Car Insurance
This is the most basic and least expensive sort of insurance since it only covers damage to the property of others. You’ll be on the hook for repairs to your own vehicle if something goes wrong with it. Most experts advise against attempting to fix a really old automobile that has reached the end of its COE lifetime.
Third Party, Fire & Theft (Tpft) Car Insurance
An enhanced form of TPO vehicle insurance. Except that TPFT also covers your automobile for loss, theft, and fire damage. Despite the fact that it provides a little extra security, this is typically just an option for drivers of older vehicles.
Most insurance companies in Singapore use a $500 or $600 deductible as a baseline for their estimates. The average amount that automobile owners are prepared to spend out of their own money may be derived from this figure. When comparing auto insurance rates, it’s important to consider both the premiums and the excess. If you choose a high excess, you can save money on your premium, but are you really willing to pay $2,000 if you are involved in an accident? It’s probably not going to happen.
The biggest mistake that you can make when it comes to car insurance is not having any at all. Purchasing the first insurance policy that you find is often not the best idea either. Car insurance is an expense that you have to pay if you own a car and because of this you should make sure that you choose a policy not just based on price, but also on your needs as well. Here are some of the common mistakes that people make when they are purchasing car insurance.
Types of Coverage Needed
There is a minimum coverage necessary provided by the government. While it may seem like a good idea to just purchase the minimum amount of car insurance needed and be done, this is not necessarily the best idea. Every person has unique needs when it comes to protection and the needs depend on factors such as the type of car you drive, experience, how often you drive, and the weather and driving conditions where you live.
Full coverage would be ideal for everyone, but the cost is very high. The best option is to choose coverage that balances the coverage with the cost. Consult with your agent about what type of policy will be right for your needs.
Many people simply find an insurance company and go with them. This is a mistake as you should shop around and find the best rate. When you get options from several companies you are going to be able to make a car insurance comparison in Singapore for the coverage that you get for the price you will have to pay. This is the best way to make sure that you are not overpaying for car insurance.
Lying on Application
Another mistake that people make is not telling the truth on the insurance application. Your insurance company is going to have access to your driving records so there is no reason to lie. A company can refuse coverage if they find too many inconsistencies, so make sure that you are telling the truth.
Many people do not choose the right amount for their deductible. A lower deductible will mean that you pay more for the policy, but if you are in an accident you will not have to pay as much out of pocket. Higher deductibles mean lower premiums, but you will pay more if you are in an accident. Make sure that you choose an amount for your deductible that you can afford to pay if you are in an accident.
Another mistake that people make is simply not researching insurance policies online. There are many great comparison sites that will provide you with information from several insurance companies all right on one page. This is the easiest way to find the best price for the type of coverage that you need.
Just like you can purchase too little insurance you can also buy too much. If you have a car that is old and not worth much, you do not likely need to pay for a comprehensive insurance plan. If you purchase this type of plan you are going to be paying a lot of money for coverage that you simply do not need. Make sure that you think about how much you can afford to pay if you are in an accident and choose the right amount of coverage for the type of vehicle that you drive.
The most important thing that you can do when you are searching for car insurance is to make sure that you ask questions. If you do not understand something, make sure that you ask about it. Do not let an insurance agent talk you into coverage that you simply do not need. Remember to consider the deductible as a way to lower the cost of your insurance overall as well. Know what your budget is and try to get a policy that is within that range.
Overall, make sure that you take your time when you are searching for car insurance and ask any questions that may arise. If you do this you should have no problem getting a quality car insurance policy that is affordable.
Whatever your reason may be for buying yourself a car, you should take out car insurance immediately afterward. After all, you wouldn’t want to face legal repercussions for driving without any car insurance. But if it’s your first time to purchase car insurance, it’s easy to do it wrong, especially with so many insurance companies out there offering protection for both your car and your finances. To make taking out car insurance easier for you, here are some key tips to consider:
1. The state where you’re residing would require you to purchase third party cover as a bare minimum
There’s no telling at all when your car might accidentally hit a person or a piece of property no matter how defensive you are with your driving. The person your car hit might get injured or even die. The piece of property that your car had crashed into might become unusable or beyond repair.
Worse, the entire balance of your savings account might not be enough to cover the medical or funeral costs of the person that your car had hit. It might also not be enough to cover the repair or replacement costs of the property that your car has damaged. As a result, most states would require you to buy third party cover as part of the car insurance that you’ll be taking out from your chosen provider.
Unfortunately, third party cover won’t be able to shoulder any damages that your car had sustained as it only covers costs associated with a person or piece of property that your car had hit.
While not a state requirement, you might want to purchase comprehensive cover as well.
On the other hand, if you want any damages that your car had sustained shouldered by your chosen insurance provider, you should buy comprehensive cover instead. This will help with any repair costs associated with your damaged car.
Your car insurance’s comprehensive cover can also act as a third-party cover since the former allows for a wider coverage compared to the latter as evident in its name. The said type of cover can also shoulder you financially in case your car is consumed by fire, stolen, or hijacked.
You might want to include some extra features on top of the car insurance that you’re planning to take out.
Having a third party or comprehensive cover might not be enough once you take out car insurance as it might not sufficiently cover any highly specific damages that your car may sustain at any given time. Thus, you might want to have some extra car insurance features so that you can still get protected no matter what unfortunate situation might happen to your car. Some of those additional features that you can consider including in your car insurance are as follows:
Windscreen cover – useful for when your car’s windshield, side windows, or rear window gets broken or cracked, and you want to recover the cost of having any of them either repaired or fully replaced
Fire and theft cover – as the name implies, useful in case your car either gets burnt to a crisp by fire, stolen by burglars, or hijacked and you haven’t taken out comprehensive cover as part of your car insurance policy
Zero depreciation cover – aims to add value to your car insurance’s comprehensive cover by excluding costs associated with your car’s depreciation in value due to age, wear and tear, etc.
You might want to consider looking into other types of car insurance coverage as well.
As both third party and comprehensive cover of your car insurance might not be enough to help you financially, you might want to consider including the following additional types of car insurance coverage in your car insurance:
Collision coverage – covers repair costs associated with your car after you’ve gotten involved in an accident with another driver regardless if the said incident was your fault or theirs, though you’ll want to add this one only if you’ve bought your car new and not used
Uninsured and underinsured motorist protection – useful if an uninsured or underinsured driver had hit your car since they’re unable to pay any repair costs associated with it but you wouldn’t want to pay those costs out of your pocket at the same time
Personal injury protection – Pays for all medical expenses and lost wages that you or any passengers that you’ve brought along with you in your car would incur after you’ve gotten involved in an accident
The amount of your car insurance premiums depends on the amount of risk that you’re posing to your chosen insurance provider.
Your car insurance premium is the amount of money that you’ll have to pay for the car insurance that you’ll be taking out from your chosen provider. How much your car insurance premium will amount to is proportional to the degree of risk that you’re carrying with you as a driver.
Your chosen car insurance provider would gather information about you including but not limited to your age, criminal record, and residence’s location to determine the degree of risk that you’re posing to them. The higher the risk that you’re posing to your chosen provider, the more expensive your car insurance premium would get.
Thus, if you want to pay an affordable car insurance premium amount, you’ll have to lessen your degree of risk.
Ask your chosen provider if the car insurance would cover you in certain situations other than driving your car or not.
There might be some situations where your car had gotten involved in an accident, but you weren’t the one behind the wheel at the time when the incident had occurred. Or you might have been driving somebody else’s car or a rental vehicle when you’ve gotten involved in an accident.
In cases such as this make sure the provider covers this prior to taking out the insurance to make sure you’re fully covered.
Pay your car insurance premium either as a lump sum or in installments depending on how much money you’re willing to give to your chosen provider.
As already mentioned earlier, the money that you’ll pay is known as a premium. You can pay your car insurance premium in one go covering an entire year and even get a discount from your chosen provider while at it. But if that’s too heavy of a financial burden to you, you can pay your car insurance premium in two, four, or 12 installments instead. However, you should take note that the higher the number of installments, the higher the additional fees that you’ll have to pay as well aside from your car insurance premium amount.
When the policy period expires, they’ll automatically renew it unless it isn’t eligible for renewal anymore.
Right now, there’s no such thing as multi-year car insurance. In fact, the longest car insurance policy period is only a year followed by six months and one month. However, car insurance with a policy period of only one month is usually reserved by providers only for those drivers that they’ve assessed as high-risk. Thus, the car insurance that you’ll be taking out from your chosen provider may have a policy period of either six months or one year.
Once your car insurance’s policy period comes to an end, your provider would automatically renew it, especially as your car insurance is most likely to have an auto-renewal clause included in it. But if your provider didn’t automatically renew your car insurance’s policy period either because you’ve become a high-risk driver or you’ve moved to a different state, you’ll have to take out car insurance from another provider instead.
In its fundamental form, insurance is a contract that enables individuals or entities to receive financial protection against losses. It ensures the stability of families and businesses after a crisis or other unfortunate events. Simply put, insurance grants policyholders a peace of mind. Isn’t that what everybody wants – to be able to sleep at night without having to worry about what the future holds?
These are the reasons why I am drawn to getting insurance policies. I have to be completely honest. One of the major drawbacks that I dislike about insurance is its complexity. I am apprehensive about the piles of questions and bulky documents. Do not get me started about the confusing technical terms!
To my delight, I was introduced to a revolutionary insurance company that dances gracefully with the modern tides. This was none other than FWD Insurance. FWD Insurance aims to transform the way that Singaporeans experience insurance by simplifying the purchase and claims process. It helps you to skip the agent by directly working with them online.
Say goodbye to nerve-wracking call backs and time-consuming interrogations by embracing their user-friendly website!
FWD Insurance understands how valuable a working Singaporean’s time and money is. This is why the company maximizes these two commodities through providing insurance quotations under 60 seconds for car insurance and 10 seconds for travel insurance. These impressive figures are due to the fact that FWD only asks questions that are absolutely necessary.
For instance, it took me 25 seconds to be quoted with the premium of about S$174 for a DIRECT-Term Life insurance that seeks to cover 5 years of my life. I used the rest of my day to focus on other productive matters. You can do the same thing too!
The people behind FWD best explained the company’s concept: “We believe that insurance doesn’t need to be complex, sold through middlemen, or take up vast amounts of your time.” It offers competitive prices and easy-to-understand insurance.
Attractive Insurance Products
It is usual for people to feel skeptical when they encounter an insurance company for the first time. Wash away this feeling by knowing that you are supported by a company with a strong financial record. FWD is the insurance business arm of the established investment group, Pacific Century Group (PCG).
Choose from the four secure insurance products such as DIRECT-Term Life Insurance. Car, Travel and Personal Accident.
A. DIRECT-TERM LIFE INSURANCE
The DIRECT-Term Life insurance ensures that your family’s financial future is secured despite unfortunate events such as becoming diagnosed with a critical illness, becoming permanently disabled, or passing away.
These are the primary reasons why I am drawn to this policy:
I can choose the period that works for my budget and lifestyle (e.g., 5 or 20 years).
I can purchase coverage through my smartphone – without going through a middleman.
Because FWD does not pay commission to agents, my coverage of up to S$400,000 may cost less than S$1/day.
B. CAR INSURANCE
Three comprehensive plans cover vehicle repairs, third-party damages, medical expenses, and roadside assistance. These plans were crafted to suit your personal needs and budgets.
No matter what plan you avail, your repairs will be completed by the FWD workshops. You can cruise along blissfully until your car turns ten. Furthermore, your 50% NCD is guaranteed for lifetime. NCD stands for no-claim discount. Drivers who have earned their 50% NCD get to keep it for life because they believe that one accident doesn’t make you a bad driver.
On top of that, you can add amazing features which gives you coverage when you are driving in West Malaysia and certain parts of Thailand.
C. TRAVEL INSURANCE
Take for instance; to reap the rewards of her hard work, Jena scheduled a weeklong vacation to Thailand. The beautiful country has so much to offer from pristine beaches to established sports clubs. She did not forget to pack her favorite S$200 golf putter. To enjoy a fuss-free tropical getaway, she purchased FWD’s travel insurance. It was one of the best decisions she ever made as the putter got lost in the airport and fortunately, sports equipment is covered by the policy.
Aside from sports equipment, the travel insurance also includes unlimited medical evacuation. You read that right! The last thing on your mind is how much your emergency evacuation will cost. This is why FWD has thought of this for you.
You can expect the claiming process to be a breeze too. Claim with a few clicks with the “Click to Claim” feature. This means, all you have to do is snap your boarding pass and claim for flight delays via WhatsApp. This feature is available for baggage delays too. Simply take a photo of your baggage slip and send it to FWD via WhatsApp. That is convenience at its finest!
D. PERSONAL ACCIDENT INSURANCE
Personal Accident (PA) insurance provides compensation in the event of disability, injuries or death. In fact, one feature unique to FWD is that the policy also covers the most number of infectious diseases including Zika and dengue fever. Under this policy is the Guardian Angel Benefit. If both parents pass away or become permanently disabled due to an accident, FWD will provide up to S$500,000 for the surviving children.
Lastly, natural circumstances now cannot stop you from having fun as ticketed event cancellations due to haze are covered. Apparently, they are the only insurer in Singapore to offer this.
Irresistible Features and Highlights
Before you make a commitment, it is important to know what this new insurer can do. Let me start by stating the fact that there are no middlemen or agents. Since you do not have to pay for commissions, you can save more money.
FWD allows you to complete your purchases online. It is so quick and easy to complete the online quotation that even your 9-year old niece can do it for you! As soon as you make your purchase, you will get an email with the policy. You will also receive an SMS that notifies you to check your email.
Lastly, the policies are delivered with no technical terms. You will know exactly what you will get explained in plain English.
From now till 31 January 2017, you can now enjoy a 10% discount on all FWD insurance products with this promo code – FWDHi10.
For the people behind FWD, customers are at the heart of the entire process. They let you experience exceptional insurance by minimizing your effort and making products readily accessible. May they change the way you feel about insurance!