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All You Need To Know About Motor Insurance Policies in Singapore

Before you start driving your vehicle, you must have a valid motor insurance policy to cover third-party liability for bodily injury and deaths. It is compulsory for all vehicles in Singapore to be insured for the whole road tax renewal period.

With so many motor insurance policies available, how do you go about choosing the one best suited for you? Fret not, for we will guide you through the various motor insurance policies available and what to look out for.

What are the best motor insurance policies available?

Depending on your needs, there are different motor insurance policies available. To help you in your decision-making process, we’ve broken down the best motor insurance policies based on budget, roadside assistance, comprehensiveness, and for the latest electric cars (EVs).

Budget

InsurerKey FeaturesGreat for
AIG AutoPlan/ AutoPlus● 24/7 roadside assistance
● Lifetime warranty on repairs
● Need for 24/7 assistance
Allianz Motor Protect● 24/7 roadside assistance
● New for old replacement car if your vehicle is irreparable (for new cars up to 2 years old)
● Lifetime warranty on repairs
● Complimentary courtesy car
● Budget conscious
● Need for 24/7 assistance
● Comprehensive coverage
China taiping● Free NCD Protection benefit with 10% NCD and above.
● $50,000 worth of car loan protection for any outstanding car loan if the policyholder passes on in a car accident
● Personal accident coverage for up to S$50,000
● Budget conscious
DirectAsia● 24/7 roadside assistance
● Get an extra 10% NCD if you’ve held 50% NCD for at least the last five consecutive years
● New for old replacement car if your vehicle is irreparable (for new cars up to 3 years old)
● Budget conscious
● Need for 24/7 assistance
FWD● 24/7 roadside assistance
● 50% NCD guarantee if you stay with FWD
● Complimentary courtesy car
● Need for 24/7 assistance
Singlife with Aviva● 24/7 accident assistance
● No additional excess for young and inexperienced drivers
● New for old replacement in the event your vehicle becomes irreparable after an accident (for new cars)
● No Claims Discount (NCD) remains intact without upfront excess payment, if the vehicle is damaged through no fault of yours
● Lowest 10% NCD penalty upon motor insurance claims, opposed to the 30% market rate
● Need for 24/7 assistance
MSIG Motor / MotorMax Plus● 24/7 roadside assistance
● New for old replacement car if your vehicle is irreparable (for new cars up to 1 years old)
S$100,000 worth of car loan protection for outstanding car loan if the policyholder passes on in a car accident
● NCD protector
● Budget conscious
● Need for 24/7 assistance
● Comprehensive coverage
NTUC Income Drivo● Roadside assistance
● Dedicated motor service centre
● 24/7 hotline for road and medical assistance in West Malaysia
● Personal accident coverage for up to S$60,000
● Covers up to S$1,000 for cosmetic reconstructive surgery benefit caused by accidents
● NCD protector
● Budget conscious
● Comprehensive coverage
Singtel Car Protect (Underwritten by Great eastern)● 24-hour towing helpline for accidents
● Personal accident coverage for up to S$120,000 for the main driver and S$50,000 for passengers in the event of an accident
● Budget conscious

Car Insurance for Electric cars (EVs)

InsurerFeatures
NTUC Income – Drivo
● Provides coverage for 11 different makes of EVs, including Tesla, BMW, Nissan, Honda, Hyundai, Audi, KIA, Renault, MG, BYD, and Mini
Liberty Insurance
● Known as the preferred insurer for Teslas owned in Singapore
Allianz Electric Motor Protect
(No direct purchase, a quotation is needed from Allianz Financial Advisors)
● Comprehensive coverage for all EVs
● Private electric car charging station is covered against external damages
● 24/7 roadside assistance

What are the types of motor insurance policies available?

There are three types of motor insurance policies available in Singapore, and they are:

  1. Third-Party Only (TPO)
  2. Third-Party, Fire and Theft (TPFT)
  3. Comprehensive

1.   Third-Party Only (TPO)

The Third-Party Only (TPO) policy provides you with the most basic form of motor insurance coverage. It protects the affected third-parties such as damaged guardrails or an injured pedestrian in the event that an accident has been proven to be your fault. In other words, the TPO is a liability coverage to protect third-parties, instead of you and your vehicle. Therefore, you will not receive any pay-outs from the insurer if you purchase a TPO policy.

TPO is generally recommended for vehicles reaching the end of their statutory lifespan, since the car owner would usually consider scrapping the car instead of repairing it.

2.   Third-Party, Fire and Theft (TPFT)

Similar to TPO, Third-Party, Fire and Theft (TPFT) policy also provides liability coverage. On top of that, TPFT covers any damage or loss caused by fire or theft. However, other reasons (such as damage caused to your vehicle as a result of your own driving) that have indirectly led to damage or loss to your insured vehicle will not be covered. It is also generally a considered option for older cars.

3.   Comprehensive

As its name suggests, this policy is the most comprehensive kind of motor insurance you can get. It includes what Third Party Fire and Theft covers, and coverage for repairs or replacement required for accidental damages to your own vehicle. This covers your liabilities as well.

Depending on your chosen policy, there might also be extra features including personal accident coverage for the driver, a courtesy vehicle while your vehicle is undergoing repairs, windscreen replacement coverage, 24-hour roadside assistance during breakdowns, and many more.

What are the main things you should look out for when you purchase a motor insurance?

When it comes to selecting a motor insurance policy, here are some of the main factors you should bear in mind:

1.   Excess you are willing to fork out

An excess is the maximum amount of money paid out of pocket during a claim. However, the excess is only given in the event that you are at fault. For instance, if your motor insurance policy excess is S$1,000 and your claim is for S$3,000, you will only have to fork out S$1,000 while your insurer pays the remaining S$2,000. The amount you are willing to pay out of pocket for the excess will affect your choice of motor insurance.

Typically, a higher excess will lower the insurance premiums since you are expected to bear higher costs in the unfortunate event of an accident.

2.   Choices of workshops

Most motor insurance policies recommend that you get your vehicle repaired at one of their many authorised workshops. These workshops are deemed reliable and can assure both you and the insurer of its price and quality.

However, if you prefer to get your vehicle repaired at workshops of your choice, you will have to look for a plan with this option. Generally, you can expect a higher premium imposed on motor insurance policies that allow for repairs at any workshop.

What are the secondary things you should look out for when you purchase a motor insurance?

Other than the main factors, these secondary factors also play an important role.

1.   Roadside assistance

Would you prefer to have 24/7 roadside assistance in the event of an accident? If so, look out for motor insurance policies with this option. This is especially helpful for inexperienced drivers who need assistance during an accident.

2.   Overseas coverage

Do you often drive in and out of Malaysia? If so, you should opt for a policy that provides overseas coverage. However, bear in mind that most insurers provide coverage for the standard geographical areas including West Malaysia and Southern Thailand.

3.   Named driver

Other than yourself, will anyone else be driving your vehicle? If the answer is yes, consider including a ‘named driver’ to your policy, so the other driver will also be insured when driving your vehicle. This additional driver will typically enjoy the same coverage as the primary driver, at an extra cost.

For maximum protection, you can always include more named drivers. However, this will cost you more, especially if your additional driver is young and inexperienced.

How is my premium calculated?

When calculating your premium, many insurers adopt a risk factor rating system. The risk factor rating system considers your premium based on factors, rather than the price you paid for your vehicle or your vehicle’s value.

The risk factors that are taken into account include:

  • Driver(s) profile
  • Vehicle profile
  • Vehicle usage (private/ commercial/ corporate use)
  • Claims history
  • Coverage type
  • In the event that you have an impending claim against you, the insurer may charge a higher premium. However, you can file for a possible refund if you are not deemed liable for the impending claim.

How do I apply for motor insurance?

Applying for motor insurance is easy with Planner Bee. Simply follow these three steps:

Step 1

Reach out to Planner Bee via WhatsApp or email, and send us your details and needs.

Step 2

Get quotations for the different motor insurance policies available. You can then discuss your available options with our specialists.

Step 3

Apply for your desired motor insurance policy, and proceed with your purchase via WhatsApp and email.

Drive with peace of mind

Motor insurance is important as it provides coverage for personal injury that you may inflict on third parties, loss or damage during an accident, and other costs if you damage someone else’s property.

With motor insurance, you can drive worry-free, knowing that you are well protected. In the event that you need to file a claim, rest assured you’re in good hands – we have a dedicated team at Planner Bee to attend your needs and provide assistance with your claims.

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