Car Insurance 101

Motor insurance in Singapore is compulsory for all vehicles. You need to prove that you have valid insurance coverage every time you renew your road tax. The cost of motor insurance varies on the type of car you drive and the type of insurance you choose:

Third Party Coverage
This policy covers the driver's legal liability for damage to property belonging to other persons such as cars; fences; street lighting etc. It also includes the driver's legal liability for death of or bodily injury to passengers and third parties caused by his negligence. This is normally the cheapest policy as it provides the least coverage. This is available only for owners who are not financing their cars anymore.

Third Party, Fire and Theft
In addition to the Third Party Coverage mentioned above, this policy is extended to include accidental loss or damage by fire and/or theft of the vehicle. This is slightly more expensive as compared with the third party policy. This insurance is compulsory for owners who are still financing their cars.

Comprehensive Cover
This offers the widest coverage and includes all the above mentioned covers plus accidental damage to the insured's own vehicle, accessories and spare parts arising in Singapore, West Malaysia and that part of Thailand within 50 miles of the border between Thailand and West Malaysia. The additional cover provides personal accident benefits for the driver and medical expenses arising from the motor accident. Although the term "comprehensive" is used, the standard comprehensive cover does not include losses arising from riots, strikes and civil commotions, floods and windstorms. It also does not cover personal accident benefits for passengers and liability of passengers for acts of negligence. Comprehensive insurance cover is not available for cars which are more than 10 years old. Owners are required to get comprehensive insurance cover if their cars are less than 10 years old and are still under financing.