Car Insurance in Singapore — Different Kinds of Coverage

While searching for car insurance in Singapore, you will encounter different coverage options that may confuse you. However motor insurance is not complicated as long as you know the essentials. In Singapore, there are 3 types of auto insurance coverage you can choose from. They are the comprehensive coverage, the third-party fire & theft and the third-party only policy. As we get deeper into each of these types of car insurance, their characteristics will be clearer to you.

1. Comprehensive coverage. This gives the broadest protection for vehicle owners in Singapore. It covers the entire scope of the third-party fire & theft insurance, and also pays for the insured’s liabilities. Some of these liabilities include bodily injury, death and property damage to a third-party. The comprehensive coverage also insures your own car against damages.

2. Third-party fire and theft. This kind of policy covers the full scope of the third-party only motor insurance as well as damages arising from fire and/or theft. Therefore the insurance coverage will also include compensation for death and bodily injuries as well as property damage.

3. Third-party only. This insurance coverage compensates only for death or bodily injuries to the other party. It also pays for damages to property that belongs to a third-party. The pay-out from your insurance policy will only take effect if it’s proven that you’re the driver at fault.

However not every car owner is able to insure their car under third-party only coverage. If your car is bought under hire-purchase, your financial institution will require you to insure your car under comprehensive policy. This is almost always without exception. The reason for this is to ensure that car owners maintain financial responsibility to the finance company in the event of a significant (or total) loss.

Similarly, insurance companies in Singapore will also require you to furnish them with evidence that your car has been fully paid up or evidence that your financial institution has permitted you to insure your vehicle under third-party only coverage before the third-party only policy can be issued to you.

On top of the basic coverage, there are several rider insurance under the comprehensive coverage that can cater to your needs. Some of these include the no-claim discount (NCD) protector, the additional personal insurance cover as well as the second driver coverage. There are of course many other options that can be added to your original policy. The above 3 are just what’s most popular.

These information are essentials that you have to get acquainted with in order to get a suitable motor insurance for your vehicle. It can also protect you from unprofessional agents whose sole intention is to get your business by providing you with false, misleading information.

Finally, before you put your signature on the dotted line, remember to check that your requested type of insurance and its scope of coverage is indeed what you’re signing for. When in doubt, always ask a car insurance professional to explain to you the terms that you’re still grabbling with so you know what you are purchasing.

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