5 best car insurance plans in Singapore (2021)

It is compulsory to have your car insured in Singapore. Why not make the most of it by looking for the best car insurance plan in town when your policy is up for renewal?

While it can be tempting to simply renew your existing car insurance plan and get that chore out of the way, you might be missing out on a better deal out there. 

For a start, you might get a much cheaper car insurance premium with another insurer. (You’ll need to get a quotation online, because insurance premiums depend on the driver’s profile and car make and model.)

These days, many car insurance plans come with great features that cater to different needs, be it personal roadside assistance, young driver coverage, or a long list of conveniently-located workshops. Don’t miss out on those, either.

Here are the best car insurance plans in Singapore so you can see how your current plan stacks up. For easy comparison, we’ll be covering each insurer’s comprehensive plans only.

Best car insurance in Singapore (2021)

*Indicative annual premium for a 35-year-old married male driver with clean driving record, five years of driving experience and 50 per cent NCD, driving a Mazda 3 1.6 (A) registered in 2018

1. MSIG car insurance — MotorMax

Why it’s good: MSIG is one of the longer-standing insurance companies in Singapore for car insurance, and it has a well-built-up network of over 30 authorised workshops. More conservative, brand-conscious drivers would want to consider this provider.

Apart from a solid reputation, we also like that MSIG offers a car loan protection benefit. If the car owner passes away, MSIG will pay off the loan so that the surviving family does not have to worry about the debt. Given that cars are so expensive in Singapore, this feature is definitely nice to have.

What plans are available: MSIG has two comprehensive car insurance plans: MotorMax and MotorMax Plus. 

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The main difference between them is workshop policy. For those who drive an older car that’s not under warranty, the cheaper MotorMax plan should be sufficient as there are over 30 authorised workshops islandwide. 

You would need to opt for the more expensive MotorMax Plus to get benefits like loan protection, transport allowance and replacement car.

Available promotions: MSIG loses out to its competitors in terms of promotions and discount schemes. But since premiums vary with your profile and car, there’s no harm getting a free quote online to see how much it would cost.

Annual premium: From $862.38 (based on driver profile and car above)

2. Etiqa (Tiq) car insurance

Why it’s good: Etiqa (also known as Tiq) prides itself as a digital insurer, so you can expect a quick and painless buying experience. They’ve even minimised the hassle around claims.

Just submit your repair claim of up to $5,000 online (only applicable for ‘own damage’ claims), and Etiqa can verify and pay it out in as little as 30 minutes.

Like Aviva, Etiqa’s threshold for ‘young and inexperienced driver’ is 24 years old, which is good news for drivers in their 20s.

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What plans are available: Etiqa has just the one comprehensive car insurance plan. It comes with the standard accident, personal accident and liability coverage, but lacks the nice-to-haves such as a courtesy car or dedicated emergency assistance staff.

There is, however, a thoughtful $50 daily payout if your car gets stuck in the workshop, up to a maximum of five days..

By default, you’ll need to send your car to one of the 20+ Etiqa authorised workshops. You can purchase an add-on to get your car repaired at the workshop of your choice, but this might mean your claims take longer to process as well.

All these add up to a value-for-money, but basic, car insurance plan that’s more suited to older cars (no longer under warranty) and experienced drivers (who know what to do in an accident). 

Available promotions: Check out Etiqa’s ongoing promotions — especially the weekly Friday sale, TEIF — to snag up to 28 per cent discount on your car insurance.

Annual premium: From $1,190.25 before applying discounts (based on driver profile and car above)

3. Singlife with Aviva car insurance

Why it’s good: Car insurance providers do insure ‘young and inexperienced drivers’, but impose a much higher excess (amount you pay out of pocket for repairs) if they are involved in an accident. This might be off-putting for young drivers and newbies who just got their licenses.

We mention this because Aviva is one of the more forgiving insurers when it comes to young driver coverage.

While other insurers define this high-risk group as anyone up to age 27, Aviva’s cut-off age is 24 years old. (Although note that if you’ve had your license for less than two years, you’ll still be subject to the high excess.)

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What plans are available: Aviva offers three plans: Lite, Standard and Prestige. The cheapest Lite plan looks substantial enough for most drivers, as it allows repairs in over 30 workshops islandwide, including some workshops that are authorised by car brands/distributors.

In the event that you do get in an accident and make a claim, most insurers will reduce your NCD by 30 per cent.

Aviva cuts it by 10 per cent for the Standard plan onwards. So if you are concerned about preserving your No Claim Discount, you can pay a bit more for Standard.

Prestige is the most expensive plan, but it comes with a waiver for the young and inexperienced driver excess. It also includes Aviva’s complimentary service – eCall, a driver’s companion(device) that automatically gets help fast from the emergency team when an accident occurs.

Available promotions:

• 20 per cent off premiums when you use promo code CAR20. Applicable for all plans and new customers only. Valid till April 30, 2021.
• Get up to 32 per cent off premiums if you are an NSman with a MINDEF/MHA insurance policy or a civil servant with POGIS insurance.

You can also lock in your premium for two years, and/or opt to pay for your car insurance in instalments with a UOB or DBS/POSB credit card.

Annual premium: From $1,004.67 (based on driver profile and car above)

4. FWD car insurance

Why it’s good: As a fully digital insurer, FWD puts a lot of effort in being extremely user-friendly. You can get a quote and purchase your car insurance plan on their website in just minutes.

Customers like that FWD car insurance is relatively flexible. Unlike other insurers where you need to name additional drivers to avoid paying a higher excess, FWD’s coverage extends to anyone you trust to drive your car.

(That said, the standard $2,500 excess for damage done by a young driver under 27 still applies, or you can choose to lower the excess by paying more.)

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What plans are available: FWD offers three car insurance plans: Classic (cheapest), Executive and Prestige (most expensive). They cover roughly the same things, but to different claim limits. So unless your car is very expensive, a Classic plan should be sufficient for most Singaporean drivers.

All of FWD’s car insurance plans come with 24/7 roadside assistance service, medical expenses coverage in case of a car accident and all the other nice-to-haves, so you can rest assured knowing the coverage is adequate.

Note that FWD plans allow only repairs at the 10+ FWD authorised workshops. If you want the ‘any workshop’ option, you’ll have to select it as a paid add-on.

FWD also offers a ‘lifetime NCD guarantee’ once your No Claim Discount hits 50 per cent — you can retain your 50 per cent discount as long as you renew with FWD. 

Available promotions: Use promo code FWDCAR to get 20 per cent off Classic Plan and 25 per cent off Executive and Prestige Plan. Valid till April 9, 2021.

You can opt to pay for your car insurance in instalments with a DBS/POSB Mastercard or Visa Credit Card.

Annual premium: From $918.68 (based on driver profile and car above)

5. NTUC Income car insurance — Drivo

Why it’s good: NTUC Income is one of the most popular car insurance providers in Singapore for good reason.

It’s well-known for its emergency assistance team, Orange Force, who will come to the accident scene to arrange for medical help, vehicle removal, and help you sort out the insurance claim. 

We recommend NTUC Income to drivers who would appreciate this kind of help, especially at a time when you might be fretting over the accident.

What plans are available: For comprehensive car insurance, choose between NTUC Income Drivo Classic and Premium plans. 

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The main difference between them is workshop policy. The cheaper Drivo Classic plan restricts you to (close to 50) NTUC Income approved workshops islandwide, while Premium allows you to visit any workshop.

Opt for the latter if you drive a car that’s still under warranty, and can only go to the dealer’s workshop.

Available promotions: From now till July 2, 2021, receive up to $250 worth of CapitaVouchers when you insure your car with Income. Key in the promo code CAR2021 when you checkout in order to enjoy the promotion.

This promotion applies to new Drivo™ Motor Insurance sign-ups for cars that are aged between 0 to 5 years old.

Annual premium: From $994.19 (based on driver profile and car above)

Compare car insurance before renewing

We’ve shortlisted the five best car insurance plans for 2021, but this is by no means a static list. Insurers do change their premiums, policies and offerings all the time, so make sure you shop around when it’s time to renew your car insurance plan.

It does take some time to understand the options and get quotations online, so don’t leave it all to the last minute. Set yourself a reminder to research the options before it’s time to renew your policy!

Car insurance promotions

If you’re on the hunt for the best promotions and perks around for purchasing car insurance, here are the ongoing ones for you to consider:

FWD car insurance: Use the promo code found on the FWD website to enjoy discounts off premiums.

Singlife with Aviva car insurance offers a host of promotions, including:

• 20 per cent off premiums when you use promo code CAR20. Applicable for all plans and new customers only. Valid till April 31, 2021.
• Get up to 32 per cent off premiums if you are an NSman with a MINDEF/MHA insurance policy or a civil servant with POGIS insurance.

Common FAQs related to car insurance

Q. What does car insurance cover?

Car insurance can help protect you against any financial damages and losses that arise from a motor accident, such as the cost of repairing your vehicle and for towing services.

It can also provide you and your passengers with coverage for medical expenses, death, and lost or damaged belongings. 

Car insurance also covers accidental damage caused to the property of a third party. Lastly, you can also enjoy fringe benefits such as 24/7 emergency assistance and daily transport allowance while your car is in the workshop for repair.

Q. Why do you need car insurance? 

Car insurance is compulsory in order for you to drive a motor vehicle in Singapore. Driving without car insurance could lead to a fine of up to $1,000 and/or a jail term of up to three months.

You could also be disqualified for holding or obtaining a driving license for a period of 12 months. Legal implications aside, car insurance is also important to help protect you, your loved ones as well as third-parties from the financial repercussions of a motor accident. 

Q. How to compare car insurance? 

To compare car insurance, you should first check the policy coverage details. Some important sections you should look out for include coverage for vehicle damage, medical expenses, personal accident coverage and liability to third parties. 

Cost should also be a consideration, especially if you are tight on finances. Besides comparing the car insurance policies listed in this article, you can also get an instant quote online from different car insurance companies, with no strings attached. 

Protected up to specified limits by SDIC.

This article was first published in SingSaver.com.sg.