27 August 2020
CAR INSURANCE 101: Types of car insurance plans in Singapore

If you’ve been following our series of insurance-related articles, you probably already know that car insurance in Singapore is mandatory, and you’ve also likely mastered some key terms. Whether you’re new to car ownership or not, how much do you know about the different car insurance plans in Singapore?

Do you kinda wish you hadn’t tried to siam that insurance agent from the booth at the roadshow/showroom, or perhaps taken more time to read the fine print on that document you signed? Ok, ok no need to panic. Whatever the case, it’s never too late to learn a little more! Do note that details of each plan may differ slightly depending on which insurance company you approach.

First, there are 3 main types of car insurance plans in Singapore:

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

If you’re feeling basic, consider the Third Party Only (TPO) plan.

It doesn’t matter how much you argue, you ain’t getting nothin’ under the TPO.

TPO is the most basic form of car insurance in Singapore. It meets the minimum legal requirements and comes with low cost but low coverage. It covers damages that you may cause to the property of others, whether it’s another driver’s car or even streetlamps and fences. However, it doesn’t protect you or your car (boo!), so you won’t receive a pay-out from your insurer in the event of an accident.

So, if you’re really not too concerned about financing the costs of damages to your own car during an accident, then consider a TPO plan. Maybe you drive an old/overused car that you’re planning to scrap soon, own a car that’s hardly on the roads, or you don’t rely on your car that much to get around.

Whatever the case, if you just want the bare minimum, go for the TPO.

So what’s covered again?*

Damages to your car:
Damages to car/property of others:
Loss/damages to your car due to fire or theft:
Loss/damages to your car due to natural disasters:

If you need a little more reassurance, then look at a Third Party Fire and Theft (TPFT) plan.

Not all thieves are deterred by handsome cardboard cut-out policemen.

Apart from covering damages to the property of others like with the TPO, the TPFT plan, as its name suggests, also covers damages caused by fire or theft.

This mid-tier option would best suit drivers who don’t want to go “all-out” with their insurance, but still want coverage that’s a bit more comprehensive than a TPO. It’s also best for drivers who often travel to countries where crime is a little more rampant than here (*coughs in Singaporean*). Of course, at the risk of sounding like your neighbourhood GP, prevention is better than cure. So do remember to keep your doors and windows locked!

Do note however, that the TPFT doesn’t cover damages caused by non-theft/fire related factors. i.e. if you’re one of the many victims of bird poop ruining your ride’s paintwork, or if your car gets hit by an errant driver.

So what’s covered again?*

Damages to your car:
Damages to car/property of others:
Loss/damages to your car due to fire or theft:
Loss/damages to your car due to natural disasters:

If you want it all, get a comprehensive plan.

Yes, accidents suck. But at least you’re pretty much covered with a comprehensive plan.

If you want ultimate peace of mind and don’t mind splurging a little, go for a comprehensive plan.

These plans normally include all the benefits of TPO and TPFT plans, along with damages caused by Acts of God. These include situations where perhaps a random tree falls on your car (touch wood, literally) or ponding flooding. Apart from offering personal accident benefits, passengers are also covered for their medical expenses. Also, comprehensive insurance plans will cover damage to your car from accidents, whether it’s your fault or not.

However, not all comprehensive plans are alike. As they tend to cover a range of things, they’re not as straightforward as the TPO or TPFT plans. Some may only offer coverage for specific natural causes, while others may entice you with add-ons like coverage for a courtesy car when your car is in the workshop. Naise!

You should consider this plan if you rely on your car a lot, especially to commute to work and back. If your car is brand new, has high value or will cost a lot to repair, look to this plan too. You should also consider it if you’re not a very experienced driver. But before you say anything: having comprehensive insurance doesn’t mean you’re a bad driver. If you happen to take a loan to pay for your car, some banks will also ask that you take up a comprehensive plan as a form of assurance.

So what’s covered again?*

Damages to your car:
Damages to car/property of others:
Loss/damages to your car due to fire or theft:
Loss/damages to your car due to natural disasters:

If you’re still finding it hard to decide on the right car insurance for your ride, get in touch with us here and our insurance partner g&m will find you a quotation that best suits your needs.

*May vary slightly depending on insurance company