What is excess? Should I increase or decrease it?

An excess is the amount you have to pay from your own pocket before the insurer pays you for the coverage you have. Most insurers quote for an excess of $500 or $600 by default, but you can always choose a higher excess in exchange for a cheaper premium. However, be warned that you will have to pay more upfront if you get into an accident. Ultimately, you need to strike a balance between the two costs - so that you are neither overpaying for insurance, nor will an accident render you penniless.

What does "Any vs. Authorised Workshop" mean?

"Authorised workshops" are a list of workshops that your insurer has approved. You can get a cheaper rate if you don't mind being restricted to authorised workshops only, though be sure to check that the list does give you sufficient options. People who choose this usually drive older cars or second-hand cars that are no longer under warranty. "Any workshop" means you can go to any workshop of your choice, but this will mean a higher premium on your car insurance. If your car is still under warranty, you may have to opt for this in order to send your car to your dealer's workshop. Otherwise, your dealer may decide that your warranty is void.

What’s the difference between named & unnamed drivers?

"Named drivers" means that you have explicitly and contractually stated on the insurance who you want to be covered. Other than yourself, this should also include regular users of the car, for example, your spouse. "Unnamed drivers" just refers to drivers who are not on it. They can still drive the car, but if they get your car in an accident, the insurer will cover significantly less of the damage. You can always add more named drivers for maximum protection, but it will cost you more, especially if you name someone who is a young and inexperienced driver.

What is No-Claim Discount (NCD) and NCD Protector?

For every year that you've driven and didn't have to make a claim, you get a 10% discount on the following year's premium. You can accumulate your No Claim Discount (NCD) up to a maximum of 50%, i.e. after 5 claim-free years. Getting a 50% discount on your premium sounds great, but remember that the car insurance company can always increase the quoted premium, rendering your discount ineffective. Sneaky. So no matter what, don't just auto-renew - you should still compare quotes anyway. But what if you make an insurance claim? Under normal circumstances, the discount drops by 30% (from 50% to 20%, for example). That's why most insurers also offer what's called an "NCD Protector" as a paid add-on to your car insurance policy. This allows you to make one claim without affecting your NCD.

How do I make a car insurance claim?

Different insurers have different processes on how to make a claim, however, but in general, these are the steps: Don’t move your car unless absolutely necessary. Call your insurer's hotline for assistance. Take (lots of) photos of the accident. Get the other driver's contact details. Get your car fixed at an authorized workshop. If you are a relatively inexperienced driver, you might want to opt for a car insurance company that is better known for its roadside assistance. For example, NTUC Income has a fleet of assistance riders who will come down to the site of your accident and walk you through every step of the way.

What happens if I cancel my car insurance policy?

Check the terms and conditions of your existing car insurance policy to find out what happens if you cancel it. Generally, if you cancel it before it is time to renew, the insurer will pocket about 30% of the unused portion of your insurance, leaving only about 70% as a refund for you. If you can, wait until your car insurance is up for renewal. Then you'll have the freedom to switch to any insurer you like without any penalty. By the way, you may not always be the one walking away from a car insurance policy. There are also situations where your insurer might decide to drop you (sometimes with no refund at all) if they think there's foul play or illegal modifications going on.

Compare Singapore's Best Car Insurance Quotes Online And Save Up To $620*

Searching for the best car insurance in Singapore does not have to be a hassle anymore. At MoneySmart, we help you compare car insurance quotes online from our comprehensive list of car insurance partners.

Compare Quotes Now

Provide us with your car details.

We'll ask you for details about your car (make, model, etc) so we know exactly what car insurance you need.

Compare car insurance quotes.

View a comparison of the best car insurance quote based on price and features (NCD protection, personal accident coverage, medical excess etc).

Get covered!

Click to apply for the best car insurance policy that suits your needs. Or, call our specialists for advice on the cheapest or most comprehensive policies.

Which Car Insurance Policy Has The Best Coverage?

No idea which insurer will give you the car insurance coverage you need? Policies and premiums may differ depending on the type of coverage you require. Here's some information to get you started.

Cheap & Basic Coverage

Roadside Assistance

Most Extensive Coverage

Customizable Car Insurance Plan

No-Claim Discount (NCD) Protector

Don't auto-renew your car insurance.

Over a third of drivers in Singapore lose out on potential savings with their car insurance premiums due to auto-renewals with their current provider. As an existing policy holder, you may not always be given the best premiums for the next year of coverage. Don't make the mistake of feeling pressured to auto-renew car insurance due to lack of information or time.

Compare at least 3 car insurance quotes.

Our car insurance study* revealed that MoneySmart customers can save up to $620 on their annual premiums when they compare car insurance quotes before purchasing a policy. Insurance providers focus on different coverage benefits, so compare the various quotes based on the coverage you need and the premium it will cost.

Increase your policy excess.

You can pay a lower premium by increasing the insurance excess on your policy. The excess is basically the amount of money you have to fork our from your own pocket before the insurance provider will cover the rest of the cost, in the event of an accident. Your policy quote will have a standard excess amount stipulated as a requirement, and you can offer to increase that amount of excess for a lower premium.

Get the best Car Insurance for you!

Get a Quote

Car Insurance 101

If you own a car in Singapore, car insurance or motor insurance is compulsory but doesn’t come cheap. Our free car insurance calculator will help you find the best and cheapest price on the market.

Car Insurance Calculator

What exactly does car insurance cover?

Good on you for asking this! Most Singaporeans buy car insurance just because it's compulsory here, without even knowing what it covers.

Car Repairs

When you own a car, dangers lurk around every corner. Apart from the ever-present threat of a car accident, your car may be stolen by car thieves, even burnt in a fire. As most car owners would know, repairing such extensive damage can be extremely expensive.

Car insurance is meant to cover such scenarios. You pay an annual premium for the assurance that the insurer will foot most of your car repair workshop bill if these things happen.

Financial liability to third parties

Another potential cost for that car drivers seldom think about is a financial liability to third parties.

Put simply, if you get into an accident and are sued for damage to another person or their property, car insurance will pay out some or all of the bill.

Comprehensive car insurance

As the name suggests, this type of car insurance covers almost everything, including your own car's repairs and replacement costs. It is the most common car insurance type in Singapore, which is understandable considering how expensive cars are here.

Third Party Only (TPO) car insurance

This is the cheapest and most basic type that covers ONLY damage to other people or their property. If anything happens to your own car, you will have to foot the bill yourself. This is generally recommended for really old cars that are at the end of their COE lifespan, because you might actually consider scrapping the car instead of repairing it.

Third Party, Fire & Theft (TPFT) car insurance

This is a slightly upgraded version of TPO car insurance. The same features apply, except TPFT also covers loss, theft and fire damage to your car. It offers slightly more protection, but it’s still an option that is generally reserved for owners of older cars.

How are car insurance premiums calculated?

Insurance premiums are based on risk, so, ultimately, it all depends on your personal profile and the car you drive. How much risk will the insurer take on if it agrees to cover your future expenses?

It depends on:

Your age
Driving experience
Claims history
Car make and model
Occupation
Marital status

Don't be too offended if you get quoted a remarkably high premium. This can happen sometimes due to statistics associated with your car or profile, no matter how good a driver you are. Insurers measure risk differently, so take the opportunity to shop around for more quotes.

What is "excess" and how does it impact my premium?

Car insurance policies are extremely customizable in that you can always lower the cost of your insurance premium by increasing this thing called the "excess".

This refers to the amount you need to pay out of pocket before you can make a claim from the insurance company.

As a benchmark, most insurers in Singapore generate quotes based on a $500 or $600 excess. So you can take this as the average amount that car drivers are willing to pay out of pocket. Both excess and premiums are costs to YOU, so when obtaining car insurance quotes, you should look at both in tandem. Sure, you can get a cheap premium if you opt for a high excess, but do you really want to pay $2,000 in cash if you get into a collision? Probably not.

Compare Car Insurance policies today!

Compare Now

Does choice of workshop matter?

Most car insurers also allow you to customize your plan by choosing between "authorized workshops" and "any workshop". This refers to which workshops you can send your car to and still be covered by your car insurance.

Which is cheaper?

It is always cheaper to go for the "authorized workshops" version because the insurer already has a list of workshops that it knows are affordable.
On the other hand, if you want the freedom to go to any workshop of your choice, the insurer has no way of making sure that it won't overcharge, so you will have to pay more for that privilege.

Old Cars: Choose "Authorized Workshop"

For not-so-fussy owners of older cars, opting for "authorised workshops" is usually a lot cheaper. Just make sure that the insurer's list of workshops is actually reasonable so you don't have to drive across the island to get your car repaired.

How do I apply for my Car Insurance?

Step 1

Let us know your needs

If you find downloading insurance policy brochures and comparing them side by side a hassle, our intelligent system can do the comparison for you. Answer some questions online and we'll have you going.

Step 2

Speak to our insurance specialists

After you've submitted your answers, our insurance specialists may drop you a call to clarify your needs and explain your options to you. Seize this chance to ask our experts the burning questions you may have about car insurance!

Step 3

Apply and purchase your car insurance

Once you have spoken to our insurance specialists, considered your options, and planned your finances, you are ready to apply for your car insurance plan with our guided assistance.

Get the best Car Insurance policy for your needs

Learn More

Why choose MoneySmart for your Car Insurance?

More Choice

We're comprehensive and convenient.
MoneySmart financial is partnered with 10 insurance providers in Singapore. But finding the best policy can be difficult and extremely tedious, especially with so many insurers out there. We do the heavy lifting for you by finding the best quotes and making the application process as fuss-free as possible.

No Paperwork

We help you make it happen.
Your car insurance journey doesn't end after you buy your policy. MoneySmart financial will ensure that we follow you along that journey, especially when it comes to the most painful part of all - claims. Our general insurance specialists will help ensure your claims are processed and help you to renew your policy every year. We help make it happen so that you can drive without worry.

Claims Support

We're determined to find what's best for you.
Every year when you have to renew your policy, we'll help you get better service, coverage and help you save on your car insurance premiums. Because we work with 12 of the biggest car insurance providers in Singapore, you can rest assured we'll do our best to find you the best policy available.

"By engaging MoneySmart to help compare car insurance quotations from different companies, I was able to save $400, and the best thing is I don’t need to do the comparison myself."

Melvin Lee

"Quick to reply to my questions. The team at MoneySmart is very helpful to help me understand what is needed for car insurance and helped me get significant savings!"

Stuart Crawford

"Great patience practiced explaining the coverage terms to help me understand the policy. Everything was smooth and efficient! Thank you, MoneySmart!"

Lim Li Li

A Beginner’s Guide to Major Insurance Companies in Singapore

Got Into a Car Accident in Singapore? A Step-by-Step Guide on What to Do

Car Insurance in Singapore – All You Need to Know to Get the Cheapest Rate (2021)

What is excess? Should I increase or decrease it?: An excess is the amount you have to pay from your own pocket before the insurer pays you for the coverage you have. Most insurers quote for an excess of $500 or $600 by default, but you can always choose a higher excess in exchange for a cheaper premium. However, be warned that you will have to pay more upfront if you get into an accident. Ultimately, you need to strike a balance between the two costs - so that you are neither overpaying for insurance, nor will an accident render you penniless.
What does "Any vs. Authorised Workshop" mean?: "Authorised workshops" are a list of workshops that your insurer has approved. You can get a cheaper rate if you don't mind being restricted to authorised workshops only, though be sure to check that the list does give you sufficient options. People who choose this usually drive older cars or second-hand cars that are no longer under warranty. "Any workshop" means you can go to any workshop of your choice, but this will mean a higher premium on your car insurance. If your car is still under warranty, you may have to opt for this in order to send your car to your dealer's workshop. Otherwise, your dealer may decide that your warranty is void.
What’s the difference between named & unnamed drivers?: "Named drivers" means that you have explicitly and contractually stated on the insurance who you want to be covered. Other than yourself, this should also include regular users of the car, for example, your spouse. "Unnamed drivers" just refers to drivers who are not on it. They can still drive the car, but if they get your car in an accident, the insurer will cover significantly less of the damage. You can always add more named drivers for maximum protection, but it will cost you more, especially if you name someone who is a young and inexperienced driver.
What is No-Claim Discount (NCD) and NCD Protector?: For every year that you've driven and didn't have to make a claim, you get a 10% discount on the following year's premium. You can accumulate your No Claim Discount (NCD) up to a maximum of 50%, i.e. after 5 claim-free years. Getting a 50% discount on your premium sounds great, but remember that the car insurance company can always increase the quoted premium, rendering your discount ineffective. Sneaky. So no matter what, don't just auto-renew - you should still compare quotes anyway. But what if you make an insurance claim? Under normal circumstances, the discount drops by 30% (from 50% to 20%, for example). That's why most insurers also offer what's called an "NCD Protector" as a paid add-on to your car insurance policy. This allows you to make one claim without affecting your NCD.
How do I make a car insurance claim?: Different insurers have different processes on how to make a claim, however, but in general, these are the steps:

Don’t move your car unless absolutely necessary.

Call your insurer's hotline for assistance.

Take (lots of) photos of the accident.

Get the other driver's contact details.

Get your car fixed at an authorized workshop.

If you are a relatively inexperienced driver, you might want to opt for a car insurance company that is better known for its roadside assistance. For example, NTUC Income has a fleet of assistance riders who will come down to the site of your accident and walk you through every step of the way.
What happens if I cancel my car insurance policy?: Check the terms and conditions of your existing car insurance policy to find out what happens if you cancel it. Generally, if you cancel it before it is time to renew, the insurer will pocket about 30% of the unused portion of your insurance, leaving only about 70% as a refund for you. If you can, wait until your car insurance is up for renewal. Then you'll have the freedom to switch to any insurer you like without any penalty. By the way, you may not always be the one walking away from a car insurance policy. There are also situations where your insurer might decide to drop you (sometimes with no refund at all) if they think there's foul play or illegal modifications going on.