Blog / Car Insurance
Compare car insurance. Which is right for you
Besides being mandatory, having car insurance in Singapore makes enormous sense in a city where owning a car can cost you an arm and a leg. Having car insurance offers you protection when your precious possession gets damaged and more.
When it comes to car insurance, there are several types available. The two main types are comprehensive car insurance and third party motor insurance cover.
Before you jump into choosing either comprehensive or third party car insurance plans, you would do well to consider various factors. These are the age and model of your car, your gender, driving record and years of driving experience.
Comprehensive car insurance
Comprehensive car insurance covers liability for damage or injury/death caused to others and their property.
It also includes any damage to your car due to fire, storms, floods and accidents. In addition, it covers towing and damage to your car caused by theft and vandals as well as damage to your windscreen and windows.
It is the highest level of insurance you can get.
The good thing about comprehensive car insurance cover is that you can claim from your insurer for accidents that are deemed to be your fault, and also for situations when the fault cannot be proven. This can save you quite a bit of money when it comes to car repairs.
A comprehensive car insurance cover makes sense when you are buying a new car as it offers the maximum possible coverage against damage to your own vehicle, thus offering you peace of mind.
If you are buying an older vehicle, the premium you pay for comprehensive car insurance will take into account the number of years left on COE, and as such are usually lower than the premium for insuring a new car.
But when it comes to cars that are older than 10 years, certain insurers will only insure them on a case-by-case basis.
Most people think that comprehensive car insurance is more expensive than other plans. While this is usually the case, it is not always so.
This is because many high-risk drivers favour third party insurance which has caused this type of insurance to become more costly.
So if you are choosing your insurance based on cost, it is worth checking out all the different types of insurance available to make sure you get the best value for your money.
Also, don’t assume that comprehensive covers include extras. Check if they do; and if not, you may want to add them on.
Some of these are a courtesy car while your car is being repaired or recovered, if it has been stolen; and a breakdown cover.
Others include legal expenses if you have to take the other party to court to recover the costs from the accident. This can be pretty expensive, so it’s worth looking into it.
Third Party car insurance
Third Party Only insurance offers you the legal minimum level of car insurance cover.
It covers your liability for damage caused by the car to other people's property for up to S$5,000,000. However, it does not cover damage to your car or personal injuries as a result of the accident.
It is preferred by drivers whose cars are near the end of their COE lifespan, or who are buying a second-hand car.
If your car is an older model that is cheap to repair, then a third party policy may be for you.
A new, more expensive car model might cost much more to repair and minimise the savings you made by sticking with third-party cover.
Third Party Fire and Theft car insurance
Another type of third party insurance includes protection against fire and theft.
This type of policy allows you to claim for:
*replacing your car if it’s stolen
*damage that happens as a result of an attempted theft eg. broken door locks or a stolen radio
*fire damage to a car
Some insurers have driver plans that allow you to save more by specifying who will drive your car. Is it just you or your family members? What about your friends? Adapt your cover to suit how your car is used and only pay for what you need.
Do take the time to compare various plans on the market. Budget Direct Insurance, for example, offers comprehensive plans for up to 15 year old cars. And Third Party cover for vehicles up to 30 years old. You can get an instant online quote too and buy within minutes, unlike many other insurers who will take time to assess each case individually.
Compare car insurance prices
Here we compare car insurance quotes from Budget Direct Insurance using a driver profile of:
* A 45 year-old MARRIED man (1974)
* 10 years driving experience
* 50% NCD
* Driving a 2 year old TOYOTA Altis 1.6