Blog / Car Insurance
How to Save on Car Insurance in Singapore
Car insurance premiums in Singapore can vary significantly depending on your vehicle, driving profile, and choice of insurer. But no matter your situation, there are smart, practical ways to save on car insurance without sacrificing essential protection. Whether you’re a seasoned driver or buying your first policy, these car insurance saving hacks can help you cut costs and maximise value—understanding car insurance costs and comparing multiple quotes are key strategies.
1. Compare Quotes from Multiple Insurance Providers
The quickest way to save on car insurance is to compare quotes from various insurance companies. Rates for the same car insurance coverage can differ by hundreds of dollars depending on your driving history, car model, and coverage limits. Make sure you're comparing apples to apples—get quotes for the same coverage to make a fair assessment. Start by using Budget Direct’s car and motorcycle insurance savings comparison tool.
2. Choose the Right Type of Car Insurance Policy
In Singapore, you can typically choose from three types of car insurance plans:
- Third Party Only (TPO) – Covers your liability for damage or injury/death caused to others and their property. It does not cover any loss of or damage to your car.
- Third Party, Fire & Theft (TPFT) – Provides essential protection by covering your liability for damage or injury/death caused to others and their property. Additionally, it covers loss or damage to your own vehicle caused by fire or theft.
- Comprehensive Coverage (also known as comprehensive cover) – Includes all the above plus damage to your car due to storms, floods, fire, collision, theft or vandalism
If your car is still under finance or is newer, comprehensive car insurance may be required and more suitable. For older cars, TPO or TPFT might be sufficient. In Singapore, however, where motoring costs are high, general advice is to choose comprehensive coverage for full protection.
3. Protect Your No Claim Discount (NCD)
Your No Claim Discount (NCD) can help you lower your annual premium by up to 50%. You earn a 10% discount for every year you drive without an own damage claim, capped at five years. To maintain your NCD:
- Drive safely
- Consider NCD Protector options to shield your discount even if you make a claim.
Keeping a clean driving history not only earns you an NCD but positions you as a safe driver, which can unlock additional discounts from some car insurers.
4. Increase Your Policy Excess
Raising your policy excess (the amount you pay out-of-pocket when you make a claim), which can include an additional excess for certain drivers such as unnamed or young drivers, can significantly lower your premium. Increasing your excess means you may pay a higher amount if you claim, but it often results in a lower premium. Just ensure you’re comfortable with the excess amount, including any additional excess, in the event of a claim.
5. Restrict Who Drives Your Car
Limiting your policy to only named drivers or authorised drivers—where an authorised driver is a person officially permitted by the insurer to drive your car—especially those aged 30 and above with a valid driving licence and a clean record, can reduce your premium. Note that excess payments may differ for authorised drivers compared to unnamed drivers. Avoid including unnamed drivers, particularly those under 30 or with limited driving experience, as they may raise your risk profile.
6. Take Advantage of Low Mileage and Telematics-Based Plans
Low mileage car insurance
If you drive less frequently, consider:
- Low mileage insurance plans
- Telematics-based insurance
These reward you for lower usage and safe driving habits, giving you potential savings based on actual usage and performance.
7. Drive an off-peak licence plate
Registering a car as an off-peak vehicle or weekend car can lead to substantial Certificate of Entitlement (COE) rebates and road tax discounts.
Do note, however, that they come with driving restrictions.
8. Register for a Certificate of Merit (COM)
If you’ve maintained a demerit-free driving record for 3 years—ensuring you avoid traffic violations to maintain eligibility—you may qualify for a Certificate of Merit from the Singapore Traffic Police. This can give you an additional discount on top of your NCD from participating insurance providers.
9. Use Authorised Workshops Only
Some car insurance policies are cheaper when you agree to use a list of authorised workshops. Insurers are able to control repair costs, and you benefit from more affordable auto insurance.
10. Review Unnecessary Add-ons
Before renewing your policy, assess whether you need all the add-ons. Features like transport allowance program, personal accident coverage, or roadside assistance might not always be necessary and could inflate your premium. Tailor your plan to suit your coverage needs.
10. Get the Right Car Insurance from the Start
With Budget Direct’s Comprehensive Car Insurance, you get real value:
- Coverage for damage to your car including theft, floods, and natural disasters
- Protection for bodily injury, property damage, and accidental damage
- Access to towing and windscreen repairs
- Quick, smooth claims process and customisable options
Your policy is also protected under the Policy Owners’ Protection Scheme, administered by the Monetary Authority of Singapore (MAS).
Final Thoughts: How to Save on Car Insurance Smartly
The cheapest car insurance Singapore has to offer isn’t always the one with the lowest sticker price—but the one that offers the best value, coverage, and flexibility. Whether you want more protection or just to pay less for your existing coverage, these car insurance hacks can make a meaningful difference.
Start with a free quote from Budget Direct today and discover how much you can save!
