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Frequently Asked Questions

Here are answers to some useful questions. If there’s anything else you’d like to ask, just give us a call at 6221 2111. We’re open Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

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Frequently Asked Questions

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Car insurance due? Pay Less or get $100

If your renewal premium with your current insurer is cheaper than our premiums for the same level of cover, we’ll give you $100 even if you don't buy. Find out more.
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Bring A Buddy

You get S$20 in shopping vouchers for every buddy you refer and who buys an annual policy from us, and your buddy will enjoy a 5% discount on that policy. Find out more.

Cover

What types of cover can I choose from?

We have three types of policies to choose from for your car.

Third Party Only is the most basic plan and covers your legal responsibility for damage to other people’s property or bodily injury or death to other people caused by an accident involving your car. It doesn’t cover damage to your own car.

Third Party Fire and Theft covers the same as Third Party Only plus loss or damage to your car if it is stolen or catches fire.

Comprehensive covers the same as Third Party Fire and Theft plus any damage to your car up to its market value.

Can anyone drive my car?

We have two Driver Plans for you to choose from. Below the definitions of the plans are applicable excess amounts which may apply.

Authorised Driver Plan

This plan covers:

  • The Policyholder
  • The person who uses your car most frequently (i.e. the Main Driver), if not the Policyholder, and
  • Anyone else you allow to drive your car.

However, if you allow someone who lives with the Main Driver (i.e. a Household Member) to drive your car, you have to name them on your policy in order for them to be covered.

IMPORTANT: A Household Member who is not named as a Named Driver under the Authorised Driver Plan will not be covered under your policy.

Named Driver Plan

This plan covers ONLY:

  • The person who uses your car most frequently (i.e. the Main Driver), and
  • Persons you include on your policy as Named Drivers.

IMPORTANT: The Policyholder must also be listed either as a Named Driver or the Main Driver under the Named Driver Plan in order to be covered under your policy.

Type of Excess

On Each and Every Claim**

Policy Excess S$600
   
Additional Excess  
Named Driver below 25 years old S$500
Named Driver with less than 2 years' valid driving licence S$500

Unnamed Driver 25 years old and above

S$500

Unnamed Driver with 2 or more years' valid driving licence

S$500

Unnamed Driver below 25 years old

S$1,500

Unnamed Driver with less than 2 years' valid driving licence

S$1,500

** before any applicable GST

Calculation of the total Excess payable on claims
The total Excess you have to contribute towards a claim is the aggregate of the Policy Excess and any Additional Excess(es) which apply.

Example
If a claim involves an Unnamed Driver who was 24 years old and was holding a valid driving licence for less than 2 years, the total Excess payable would be S$3,600.00 computed as follows:

Policy Excess S$600

Unnamed Driver below 25 years old

S$1,500

Unnamed Driver with less than 2 years' valid driving licence

S$1,500

Total S$3,600
How much do you insure my car for?

Under the Comprehensive and Third Party Fire and Theft plans, we insure your car up to its market value at the time of loss or damage.

Are vehicle repairs at your workshops guaranteed?

All repairs carried out at our Authorised Workshops are guaranteed against defects of repairs for 12 months.

Do I have to tell you if I drive to work in my car?

Yes, when you go through our 'get a quote' process, we will ask you how you use your car. Here are the definitions of vehicle usage:

Private and Commuting Use is use of your car for social, domestic and pleasure purposes, and for travelling between home and a regular place of work only.

Private and Occasional Business Use is "Private and Commuting Use" above, plus use for occasional business purposes by the Main Driver or any Named Driver only. "Occasional Business" means your car is not registered for business use, and the use of your car is not an essential part of earning income for a business.

Private and Business Use is "Private and Commuting Use" above, plus use for the business and/or occupation by the Main Driver or any Named Driver only.

We allow:

  • Private car-pooling provided that no profit is made from such use.
  • Carrying of goods or samples which are not for sale or payment.

We do not allow:

  • Carrying of passengers or delivery of goods for payment.
  • Driving tuition or test (whether paid or not).
  • Hire to other people.
  • Any other purposes which we have not agreed to in writing.
Who would Budget Direct Insurance not insure?

We won’t insure drivers who have had their licence suspended or revoked in the last 3 years. And we won’t insure those who have been rejected or declined by an insurer in the last 3 years. We don’t cover drivers who have a DUI charge (driving while under the influence of alcohol or drugs).

Do you cover modified cars?
What is a No Claim Discount (NCD)?

NCD is a discount on your car insurance premium. It’s based on how long you’ve been driving and your claims record. As you accumulate more years of driving without making a claim, you receive a discount on the full-priced premium.

Provided you have been insured with us for the last 12 months and if you do not make any claim under your policy, we will give you a discount off your premium on the following scale when you renew your policy:

Number of claim-free years

NCD

One year

10%

Two years

20%

Three years

30%

Four years

40%

Five or more years

50%

Your NCD will be shown on the Policy Schedule and/or Certificate of Insurance. However, if subsequently, there is a claim made under your policy, we will reduce your NCD as follows:

Current NCD

NCD after 1 claim

50%

20%

40%

10%

30% and under

0%

Your NCD will be reduced to 0% when 2 (or more) claims are received under your policy in a policy term. If you fail to report an incident leading to a claim on your policy within 24 hours of the incident or the next working day, we will reduce your NCD by an extra 10%.

Your NCD will not be affected if:

  • a claim is for windscreen or window repair or replacement only; or
  • your car is involved in a wholly no-fault accident with another vehicle.

Your NCD entitlement is non-transferable to another person.

If you sell your car and buy another one and continue to maintain a car insurance policy with us, you will be entitled to retain your NCD for the new policy. If, however, you own more than one car, you will need to earn the NCD for each car. In such cases, we will advise you on the NCD under each car policy.

How does your NCD Protector work?

You can choose to protect your NCD under this Optional Cover. Refer to the table below for more details. This Optional Cover is only available to you if your NCD is 30% or more.

No. of claims made during Policy Term* NCD at commencement of Policy Term is 30% NCD at commencement of Policy Term is 40% NCD at commencement of Policy Term is 50%
One 30% 40% 50%
Two 0% 10% 20%
Three or more 0% 0% 0%
* Includes cases where an incident occurs during the Policy Term but the claim is made after the Policy Term has expired.
What if my car is still under warranty? What is the best option for me for repairs?

If your car is still under warranty we recommend you take out the ‘Any Workshop’ option so you can go back to the dealer workshop. Otherwise you may not be able to enjoy the benefits of your warranty.

How do I renew my road tax?

  1. At any Road Tax Collection Centres
    Please bring along a copy of the Certificate of Insurance which you would have received from us by email and post (only if you have opted out of going paperless) and check with the respective centres on their road tax collection hours and payment modes before proceeding to renew your road tax at any of these centres.
  2. Via AXS machines / LTA One Motoring website
    Please purchase your car insurance at least 3 working days before your road tax is due. This allows time for LTA’s system to update before you renew your road tax electronically. If your road tax is already due, we recommend you renew your road tax at the Road Tax Collection Centres.

 

I have bought a new car but shipment is delayed which means I need to extend my current car insurance for another couple of months. Will your insurance policy allow me to do this?

Yes, we will allow you to have your policy cover up to a maximum of 18 months. And once your new car is ready you can cancel your insurance with us and we will give you a refund for the unused cover. Just give us a call at 6221 2111, Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays) and our customer care executive will be happy to help you set this up.

What is an Off Peak Car?

In Singapore, these are cars that are registered under the Revised Off-Peak Car (ROPC), Off-Peak Car (OPC) or Weekend Car (WEC) scheme (each, an “OPC Scheme”). Such cars generally can be driven only during the stipulated non-peak hours on weekdays and on weekends and public holidays. Registering your car under any OPC Scheme helps you cut the costs of owning a car with savings on road tax and rebates against the quota premium for a Certification of Entitlement (COE). And at Budget Direct Insurance, you get to make even bigger savings with a 15% discount on your car insurance.

Are there any cars that Budget Direct Insurance does NOT insure?

Yes, there are certain models we do NOT insure at the moment. As a new insurer we are keen to keep our premiums low so that means being choosy about who and what we insure. As a result, we do not insure some high-value cars and high-performance motors.

These are the cars we do NOT insure:
- Aston Martin
- Bentley
- Ferrari
- Lamborghini
- Lotus
- Maserati
- McLaren
- Mitsuoka
- Pagani
- Porsche
- Rolls-Royce

I bought my car insurance policy from Budget Direct Insurance a week or so before the policy was due to start. I was involved in an accident after the purchase of the policy but before the policy start date, and I will now claim against my current insurance policy. But I have been told that my new insurance premium with you will increase. Is this right?

Yes, it is standard industry practice for insurers to update the number of accidents prior to the policy start date, which may result in the premium being adjusted accordingly. At Budget Direct Insurance, we look at the total number of accident(s)/ claim(s) on your record in the last three years preceding the start date of your policy, regardless of whether you were at fault in those accident(s).

Are there any professions, trades or services you don't cover?


We do not cover the following professions, trade or services:

  • Driving instructors requiring business use
  • Professionals who are involved with the entertainment industry
  • Professional sportsmen or sportswomen
  • Personnel of foreign armed forces
  • Foreign diplomats and foreign diplomatic staff
If there is damage to my car’s sunroof do I make a claim under my windscreen cover?
Under the Budget Direct Insurance car insurance policy, damage to your car’s sun roof will be regarded as damage to your car (body), and not windscreen. As such, you will need to make a claim for own damage to your car against your policy, and in making such claim, your policy excess will apply and your NCD may be affected.

Managing your policy

What documents will I receive when I buy my policy?
  1. Policy Summary
  2. Certificate of Insurance
  3. Policy Schedule
  4. Tax Invoice
  5. Product Disclosure Document

The above documents will be sent to you by post unless you opt to go "Paperless", in which case we will email you the documents. If you decide to go "Paperless", your premium is reduced by S$20 (before GST).

What if I need to change my details such as my address?

You will be able to access your details under the 'Policy Manager' section of our website or you may call us at 6221 2111, Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

Can I cancel my policy after purchase?

Yes, we offer you a 'Cooling-off period' to help you to decide if the cover is right for you. This is a 14-day window from the time of purchase, where you can cancel your policy and receive a full refund if your policy has not been incepted and no claims have been made or accidents reported on your policy. If your policy has been incepted, a pro-rated refund will be provided without a cancellation fee. We would refund you via the same way as you have paid for your premium, e.g. if you have paid by cash or cheque, we would refund you by cheque. If you have paid by credit card, we would refund you through the same credit card.

Can I cancel my policy after the Cooling-off period?

Yes, you can cancel your policy by giving us at least 7 days’ notice. You will receive a refund of the pro-rated premium less a cancellation fee of S$50 (before GST) if no claims have been made or accidents reported on your policy.

Where do I find my car’s details?

You can check your car details here on LTA's website.

If you need help finding this information, give us a call at 6221 2111, Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

Do I have to pay my car insurance premiums in one lump sum or can I pay in instalments?

You can choose to pay in one lump sum, or if your premium is above S$200 then you can pay in instalments by using your DBS/POSB MasterCard or Visa credit card. Just select your preferred payment method before you pay online or over the phone with us. Choose to enjoy a 3% discount on your premium when you make a single premium payment, or simply pay your premium in 12 interest-free monthly instalments. The choice is yours.

I am paying my car insurance policy premium by monthly instalment under an Instalment Payment Plan (IPP). What happens if I cancel the policy before the end of the policy term?

We will credit the refund of the pro-rated unused premium (“Refund Credit”) to the same credit card account, in accordance with the terms in your Product Disclosure Document. Your IPP with the bank will terminate and the balance total outstanding amount under the IPP will be set-off against the Refund Credit, and reflected accordingly in your credit card statement.

Can I make an early redemption of the IPP by settling the balance total outstanding amount owing in one lump sum?

You may do so by contacting the bank. However, please note that administrative fees may be imposed by the bank in accordance with its respective terms and conditions in the event of early redemption of the IPP (that is not due to policy cancellation). For more details, you may wish to check with your bank directly.

Can I cancel the credit card which is used for the monthly payment under the IPP?

You may do so by contacting the bank. However, please note that the balance total outstanding amount under the IPP will become payable immediately. Do also note that administrative fees may be imposed by the bank in accordance with its respective terms and conditions in the event of early termination of your credit card account. For more details, you may wish to check with your bank directly.

I am paying my car insurance policy premium by monthly instalment under an IPP. What happens if there is a partial refund of premium payable to me before the end of the policy period (for example, due to change in my NCD entitlement from 20% to 50%)?

We will credit the premium to be refunded to the same credit card account, and this will be reflected in your credit card statement for that billing period. There is no change to your monthly instalment amount, which will continue to be charged to your credit card every month, up to the final instalment.

If I choose to pay my insurance via monthly instalments then what method of payment can I use?

If your premium is above $200 you can pay in 12 monthly instalments. At the moment this is possible using your DBS or POSB credit cards only. We don’t charge you interest for your premium if you wish to pay in instalments.

Why do you only accept DBS/POSB credit cards for instalment payment?

At the moment we only accept payment for instalment plans via DBS/POSB credit cards.

In the future we will be bringing in other banks so that our customers have more choice when it comes to paying via instalments. This is currently in the process of being organized. In the meantime, we believe that DBS/POSB banks have one of the largest market shares for consumer banking (personal accounts).

We apologise if this causes any inconvenience to any of our customers and we thank you for your kind understanding and patience on this matter.

When is the best time to renew my car insurance?

To avoid road tax late payment penalty, your renewal instruction and full payment of premium should reach us at least 14 days prior to the expiry of your current policy. We will take it that you are not renewing your Policy if we do not receive the full premium by the expiry of your current policy and your policy will lapse after the last day of cover.

If I am on the automatic renewal arrangement what do I need to do to renew?

You do not have to do anything and we will deduct/charge the renewal premium from your credit card 14 days before the expiry of your current policy (“Deduction Date”).

I am on the automatic renewal arrangement with Budget Direct Insurance but I don’t want to renew what do I need to do?

If you do not wish to renew your policy, please inform us at least 2 working days before the Deduction Date and your policy will lapse after the last day of cover.

I notice that some information is missing on my renewal offer, what should I do about it?

If any information on your renewal offer is missing or incorrect, or there are any changes to your circumstances, please let us know immediately. Either email us right back or call us at 6221 2111, Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).

Claims

What should I do if I have an accident?

A step-by-step guide on what you should do if you are involved in an accident:

  1. Remain calm and do not panic.
  2. Check if anyone is injured - if there is personal injury, call 995 for ambulance or 999 for police assistance.
  3. Do not move your vehicle unless necessary, especially if there are personal injuries involved.
  4. Take photographs of the accident scene and damaged vehicles/property.
  5. Exchange the following information and particulars with the other parties involved (including witnesses):

    - Vehicle Registration Number
    - Name/Address/NRIC
    - Contact Number
    - Insurer
  6. Do not admit any liability, whether verbally or in a written form.

Should you require any towing services or assistance, please call our 24-hours Claims hotline at 6221 2199 if you are in Singapore or +65 6540 2199 if you are overseas. Wait for a tow truck assigned by Budget Direct Insurance to tow your car – you should not accept help from any other towing service providers. You should also report the accident at any of Budget Direct Insurance’s authorised workshops or Accident Reporting Centres within 24 hours of the accident or by the next working day.

Do I need to report an accident to the police?

You are only required to report the accident to the police if someone is injured in the accident or if it involves government/foreign vehicles, government property, cyclists or pedestrians.

Should you require further assistance, please call our 24-hour claims hotline at 6221 2199 or +65 6540 2199 if you're overseas.

What should I do if I am involved in an accident outside Singapore?

You are required to report the accident to the local police. If your car is damaged or no longer safe to be driven, we will assist to arrange towing services to bring your car back to Singapore. For further assistance, please call our 24-hour claims hotline at +65 6540 2199 and our representatives will advise you.

If your car is safe to be driven, you may report the accident to our authorised workshop upon your return. For more information, please visit our authorised workshops page.

Where can I repair my car after an accident?

You can choose from the list of our authorised workshops to claim under your own policy. We will guarantee against defects of repairs authorised by us for a period of 12 months or until the car is damaged again, whichever is earlier. You may proceed to any workshop of your choice if you are claiming against the other party.

If you have purchased the Any Workshop optional cover, you may proceed to any workshop of your choice to repair your car. Regardless of where you send your car for repairs, you will need to file an accident report at any of our authorised workshops/reporting centres. Please note that we only provide a 12-month guarantee against defects of repairs if they are carried out at one of our authorised workshops.

What should I do if my car is stolen?

You are required to report the theft to the local police and proceed to any of our authorised workshops/reporting centres to lodge an incident report. For further assistance, please call our 24-hour claims hotline at 6221 2199 or +65 6540 2199 (if overseas) and our representatives will advise you.

How much will I be paid if my car is deemed as "Total Loss" in an accident or if my vehicle is stolen?

If you have a Comprehensive Car Insurance policy with us, we may pay you the market value or replace your car at the time of loss (as determined by us). Upon replacement or payment, your policy will no longer be in force and there will not be any premium refund.

If you have a Third Party Fire and Theft Insurance policy with us, we will only pay you the market value of your car at the time of loss (as determined by us) in the event your car is deemed total loss due to damage by fire or is stolen. There will not be any coverage on your car if it is due to an accident.

If you have a Third Party Only Insurance policy, there will not be any cover on your car.

What should I do in the event of "Park and Found" or "Hit and Run"?

In the event of "Park and Found" or "Hit and Run", you or your driver must lodge a police report before reporting the incident at our authorised workshop/reporting centre. You may choose to claim under your own policy.

Should I accept any assistance from unknown roadside towing services or workshops?

You should only allow tow trucks assigned by Budget Direct Insurance to tow your car.

Should you require any assistance, please call our 24-hour claims hotline at 6221 2199 or +65 6540 2199 (if overseas).

Can I request for breakdown towing/assistance in the event my car breaks down?

Breakdown towing/assistance is available if you purchase the 24 Hours Roadside Assistance optional cover. If you did not purchase this optional cover, we can help you to arrange for roadside assistance, however, you will have to pay any costs directly to the operator.

What is the time frame for me to report an accident and what documents are required for accident reporting?

The driver involved in the accident must report personally within 24 hours or the next working day, with a copy of his/her driving licence and NRIC, to any Authorised Workshop or Reporting Centre. The car must be present at the time of reporting.

Will there be a replacement car/ loss of use/ transport allowance when my car is undergoing repair?

There will be no replacement car. If you purchased our Transport Allowance optional cover we will pay you S$50 per day, capped at a maximum of 10 days per accident and subject to a total of 20 days per policy year. This optional cover includes an additional allowance of S$50 to "get you home" after an accident.

This Transport Allowance optional cover is only available for Comprehensive Car Insurance and Third Party Fire and Theft Insurance policy types.

What should I do in the event my windscreen is damaged?

Call our claims team on 6221 2199 or +65 6540 2199 (if overseas); we will arrange for our repairer to assess the damage and recommend a replacement or repair of your windscreen or window.

Will there be any charges if I repair/ replace my windscreen or window?

Under our Comprehensive Car Insurance, if your windscreen or window needs to be replaced, a $100 excess (before GST) applies. Your windscreen cover will be auto-reinstated after each replacement. The excess is waived if your windscreen can be repaired.

If you have purchased the Windscreen Add-on optional cover with either of our Third Party plans, you are entitled to 2 repairs or replacements per policy year. If your windscreen or window needs to be replaced, there will be a $100 excess (before GST) applicable. Your windscreen cover will be auto-reinstated after the first repair or replacement. The excess is waived if your windscreen can be repaired.

How do I make a claim against the other party’s insurer?

After reporting the accident at our authorised workshop/ reporting centre, our authorised workshop is able to assist you to make a claim or you may proceed to any workshop of your choice to file a third party claim.

Do I need to inform Budget Direct Insurance if I privately settle the accident with the other party?

Yes, you are required to file an accident report at our authorised workshop/ reporting centre for each and every accident even if there is a private settlement with the other party. The purpose of informing us is to safeguard you from any claims that might arise from the accident and we will be able to defend you against any legal proceedings. You still need to lodge an accident report for any accident you are involved in.

Please click here for a copy of Budget Direct Insurance Private Settlement Form.

What should I do if I receive a Letter of Demand/ Writ of Summons?

If you receive any Letter of Demand/ Writ of Summons from the other party relating to the accident, you should forward it to us "By Hand" immediately. You should not negotiate, admit liability or offer payment to the other party.

How do I make a claim against a foreign vehicle?

You are required to lodge a police report at, or near the place of accident. If you are not liable for the accident, you may choose to either claim under your own policy and we will recover all amounts paid from the insurer of that vehicle or you may proceed to any workshop of your choice to file a third party claim.

Do I have to pay excess when I make a claim on my car insurance?

Excess is the amount that you have to pay towards your claim. At Budget Direct Insurance our standard policy excess for cars is $600. You can choose to reduce or increase this amount depending on your claim experience and budget.

For car you can reduce your excess right down to zero. This will increase your premium but means you pay less excess if you have to make a claim. You can also increase your excess up to $1,500 - which means you pay less premium.

Types of Excess

The table below shows the types of Excess that will apply when you make a claim

Type of Excess

On Each and Every Claim**

Policy Excess S$600
Additional Excess
- Windscreen Excess S$100
- Named Driver below 25 years old S$500
- Named Driver with less than 2 years’ valid driving license S$500
- Unnamed Driver 25 years old and above S$500
- Unnamed Driver with 2 or more years’ valid driving license S$500
- Unnamed Driver below 25 years old S$1500
- Unnamed Driver with less than 2 years’ valid driving license S$1500

** before any applicable GST

Example

If a claim involves an Unnamed Driver who is 24 years old and has held a valid driving licence for less than 2 years, the total Excess payable would be S$3,600. This amount is computed as follows:

Policy Excess S$600
Unnamed Driver below 25 years old S$1,500
Unnamed Driver with less than 2 years’ valid driving license S$1,500
Total S$3,600

Policy Excess waived

You do not have to pay any Policy Excess towards a claim arising from an accident involving another identified vehicle registered in Singapore, that was wholly not your fault based on our assessment.

Where can I report an accident involving my car?
If I have not purchased the “Any Workshop” optional cover and don’t intend to make an Own Damage claim, can I visit listed agent workshops for reporting?

No, if you have not purchased the “Any Workshop” optional cover, you can only report your accident at our Authorised Workshops.

I have 50% NCD from my current insurer, can it be transferred to the policy I'm about to get from you?

Your current NCD (0-50%) is transferable to your new policy with Budget Direct Insurance. But do note that any protected NCD (NCD Protector) is not transferable from one insurer to another. If you have been involved in an at-fault accident/ claim and your 50% NCD has not been reduced to 20% because of the NCD Protector, you would have to declare your NCD to be 20% when you switch over to us.

If you are unsure of your renewal NCD level, please state 0% or give us a call at 6221 2111, Mondays to Fridays, 8am to 8pm and Saturdays, 9am to 3pm (excluding public holidays).