Types of Car Insurance & Covers FAQs
- Types of Car Insurance & Covers
- What types of cover can I choose from?
- Can anyone drive my car?
- How much do you insure my car for?
- Do I have to tell you if I drive to work in my car?
- Who would Budget Direct Insurance not insure?
- Do you cover modified cars?
- Are there any professions, trades or services you don't cover?
- Does your car insurance cover private hire vehicles or if I use my car for Grab, Go-Jek, Ryde or TADA?
- Do I really have to take up your Any Workshop option if my car is still under warranty?
- Are there any cars that Budget Direct Insurance does NOT insure?
- What is car insurance?
- What is customised car insurance?
- Who has the cheapest^ car insurance in Singapore in 2021?
- Insuring your Car
- Can I buy car insurance with Budget Direct Insurance?
- I need to extend my current car insurance with you for a couple of months because the shipment on my new car is delayed. Is extending my insurance with you possible?
- What is an Off Peak Car?
- I bought my insurance from you but was involved in an accident before the policy start date. Why was I informed that my premium with you will increase?
- What documents will I receive when I buy my policy?
- Paying for Car Insurance
- Do I have to pay my car insurance premiums in one lump sum or can I pay in instalments?
- 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?
- Can I make an early redemption of the IPP by settling the balance total outstanding amount owing in one lump sum?
- Can I cancel the credit card which is used for the monthly payment under the IPP?
- 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%)?
- If I choose to pay my insurance via monthly instalments then what method of payment can I use?
- Car Accidents
- What should I do if I have an accident?
- Do I need to report an accident to the police?
- What should I do if I am involved in an accident outside Singapore?
- What is the time frame for me to report an accident and what documents are required for accident reporting?
- Where can I report an accident involving my car?
- Do I need to inform Budget Direct Insurance if I privately settle the accident with the other party?
- What is the timeframe for me to submit my third-party claim against the other party’s insurer if I am not at fault for the accident?
- If someone knocked into me or my car and does not have any valid car insurance policy, what should I do?
- Do I need to lodge an accident report if I am not at fault for the accident and I am not claiming against my own car insurance policy?
- My car broke down. Can I claim against my own car insurance policy?
- What should I do in the event of "Park and Found" or "Hit and Run"?
- Car Theft and Repairs
- What should I do in the event my windscreen is damaged?
- What should I do if my car is stolen?
- Should I accept any assistance from unknown roadside towing services or workshops?
- Can I request for breakdown towing/assistance in the event my car breaks down?
- What should I do if I receive a Letter of Demand/ Writ of Summons?
- Are vehicle repairs at your workshops guaranteed?
- Where can I repair my car after an accident?
- Will there be a replacement car/ loss of use/ transport allowance when my car is undergoing repair?
- Will there be any charges if I repair/ replace my windscreen or window?
- Car Insurance Claims and Excesses
- 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?
- If there is damage to my car’s sun roof do I make a claim under my windscreen cover?
- How do I make a claim against the other party’s insurer?
- How do I make a claim against a foreign vehicle?
- How much will I be paid if my car is deemed as "Total Loss" in an accident or if my vehicle is stolen?
- Do I have to pay excess when I make a claim on my car insurance?
- No Claim Discount
- What is a No Claim Discount (NCD)?
- How does your NCD Protector work?
- I have 50% NCD from my current insurer, can it be transferred to the policy I'm about to get from you?
- I have been driving as a Named Driver on someone else’s policy can I get NCD?
- I have a vehicle registered under commercial use and I would like to change it to personal use. Can I transfer my NCD from my commercial vehicle to my private car?
- I am a foreigner living in Singapore and have a 50% NCD from overseas. Can it be transferred to the policy I'm about to get from you?
- What is a Certificate of Merit and how does this work with my NCD?
- Will my NCD be affected if I do not claim against my own car insurance policy and I have done a private settlement with the other party?
- Managing your Car Insurance
- How do I manage my policy?
- How do I renew my road tax?
- What if I need to change my details such as my address?
- Where do I find my car’s details?
- When is the best time to renew my car insurance?
- If I am on the automatic renewal arrangement what do I need to do to renew?
- I am on the automatic renewal arrangement with Budget Direct Insurance but I don’t want to renew what do I need to do?
- I notice that some information is missing in my renewal offer, what should I do about it?
- Can I cancel my policy after purchase?
- I have just sold /scrapped or de-registered off my car (last week/last month/this morning). What should I do to cancel the policy and get back my refund?
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.
Under Comprehensive cover we have 2 options.
- Comprehensive/Standard Car Insurance policy for low-risk drivers.
- Comprehensive/Higher Risk Car Insurance policy for drivers who have had 2 or 3 at-fault accidents and/or claims within the last 3 years.
Can anyone drive my car?
We have two Driver Plans for you to choose from. There may be Additional Excess applicable for Named and Unnamed Drivers. This is explained below.
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
- Any driver with a valid driving licence driving with your permission (but if such person resides with the Main Driver, i.e. a Household Member, you must name such person as a Named Driver in order for them to be covered).
- The Unnamed Driver Excess and the Named Driver Excess may apply.
IMPORTANT: A Household Member who is not named as a Named Driver under the Authorised Driver Plan will not be covered under your policy. Including additional driver(s) is subject to additional premium charges.
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.
- the Named Driver Excess may apply.
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. Including additional driver(s) is subject to additional premium charges.
Type of Excess
On Each and Every Claim**
|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
Unnamed Driver with 2 or more years' valid driving licence
Unnamed Driver below 25 years old
Unnamed Driver with less than 2 years' valid driving licence
** Including Prevailing 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.
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:
Unnamed Driver below 25 years old
Unnamed Driver with less than 2 years' valid driving licence
How much do you insure my car for?
Under the Comprehensive Car Insurance and Third Party, Fire and Theft Insurance policy plans, we insure your car up to its market value at the time of loss or damage.
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.
- Private car-pooling provided that no profit is made from such use and such arrangement is not made through a ride-hailing services platform.
- Carrying of goods or samples which are not for sale or payment
We do not allow:
- Carrying of passengers or delivery of goods in connection with any trade or business (e.g. for despatch or courier purpose) whether paid or not, such as lalamove and Foodpanda. Plus Grab or Grabhitch and use of the car on any ride-hailing platforms.
- Use of the car for driving tuition or test (whether paid or not).
- Hire or rental of the car to other people.
- Any other purposes which we have not agreed to in writing.
- Use of the car in connection with ride-hailing services (e.g. Grab, Ryde, Gojek, TADA and others)
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 for reasons other than due to number of accidents and/or claims 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?
If you have our Comprehensive or Third Party Fire and Theft insurance, you can choose to have your car accessories and car modifications, which are not part of the manufacturer’s standard fittings for your car but are LTA-compliant, covered under our Optional Covers, provided that they have been declared to and accepted by us to be covered under your policy.
Are there any professions, trades or services you don't cover?
We do not cover the following professions, trade or services:
- Driving instructors requiring the car for 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
Does your car insurance cover private hire vehicles or if I use my car for Grab, Gojek, Ryde or TADA?
We do not allow the use of your car for hire and reward, commercial purposes and/or on ride-hailing platforms including Grab, Ryde, Gojek, TADA and others.
Do I really have to take up your Any Workshop option if my car is still under warranty?
You do not always have to take up the optional cover Any Workshop if your car is still under warranty. Do check the warranty provided by your car dealer. Since 31 December 2017, most car dealers cannot impose restrictions threatening to void a warranty if a vehicle is serviced at an independent workshop.
With these changes, a car warranty may be affected only if such car dealer can establish that the damage or defect was caused by an independent workshop. For more details go to cccs.gov.sg.
You may wish to choose the optional cover Any Workshop if you have a preferred repair shop or workshop that you like to use.
If you decide not to take up this optional cover, your accident reporting and repairs will have to be carried out at one of our Authorised Workshops. You may choose which workshop to go to from our list of Authorised Workshops.
This option comes as part of our standard insurance policy at no extra cost to you. All repairs carried out at our Authorised Workshops are guaranteed for 12 months. And if you are claiming against the other party, you may go to any workshop of your choice even if it is not on our list of Authorised Workshops.
Are there any cars that Budget Direct Insurance does NOT insure?
Yes, there are certain models we do NOT insure at the moment. 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
What is car insurance?
Car insurance, also known as motorcar insurance, vehicle insurance or auto insurance, provides vehicle owners financial protection against medical and liability costs arising from traffic incidents. Car insurance may additionally offer financial protection against vehicle theft and damage due to events other than car accidents, such as natural disasters and collisions with stationary objects. There are usually three types of car insurance; Comprehensive Car Insurance which provides the highest level of cover, followed by Third Party Fire and Theft and finally, Third Party Only Car Insurance which usually provides the most basic level of cover and tends to be the cheapest policy. Having car insurance is a legal requirement in Singapore.
What is customised car insurance?
Customised car insurance allows you to choose some of the features you need rather than automatically paying for a bundle of covers offered by the insurer. For instance, some insurers automatically include covers you may not require, and charge you for everything as a bundled plan.
But there are some insurance companies that allow you to choose from a wide range of Optional Covers, such as a Singapore Only cover, where you get a discount on your premium if you don’t intend to drive your car out of Singapore. Customisable insurance means you can tailor your insurance to suit your needs, so you’re not paying for features you don’t use. Budget Direct Insurance is one such insurance company that allows you to customise your policy and save on your premiums.
Who has the cheapest^ car insurance in Singapore in 2021?
Budget Direct Insurance offers the cheapest^ Comprehensive Car Insurance plans in Singapore, according to an independent consumer research study. A study conducted by ValueChampion in 2021 showed that Budget Direct Insurance offers Comprehensive Insurance plans starting from $398.
^Comparison based on each insurer’s base plan with no add-ons. Coverage features may differ.