Car Insurance Singapore

Car insurance is a type of insurance policy designed to protect vehicle owners from financial losses in the event of an accident, theft, or damage to their vehicle, depending on the plan purchased. It can provide coverage for damages to the vehicle itself, as well as liability for injuries or damages caused to others. This means that if you are involved in a car accident, your car insurance policy can help cover the costs of repairs, medical expenses, and legal fees, ensuring you are not left with a hefty financial burden.

Car insurance is essential for vehicle owners in Singapore for several reasons. Firstly, it provides financial protection and peace of mind in the event of an unexpected accident or loss of the vehicle. Without car insurance, you could be responsible for paying out-of-pocket for significant expenses, including vehicle repairs and medical bills. Secondly, car insurance helps ensure that vehicle owners comply with legal requirements for vehicle ownership in Singapore. Driving without valid car insurance is illegal and can result in severe penalties. Therefore, having a car insurance policy is not only a smart financial decision but also a legal necessity.

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. Comprehensive 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.

We have three types of car insurance policies to choose from.

Third Party Only is the most basic car insurance 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.

• 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.

All policies are protected under the Policy Owners’ Protection Scheme, which is administered by the Singapore Deposit Insurance Corporation (SDIC). This coverage is automatic for policyholders. For more information on the benefits and coverage limits, visit the SDIC website.

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

Authorised Driver Plan (only for our Standard Car Insurance policy)

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 living with the Main Driver (i.e. Household Member) to driver your car, you have to name them on your policy for that driver to be covered.

IMPORTANT: A Household Member of the Main Driver 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: Unnamed Drivers are not covered. The Policyholder must be named either as a Named Driver or the Main Driver under the Named Driver Plan in order to be covered under the policy.

Additional Excess applies to both Authorised Driver and Named Driver Plans:

 

Type of Excess	On Each and Every Claim**
Policy Excess	S$600
Additional Excess (under our Standard Car Insurance policy)
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 prevailing GST

Note: Unnamed Driver Excess is applicable to our Authorised Driver Plan only.

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 which apply.

Example
If your policy has an Authorised Driver Plan and 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

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 and such arrangements are not made through a Ride-hailing Service platform.
• 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 in connection with any trade or business (including but not limited to despatch or courier purposes) (whether paid or not) (for example lalamove, Foodpanda, Grabfood,Deliveroo and others).
• Ride-hailing services (for example Grab, GrabHitch, Ryde, Go-Jek, TADA and others).
• Any purposes in connection with Motor Trade.
• Driving tuition or test (whether paid or not).
• Hire or rental to other people.
• Any other purposes which we have not agreed to in writing.

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 term. 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.

You can choose to protect your NCD under this Optional Cover. This Optional Cover is only available to you if your NCD is 30% or more. Please note, NCD Protector is not available with our Higher Risk Car Insurance policy. Refer to the table below for more details.

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.

** NCD at commencement of Policy Term does not refer to the protected NCD transferred from another insurer. Your protected NCD is not transferable to another insurer and does not guarantee renewal of your Policy with us.

When considering your car insurance renewal, it's good to compare our different plans, features and optional benefits to find the best options and potential savings. You can easily renew online, over the phone, via email, SMS or in-person. Find out more about our hassle-free car insurance renewal process.

With Budget Direct, you can conveniently make a claim online or over the phone at any time of the day or night, 365 days a year.

To file a car insurance claim, you will need to provide the necessary documentation, including details of the incident, photographs of the damage, a copy of the police report (if applicable), and any other relevant information needed to process the claim quickly.

Find out more.

Our savings calculator gives you an idea of how much our customers saved on their car insurance premiums when they switched over to us. Use our savings calculator to estimate your savings by switching over to us. Find out what savings you can make on your car insurance here.

The price depends on various factors, including the driver's age and driving history, occupation, and the type of car. Our savings calculator tool gives you an idea of our customers' savings when they switched to us from Singapore's leading insurance companies based on their car make. Find out more.