6 Cheapest Car Insurance Plans in Singapore
Auto insurance is mandatory in Singapore. It’s a good thing, then, that there’s a slew of different providers offering plenty of choices for drivers to choose from.
Just like with other types of insurance, there’s always the danger of buying more insurance than you need. This means you’ll simply be wasting your money on needlessly expensive premiums.
To help you cover your car insurance needs and avoid high premiums, we’ve put together a list of six of the most affordable car insurance policies with comprehensive coverage that should suit the needs of most drivers.
Aviva Etiqa NTUC Drivo MSIG HLAS FWD
Annual premium* S$1,649.01 S$1,869.56 S$1,935.16 S$1,961.76 S$1,979.34 S$2,137.77
NCD protector Deduction of 10% per ‘at-fault’ claim (lower than other insurers) Yes, upon renewal Yes, with NCD 30% or aboveFree NCD protection after NCD 50% of 2 consecutive policy years Yes, upon renewal with NCD 30% or above Yes, upon renewal Auto enrolment into Lifetime NCD Protector at NCD 50%
Workshops Any Authorised only Any Any Any Approved only
Standard excess Windshield: S$0Young and inexperienced driver: S$0 Adjustable excess for policyholderS$500 for unnamed driverS$2,000 for elderly, inexperienced or young driverS$100 per claim for windshield S$600 per claimS$100 per claim for windshieldUnnamed driver excess: S$500 to S$2,500 S$500 per claimS$100 per claim for windshieldYoung/inexperienced driver: Additional S$3,000 S$600 per claim (halved for authorised workshops)S$100 per claim for windshieldS$3,000 excess for damage caused by young drivers S$750 per claimS$100 per claim for windshieldS$2,500 additional excess for damage caused by drivers under 27
Cover for car damage, theft or write-off Up to market valueFor cars 2 years or younger: Brand new car replacement Up to market value Up to market value Up to market valueFor cars 12 months or younger: Up to S$100,000 new-for-old replacement Up to market valueUp to S$1,000 for accessories Repairs or replacement
Personal accident cover Up to S$100,000 Medical expenses: Up to S$5,000 Up to S$50,000 for main driverMedical expenses: Up to S$1,000 Up to S$50,000Medical expenses: Up to S$1,000 Policyholder: Up to S$100,000Authorised driver or passenger: Up to S$50,000Medical expenses: Up to S$1,000 Policyholder: Up to S$20,000Authorised driver or passenger: Up to S$10,000Medical expenses: Up to S$1,000 Driver: S$30,000Passenger: S$10,00 eachSurviving children in case both parents are affected: S$250,000Medical expenses: S$1,000
Third-party liability Property damage: UnlimitedDeath or injury to third-party: UnlimitedLegal costs: Unlimited Property damage: UnlimitedDeath or injury to third-party: UnlimitedLegal costs: S$2,000 Property damage: Up to S$5 milDeath or injury to third-party: Unlimited Property damage: Up to S$5 milDeath or injury to third-party: Unlimited Property damage: Up to S$5 milDeath or injury to third-party: Unlimited Property damage by car: S$5 milLegal costs: S$3,000
Other notable benefits: 5% discount upon renewal with 50% NCD n/a n/a Loan protection benefit: Up to S$100,000 n/a n/a
* Comparison profile: 43 years old, single, male driver of Suzuki Swift 1.5A registered in 2018, two years’ driving experience with clean driving record, going for comprehensive coverage
Aviva Car Insurance stands out as the provider with the lowest premium for private car insurance among the six.
This usually means a corresponding reduction in coverage and benefits, but we were surprised to find this wasn’t the case.
What makes Aviva Car Insurance (Prestige) so attractive is the waiver of excess for windshield repairs (normally S$100) and for young and inexperienced drivers (S$2,500 to S$3,000) – this already provides instant potential savings in case of an accident.
Additionally, whereas other insurers deduct up to 30% of your NCD for ‘at-fault’ claims, Aviva deducts just 10%. Don’t underestimate the effect of this difference – by imposing a less harsh deduction, you not only save money, but will also find it easier to get back to the maximum 50% discount.
Another notable advantage is the 24-month eligibility period for getting a brand new replacement for your car. Other insurers limit this to just 12 months.
The auto insurance plan with the second-lowest premium on our list is Etiqa Private Car Insurance (Comprehensive).
What makes this plan attractive is that you can choose your own level of excess for any ‘at fault’ claims. Choosing a higher excess will lower your premiums, helping you save more money.
However, if you do get into an accident and are found to be at fault, you’ll need to cough up the higher excess. Hence, be sure to hedge your risk by choosing an excess level you can comfortably afford.
Further savings offered by this plan comes in the form of the vulnerable driver excess, which is set at S$2,000 (compared to S$2,500 or more for other insurers).
While this lower excess presents potential savings, do note that the definition is broader than most – it also includes elderly drivers, in addition to the conventional young and inexperienced classifications.
NTUC Drivo is among the most popular auto insurance plans among Singaporeans, thanks to its combination of comprehensive coverage, competitive benefits and affordable premiums.
What you’ll get is a well-rounded plan which should cover most of your needs, at low- to mid-range premiums.
Sticking with NTUC will also net you some more savings down the road. If you maintain at least two consecutive years of 50% NCD, you’ll automatically be entitled to free NCD protector on your next renewal.
This means you will no longer need to pay for the NCD protector rider, helping you pare down your premiums even more.
As a bonus, policyholders also gain the services of the vaunted Orange Force, NTUC’s own in-house fleet of highway emergency assistance specialists.
No matter how hardened a driver you are, having the ability to call for on-site help should you get into an accident is surely a comforting prospect.
MSIG MotorMax Plus isn’t the cheapest auto insurance plan, ranking fourth on our list.
However, it’s not very much more expensive than its peers, but offers amongst the highest benefits for personal accident, loan protection and damages.
The policyholder will gain S$100,000 coverage for personal accidents, while any authorised drivers and passengers are covered for S$50,000.
There is also a loan protection benefit of up to S$100,000, which is useful for paying off any remaining car loans should you become unable to do so.
And if your insured vehicle is less than 12 months old, you are also entitled to a new-for-old replacement of up to S$100,000 in case of extensive car damage.
Having these benefits can allow you to cover crucial gaps in your finances.
Unlike most other car insurance plans, HLAS Car Insurance doesn’t try to lock you into using only authorised workshops for repairs and maintenance.
Instead, you have complete freedom to choose any workshop you want, but you can get a 50% discount on your applicable excess, should you choose an authorised workshop.
Combine this with the freedom to set the excess you want for claims, and you have a car insurance policy that can help you save money when it matters.
You can save on your premiums by setting a higher excess. Then, when the need arises, send your car for repairs at an authorised workshop to pay only half of your excess. That’s a win-win for you.
FWD emerged as the most costly auto insurance plan in our ranking, but that doesn’t mean it’s not worthy of your money.
First off, it’s important to note that premiums for this plan is only S$164 more expensive than the next closest competitor – which works out to barely S$14 per month.
Crucially, the plan provides coverage for all the essentials, with competitive benefit levels that can comfortably match up to its peers.
And it even outshines them at times. Take for example the high legal cost coverage of up to S$3,000 in case of third-party claims – this is the second highest for the benefit on the list.
Also, FWD offers a one-time payout of S$250,000 for surviving children if both parents die or are permanently disabled in a car accident. No other plan on our list offers a similar benefit.
Protected up to specified limits by SDIC.
Note: This is only product information provided. You may wish to seek advice from a qualified adviser before buying the product. If you choose not to seek advice from a qualified adviser, you should consider whether the product is suitable for you. Buying an insurance product that is not suitable for you may impact your ability to finance your future healthcare needs.
If you decide that the policy is not suitable after purchasing the policy, you may terminate the policy in accordance with the free-look provision, if any, and the insurer may recover from you any expense incurred by the insurer in underwriting the policy.
Read these next:3 Most Value-For-Money Cars You Can Get In Singapore5 Things to Consider Before Buying Car Insurance in SingaporeNo Claims Discount (NCD) Protector: Should You Buy Yourself This Car Insurance Rider?11 Fun (and Lesser-Known) Facts About Car Insurance For You Car Owners7 Best Car Insurance Plans in Singapore (September 2021)
By Alevin ChanAn ex-Financial Planner with a curiosity about what makes people tick, Alevin’s mission is to help readers understand the psychology of money. He’s also on an ongoing quest to optimise happiness and enjoyment in his life.
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Rose Ng 28/09/2021
Luckily have 6 cheapest car insurance plans in singapore to buy!
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