It is until you own a car that you will realize risks lurk around every corner. Besides the obvious threat of car accidents, you can cause damage to another person or their property or, worse, your car can be stolen or burnt in a fire. In a country where the cost of owning a car is already high, these scenarios can cause the costs to quickly add up to a substantial amount than an average person can manage. But with types of car insurance in Singapore, you don’t have to worry as your insurer can shoulder part or all the costs that come with these uncertainties.
If you are new to purchasing car insurance, this post will discuss the types of car insurance policies you can buy in Singapore, as well as plans to help you make an informed purchase decision.
Types of car insurance in Singapore
There are three main types of car insurance in Singapore. Understanding what each type covers can help first-time car owners purchase a policy that meets their needs in the best way possible.
Third Party Only (TPO): This is the most basic car insurance plan and offers the least cover to get you on the road. As the name suggests, third party only car insurance covers only damage, injury, or death to a third party or their property, not damage to your car. For instance, if you are involved in an accident and end up damaging someone’s property, your insurer will compensate the third party’s damaged property, but you will have to fund your car repairs from your pocket. It is ideal for drivers on a budget or those with old cars that they might consider scraping in lieu of repairing.
Third party, fire, and theft (TPFT): This policy comes slightly above TPO in terms of coverage. Besides covering damage to the third party, it covers theft and fire damage to your car, which makes it an ideal option for drivers who want to extend beyond basic coverage to include losses due to fire and theft.
Comprehensive car insurance: Comprehensive car insurance covers virtually everything, including damage to your own car. Although it tends to cost more than other types, it is the most common type of car insurance in Singapore. This is mainly because it gives car owners peace of mind, knowing that their expensive cars are protected. Further, comprehensive policies allow drivers to enjoy carefree driving even on busy roads.
In Singapore, cars are generally expensive, which makes it extremely important to purchase a car insurance policy that protects your car in the best way possible. The three types of policies offer varying levels of coverage, but, importantly, they help drivers get peace of mind when on the roads.
There are three types of car insurance from which Singaporeans can choose. If it is your first time purchasing a car insurance policy, hopefully, this post will help you understand the available options so you can invest in a policy that meets your needs and budget. Generally, it is advisable for you to protect your car with a comprehensive car insurance plan. This is understandable considering that cars are very expensive in Singapore.