What are the types of Car Insurance Coverage in Singapore?
In Singapore, there are 3 types of motor insurance coverage – Comprehensive, Third Part Fire & Theft (TPFT) and Third Party only (TPO). If you are a vehicle owner looking to buy an insurance policy, we hope the following guide can help you in deciding on the right coverage.
A TPO policy offers the least coverage and is also the cheapest option. It offers you protection in situations where you are held responsible for an accident, either third party property damages or third party bodily injuries. These third party liabilities include damages to any property involved during the accident – including vehicles, trees, or even lamp posts, as well as medical/ hospitalisation expenses or other injuries sustained during the accident. This includes loss of wages and loss of use.
If you are looking for insurance coverage for your older or vintage cars, this may be the only coverage offered by some insurers as it is not viable to source for replacement parts in the event of a repair.
This coverage does not protect you, the driver, or damages to your vehicle.
This provides slightly more coverage as compared to TPO policies. Besides the third party liabilities mentioned under TPO coverage, it covers your vehicle for events such as Fire or Theft. If you are a frequent driver who drives outside of Singapore, it is strongly advised that you purchase minimally a TPFT cover as theft frequencies are higher.
However, this policy also does not protect you, the driver.
This is the most superior form of coverage and also the most common. It not only covers the areas mentioned under TPO and TPFT policies, but also offers protection to the car itself. Coverage includes damages to the car body, windscreen and convertible soft top cover too. Besides the policy excess which you have to bear, a comprehensive policy will pay no more than the Market Value of the damages at the time of loss of damage.
If the car is under financing, ie. a bank loan, the bank will usually enforce that comprehensive insurance is purchased for the vehicle. This is because the bank needs to protect their assets, which in this case is the car, which they still have ownership over until the loan is fully paid. The high cost of cars in Singapore means that a large proportion of cars are on on bank loans, making comprehensive policies the most common form of car insurance in Singapore.
While this policy is the most comprehensive cover, some insurer’s default plans may not include medical and personal accident coverage. Do speak to your brokers and ask for these benefits as an add-on.
This table summarises the basic coverage offered by the different plans for your easy understanding:
|Third Party Only||Third Party Fire and Theft||Comprehensive|
|Death or injuries to other parties||Death or injuries to other parties||Death or injuries to other parties|
|Repairs/replacement to other parties properties||Repairs/replacement to other parties properties||Repairs/replacement to other parties properties|
|Fire or Theft losses to your vehicle||Fire or Theft losses to your vehicle|
|Accidental damage to your vehicle|
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