How to choose the right car insurance: comprehensive vs. third-party insurance

In Singapore, a modest-sized family vehicle costs in the region of $100,000 inclusive of Certificate of Entitlement (COE) and road tax. An asset requiring such a huge financial outlay – and that’s before factoring in petrol and maintenance costs – should rightly be protected against loss and damage, which is why it is compulsory to renew your car insurance every year.

When you compare insurance policies, you may be tempted to opt for the cheap car insurance options – typically third-party insurance. However, when you take into account your own driving habits, as well as the unpredictable weather conditions and other complications that affect driving in Singapore, you may find that a comprehensive car insurance policy better suits your needs.

In this article, find out more about the differences between comprehensive or third-party insurance. If you are buying your car insurance online, you will need to consider the pros and cons of each insurance type when conducting your own car insurance comparison.

Comprehensive Car Insurance: What Does It Cover?

As its name suggests, comprehensive car insurance covers a very broad scope: the repair or replacement of your own vehicle upon damage or loss, as well as claims from third parties for damage to property and persons (which may include death, injury, and medical costs).

Besides vehicle accidents, comprehensive car insurance also provides protection against natural disasters – flooding, falling trees – as well as damage caused by vandals.

When buying a new car, comprehensive car insurance seems a clear choice: with the maximum possible coverage against damage to your own vehicle, you have much more peace of mind when driving.

If you’re buying an older vehicle, the premium you pay for comprehensive car insurance will take into account the number of years left on the COE, and as such will be lower than the premium for insuring a new car. However, do note that for cars over 10 years old, certain insurance providers will insure them only on a case-by-case basis.

What Does Third-Party Car Insurance Cover?

Third-party car insurance – also referred to as third-party-only coverage – meets the minimum legal requirements for driving under Singapore law. As such, this is an option preferred by many experienced drivers whose cars are near the end of their COE lifespan, or who are buying a second-hand car.

This policy type covers you, as the driver, for any liability for damage caused to third-party property as well as any injury or death to third-party individuals. In a vehicle accident, if you are injured or your vehicle is damaged, third-party car insurance doesn’t provide any coverage or compensation for you or your vehicle.

A popular type of third-party car insurance also includes protection against fire and theft.

How Much Is Car Insurance For My Needs?

Besides the age and model of your car, your own age, gender, driving record and years of driving experience will impact what you pay for car insurance. Compare the available options with this in mind, and you will be best equipped to make an informed decision.

It pays to compare the various types of car insurance plans in the market. Some insurers offer attractive and unique benefits with the customer in mind. For example, FWD is the only insurer that lets drivers who have already reached 50% No Claim Discount (NCD) and you can keep it for life, no matter what. Visit our product page to get a quick price quote for comprehensive insurance with lifetime 50% NCD guaranteed.