How Does Car Insurance Work In Singapore?

No matter how easy you think getting a car insurance policy is, there are various things that need to be considered before you choose a company and start paying its premium. It is, after all, your hard-earned money that you have to pay, annually or monthly, depending upon your contract with the insurance company. Therefore, checking various things before you decide to go ahead with a specific company is essential.

Car Insurance in Singapore

While various people believe car insurance premium fee needs to be paid annually, there are companies that let you bear the expenses on a monthly basis. Depending upon your comfort and budget, you can choose between annual, one month, six months, and even nine-month car insurance policy. It all depends upon your requirement as well. While some people are comfortable with annual payments, there are those as well who find it easy to make monthly investments, or for a shorter duration.

If you are new to Singapore and you think you can avoid getting a car insurance policy, you must know that not having it is not an option. If you live in this country, you need to insure your car if you own one. The majority of Singaporeans have their cars and thus, they have an active car insurance policy. Driving without such a policy and not presenting the essential insurance papers or documents when required is considered illegal. If you want to be ethical in this country, do not own a car without an active car insurance policy.

How Does A Car Insurance Work in Singapore?

So, how does car insurance work in Singapore? No matter where you travel within the country, you do not worry about the consequences of an accident, since you know you, your loved ones (and your car) are safe. To relieve the stress of damage to the car, Singapore Government has made such a policy compulsory.

The good news is that such an insurance policy, sometimes, covers the medical bills in case you, or the passengers in your car, are physically hurt or injured during the car accident. This generally happens when your car has met with an accident with someone else’s and the car is uninsured, along with the driver.

Not only this, you are covered for any kind of injury caused to the other party. This includes medical costs caused by car accident, property damage, fire, theft, etc. There are three different kinds of car insurance policies, which you must learn before you opt for one:

  1. Liability Insurance Policy – this covers the repairing costs of the third party’s property that have been damaged during the accident, along with their medical and treatment expenses.
  2. Comprehensive Insurance Policy – this covers the insured person against the damages caused to own as well as the third party, during the accident.
  3. Collision Insurance Policy – covers vehicle accidents, wherein the insurance company deducts your saved premium fees and pays your losses.

Now that you know how the policy works and how can you choose the best one of yourself, you might wonder how to renew car insurance Singapore. The good news is that there is something called auto-renew, especially if you have paid for the insurance online. You do not have to manually pay the money for your premium if you have ticked the box for ‘auto-renewal’, since the money automatically gets deducted when the time of the payment arises. If you do not want to take the risk of auto-renewal, you can count on the auto generated monthly or annual reminders you receive from the company. Once you receive the email, renew the policy by paying the premium and enjoy the benefits.


To conclude, one must not travel by car without a proper car insurance policy in Singapore. Firstly, it is compulsory and thus, you should not take it for granted. Secondly, it allows you to travel without the stress of bearing the damage, in case of an emergency. May God forbid, if your car meets through an accident while traveling, it becomes your best friend. The majority of the expenses are taken care of by the insurance company, depending upon the policy you’ve opted for.

By the way, adding to car insurance, you have to consider buying travel insurance. If you are wondering about how to choose travel insurance Singapore you will have to find out your priority and the frequency of traveling. It is not that people who do not trust their driving skills opt for a specific kind of travel policy; it is all dependent on your affordability, choice and preference. Also, if someone is suggesting a specific kind of a car insurance policy to you, learn more about it – guidance in such subjects should always be welcomed.