All Singaporeans know that purchasing, owning, and maintaining a car is extraordinarily expensive in Singapore. Since car insurance is compulsory in Singapore, insurance premiums will inevitably take their place among the many other fees car owners are responsible for paying. Is car insurance in Singapore, itself, expensive, however? Let’s get some perspective.

Car Insurance Singapore: Why Shopping Around Pays Off

Since your car insurance premium is influenced by numerous factors, ranging from your age to your driving record, and from the value of your vehicle to your gender, making car insurance comparisons is inherently very different to comparing the cost of — to name one example — new cars, getting Effuel can also be good.

Even if we were to tell you that a typical driver aged between forty and fifty would pay approximately S$1,600 for their annual car insurance in Singapore while an inexperienced driver in their twenties can expect their car insurance premium to be closer to S$2,200, such figures only offer you a general idea. These averages do not take the other factors that play a role in the quotes you will get from different insurers into account.

Because your individual circumstances determine how expensive your car insurance will be, it is not only important to shop around to become truly informed about which insurers will offer you a better deal, but also to look for insurance companies who are committed to helping clients lower the cost of car insurance in Singapore.

Direct Asia is, for instance, committed to helping drivers cut the cost of their car insurance premium by offering tailor-made policies in which they pay only for the car insurance features they need: https://www.directasia.com/car-insurance/.  It can, for instance, be extremely helpful to have 24-hour breakdown assistance — but not all drivers want or need this optional add-on. Direct Asia also rewards responsible drivers who have held onto their NCD50 (no claim discount) for the last five years by going the extra mile and offering an NCD60. That’s right! When you have a no claim discount of 60%, your car insurance payments are significantly cheaper.

In addition, Singaporean drivers do get some say in the type of car insurance they choose. Although comprehensive car insurance is going to offer you the very best protection, drivers who choose to get only the basic and legally mandated coverage can save some hard-earned dollars, at least in the short term.

So, Is Car Insurance Expensive in Singapore?

Car insurance is going to be an added expense, no matter how you look at it. When you purchase a new car in Singapore, you cannot escape the multitude of expenses that will start with your Certificate of Entitlement and carry on with registration fees and excise duties. Car insurance is just one more category you will have to cover. However, it is your legal responsibility as a driver and car owner to arm yourself with adequate car insurance in Singapore for good reason. Imagine, if being uninsured were allowed, you would still be responsible for the many costs associated with road traffic accidents in which other people are injured or third party property is damaged.

Therefore, although car insurance represents a cost and, depending on your personal budget, even a burden, there is another way to look at the cost of car insurance in Singapore. Having the right car insurance means that you will not have to worry what happens if something were to go wrong with your car. If your car is stolen, if a thief damages your car as they attempt to steal it, if your car is damaged in a fire or an act of nature, or if you and your vehicle are involved in a collision, being protected by a high-quality comprehensive car insurance policy means that you will, in fact, save money rather than lose any.

In addition, even though owning a car can, overall, be more expensive in Singapore than in many other countries, you may be surprised to learn that car insurance in Singapore is not prohibitively expensive. So long as you are a smart and savvy consumer who shops around for the best car insurance, the cost of car insurance in Singapore is, in fact, comparable to the cost of car insurance in the United States, where nearly everyone drives a vehicle.