Our team at ValuePenguin is committed to helping you optimize all of your personal finance decisions so that you know you're getting the most value out of your financial products, including car insurance. We analysed the car insurance market in Singapore, collecting real quotes from all the major companies to find the cheapest comprehensive policies currently available so that you can hit the road guilt-free.
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Cheapest Car Insurance Policies in Singapore: FWD, Etiqa and DirectAsia
According to our research, FWD, Etiqa* and DirectAsia tended to offer the cheapest car insurance policies in the country. In general, these three firms' car insurance policies were 18% cheaper than the industry average. Not only that, we found that these three companies generally did not sacrifice coverage for affordability despite their inexpensive rates.
We collected quotes for comprehensive plans from eight major insurers using the sample profile of a 30-year-old single male driver with 2 years' driving experience and a 0% No Claims Discount (NCD). The quotes were calculated on the basis of a standard excess of S$600. In a few cases where a S$600 excess was not available, we picked the closest offering to compare.
As a reminder, you should always remember that the premium you'll receive will depend on many different factors, as every quote is personalized to the customer. However, our findings show that FWD, Etiqa and DirectAsia generally are a good place to start when looking for the cheapest car insurance premiums.
|Company Policy||Cost||Excess||Medical||Personal Accident||Loss of Use||Flood|
|FWD Classic||S$1,799||S$600||S$1,000||S$30,000||S$40/day x 6 days||No|
|Etiqa Private Car Plan||S$1,918||S$600||S$200||S$20,000||S$50/day x 5 days||Yes|
|DirectAsia Value||S$1,937||S$600||+S$16.09 for S$500 coverage||+S$53.65 for S$100,000 coverage||+S$53.65 for S$50/day x 20 days||Yes|
|NTUC Income Drivo Classic||S$2,141||S$600||S$1,000||S$50,000||S$50/day x 7 days||Yes|
|HL Assurance Car Protect360||S$2,762||**S$375||S$1,000||S$20,000||S$50/day x 20 days||Yes|
Cheapest Car Insurance for Women: Etiqa, FWD and DirectAsia
We also analyzed the car insurance market in Singapore to see if the same insurers consistently offered great rates for different kinds of people. After testing the profile of a female driver, we again found that the same three companies, Etiqa, FWD and DirectAsia, offered the cheapest premiums, though Etiqa edged out FWD for the lowest premium on the market. These three companies' car insurance policies in aggregate were nearly 22% cheaper than the industry average. In general, the lower premiums women universally receive from insurance companies reflect their lower statistical likelihood of getting into an accident.
Cheapest Car Insurance for Young Drivers: Etiqa, DirectAsia and Aviva
We found that the cheapest insurance companies for younger drivers in their 20's are Etiqa, DirectAsia and Aviva. On average, these companies' car insurance policies were cheaper than the industry average by 9%.
But drivers in their 20's (and those who held license for fewer than 2 years) need to consider more than just the upfront cost of a policy. Insurance companies have a policy called the "Young and/or Inexperienced Driver Excess," or YIDR. This clause imposes a higher excess payment than normally required on young and inexperienced drivers before the insurance company must pay out its benefits. For example, if your YIDR is S$2,500, and your standard excess is S$600, then whenever you file a claim, you have to pay S$3,100 before your insurance company will pay for anything.
Based on our research, we think that drivers in their 20's should choose among Etiqa, DirectAsia and Aviva based on their preference on cost, YIDR and their age. Etiqa is the cheapest policy among the three, although it imposes a S$2,000 additional excess for drivers under the age of 27. However, DirectAsia insurance is also a superb choice as it is only slightly more expensive than Etiqa with the advantage that it doesn't require you to pay a YIDR at all. Last but not least, Aviva, though several hundreds of dollars more expensive than the cheapest plan offered by DirectAsia, offers a feature-filled plan with an easily avoidable S$2,500 YIDR that only applies if the driver of the vehicle is 24 or younger.
The table below displays the quotes we collected for a 25-year-old male driver with 2 years of driving experience, ranked from cheapest to most expensive. We have also included each company's YIDR policy, which usually also applies to drivers of any age with under 1-2 years of driving experience depending on the plan.
|Etiqa Private Car Policy||S$2,527||S$2,000 for drivers under the age of 27|
|DirectAsia Value||S$2,533||S$0 if designated as a named driver; if not named, not covered by the plan|
|Aviva||S$2,947||S$2,500 for drivers aged 24 and below|
|FWD Classic||S$2,997||S$2,500 for drivers under the age of 27|
|AXA Essential||S$3,110||S$500 for drivers under the age of 27 if designated as a named driver. If not named, S$2,500 if below 27 at AXA Premium Workshops; S$5,000 if below 27 for non AXA premium workshops|
|NTUC Income Drivo Classic||S$3,144||S$0 if designated as a named driver; if not named, S$2,500 if unnamed driver is under the age of 27|
|HL Assurance Car Protect360||S$3,234||S$3,000 for drivers under the age of 27|
Cheapest Car Insurance for Experienced Drivers: FWD, HL Assurance and DirectAsia
For individuals with more years of driving experience, we found that FWD, HL Assurance and DirectAsia led the pack in offering the cheapest premiums, their rates 12% cheaper than the industry average. However, we found that the difference in cost between the cheapest 3 insurers and the others we examined was substantially less than was observed for less experienced drivers. This is great for customers with relatively more driving experience, because it offers them a wider variety of affordable options without a drop in quality or comprehensiveness of coverage. The quotes we collected were for a 40-year-old male driver with 10 years of driving experience and a 50% NCD.
HL Assurance's feature-rich policy, which leads the market with its standard excess of only S$375 and loss of use stipend of S$50 a day for up to 10 days, is actually the second-cheapest policy available for more experienced drivers. FWD is also a great option, as it offers the cheapest premiums while not skimping on features and benefits. For those looking for additional protection, a good alternative could be AIG, as it is only S$43 more expensive than DirectAsia, the third-cheapest policy. But unlike DirectAsia, the AIG plan includes coverage for medical expenses, personal accident benefits, and key replacement, and also provides free access to its NCD Protector Benefit and an excess waiver of up to S$1,000 as long as you install an in-car camera.
In the table below, we have ranked car insurance policies from cheapest to most expensive. To help you see how they differ, we have also included an accounting of their benefits, including coverage of medical expenses, personal accident benefits, loss of use and flood damage. Experienced drivers also receive significantly cheaper premiums than do inexperienced drivers. This is because insurance companies consider experienced drivers to be far less risky to insure and thus want to compete for their business.
|Company Policy||Cost||Excess||Medical||Personal Accident||Loss of Use||Flood|
|FWD Classic||S$697||S$600||S$1,000||S$30,000||S$40/day x 6 days||No|
|HL Assurance||S$737||S$375||S$1,000||S$20,000||S$50/day x 10 days||Yes|
|DirectAsia Value||S$747||S$600||+S$16.09 for S$500 coverage||+S$53.65 for S$100,000 coverage||+S$53.65 for S$50/day x 20 days||Yes|
|Etiqa Private Car Plan||S$762||S$600||S$200||S$20,000||S$50/day x 5 days||No|
|NTUC Income Drivo Classic||S$1,004||S$600||S$1,000||S$50,000||S$50/day x 7 days||Yes|
Cheapest Third Party Car Insurance
Though third party car insurance plans offer less protection and coverage in the case of an accident, they tend to be much cheaper than comprehensive plans. Furthermore, car owners whose cars are older than 10 years may have no choice but to purchase a third party plan, as some insurers won't extend comprehensive coverage to older cars. If you're looking for a third party car insurance policy that offers the best value for your needs and preferences, it can be difficult to find helpful, well-researched information to help guide your decision. To that end, we analysed the car insurance market in Singapore, collecting quotes from top insurers, to find the cheapest Third Party Only (TPO) plans out there.
Cheapest TPO Car Insurance Policies in Singapore: SOMPO, FWD, BudgetDirect
Our study found that TPO car insurance premiums cost an average of S$1,245 in Singapore in 2017. According to our research, SOMPO, FWD and BudgetDirect tend to offer the cheapest TPO premiums and are generally about 12% cheaper than the industry average.
The quotes shown above reflect the driver profile of a 30-year-old single male driver with 2 years' driving experience, 0% NCD and a 2006 Toyota Corolla Altis 1.6.
When shopping for a comprehensive car insurance policy, it is important to look at more factors than simply the price. The cheapest comprehensive car insurance policies tend to leave out crucial features that could be sorely missed in the case of an accident. But TPO plans, as the bare minimum of coverage required to drive legally in Singapore, only cover losses, damages and other costs borne by the third party in the case of an accident as a matter of definition. Therefore, it is actually much easier to compare the value of TPO plans based on how much they cost.
Though the premiums you'll be offered from insurers will vary depending on your driving profile, our current data suggests that SOMPO, FWD and BudgetDirect could be worth a look when you're shopping for a new TPO plan.
Cheapest TPO Car Insurance Policies for Young Drivers: BudgetDirect and SOMPO
We found that insurers charge drivers in their 20s an average of S$1,748 for a TPO car insurance plan, about 40% more than what they charge for drivers in their 30s (S$1,245). Of the insurers included in our study, BudgetDirect and SOMPO seem to offer the cheapest rates to young drivers, their premiums several hundreds of dollars less expensive than the next-closest competition, DirectAsia.
Cheapest TPO Car Insurance Policies for Experienced Drivers: BudgetDirect
Individuals who have a few more years of driving experience and have built up their No Claims Discount (NCD) tend to enjoy much cheaper premiums than less experienced drivers as insurers consider them to be less risky drivers. Our study showed that drivers in their 40s with 10 years of driving experience and a 50% NCD are charged an average premium of S$466, 63% less than the average 30-year old driver with 0% NCD. Among the insurance companies we surveyed, we found that BudgetDirect offered the cheapest TPO car insurance premium to experienced drivers, its price 36% cheaper than the industry average and 27% cheaper than the next-cheapest competitor.
In the course of our research, we collected quotes using all sorts of different driver profiles, testing to see how prices would change if you were male or female, youthful or elderly, a novice driver or a more experienced one, etc. For our research on prices of comprehensive plans, we collected quotes from eight leading car insurance providers in Singapore: AIG, AXA, Aviva, HL Assurance, NTUC Income, FWD, DirectAsia and Etiqa. These companies were chosen based on their popularity with consumers in Singapore as well as the ease of acquiring quotes and detailed information about their plans.
In order to standardize our results, for the bulk of this study, we assumed standard comprehensive coverage, since comprehensive coverage is compulsory for owners driving cars less than 10 years old that are still under financing. Due to the costliness of cars in Singapore, this makes it the most common type of insurance plan bought. We sought to find the cheapest available quote from each company, picking "value" plans if available and adding no optional additional features.
The driver profile we used to get comprehensive car insurance quotes held constant all variables other than what we were testing for. All quotes reflected above are based on the driver profile of an unmarried driver of a 2016 Honda HR-V 1.5***, a first-time car owner with 2 years' driving experience, no claims filed, and 0% NCD (No Claims Discount). He/she works indoors as a professional.
For our research on third party only (TPO) car insurance, we collected quotes from six leading car insurance providers in Singapore that offer online quotes for TPO car insurance plans: AXA, DirectAsia, Etiqa, FWD, SOMPO, and BudgetDirect. Industry leader AIG has not been included as they no longer offered an online quote service as of the time of this research; Aviva, another popular Singapore insurer, is not included as it sells only comprehensive car insurance plans. The driver profile we used to get quotes held constant all variables other than what we were testing for (age, driving experience and NCD%). All quotes reflected above are based on the driver profile of an unmarried male driver of a 2006 Toyota Corolla Altis 1.6 with no recent claims. We opted to collect quotes for a car already over 10 years old as the majority of Singaporeans in the market for TPO car insurance are insuring older vehicles.
*Etiqa quotes reflected include a 25% discount available if you purchase their policy on Friday. This promotion is running through the end of May 2017.
**HL Assurance's policy has a standard excess of S$375 as long as you get your car repaired at one of HL Assurance's authorised workshops. If you get your car repaired at any other workshop, you must pay an excess of S$750.
***The Honda HR-V 1.5 was chosen due to the popularity of SUVs, of Honda, and of the HR-V 1.5 in Singapore. We used the Honda HR-V 1.6 for HL Assurance's quote, as the 1.5 was not available to select.
****The estimates here are ValuePenguin's alone, and have not been reviewed, approved or otherwise endorsed by the insurance providers.