Budget Direct Car Insurance Review: Should You Get It?

Budget Direct offers a car insurance plan that sets itself apart from other insurers by giving you total control over which elements you include in your plan.

Editor's Rating

4.0

Good for

  • Low-risk drivers seeking the cheapest possible premiums
  • People seeking a highly customizable plan
  • People seeking a great deal on TPO and TPFT car insurance

Bad for

  • People willing to spend a little more to ensure maximum peace of mind
  • Higher-risk drivers

Budget Direct Car Insurance Review: Should You Get It?

Budget Direct offers a car insurance plan that sets itself apart from other insurers by giving you total control over which elements you include in your plan.

Good for

  • Low-risk drivers seeking the cheapest possible premiums
  • People seeking a highly customizable plan
  • People seeking a great deal on TPO and TPFT car insurance

Bad for

  • People willing to spend a little more to ensure maximum peace of mind
  • Higher-risk drivers

Editor's Rating

4.0

Budget Direct Car Insurance Review: Should You Get It?

Editor's Rating

4.0

Good for

  • Low-risk drivers seeking the cheapest possible premiums
  • People seeking a highly customizable plan
  • People seeking a great deal on TPO and TPFT car insurance

Bad for

  • People willing to spend a little more to ensure maximum peace of mind
  • Higher-risk drivers
Insurance

Budget Direct Insurance, which launched in Singapore in January 2017, promises market-beating low car insurance premiums. But what do you need to know about their policy to know if they're worth a closer look? Our team at ValuePenguin took a look at their car insurance plan to see if you could stand to save big by choosing to insure your vehicle with Budget Direct Insurance.

ProsCons
  • Among cheapest possible comprehensive plan premiums for the average driver as well as experienced, low-risk drivers
  • Premium prices are expensive for higher-risk driver profiles (younger, less experienced drivers)
  • Highly customizable plans to choose exactly what you want to pay for
  • Lowest-tier plan does not automatically include convenience/comfort benefits often included in other insurers' lowest-tier plans
  • Unique discount of about 5.5% if you agree to drive only in Singapore
  • As a very recent newcomer to Singapore's car insurance market, Budget Direct has yet to develop a longstanding reputation for service
  • Among the cheapest TPO and TPFT car insurance premiums on the market

What Makes Budget Direct's Car Insurance Plan Stand Out?

Budget Direct offers a car insurance plan that sets itself apart from other insurers by giving you total control over which elements you include in your plan. This results in unbeatable premium prices for the right customer, particularly for drivers with more than a few years of driving experience under their belt. It is this combination of customer choice and potential affordability that makes Budget Direct stand out and makes it it a worthwhile option for experienced, safe drivers on a budget.

While many other insurers offer a plethora of optional, peace-of-mind features, a cost-conscious consumer in Singapore can be hard-pressed to find the lowest possible car insurance premium even if it means compromising on the features like coverage for personal accident benefit, medical expenses, and loss of use. If you're truly looking to cut costs and pay as little as possible to insure your car, the mandatory inclusion of these elements in most car insurance plans could be a source of frustration. Budget Direct Insurance caters to this type of demand by giving you the freedom to determine exactly what you want to pay for.

The basic Budget Direct comprehensive car insurance plan automatically includes coverage for third party property damage, third party death or injury, and your own car's losses or damages. After that, they leave it up to you to decide which additional features you want in your plan. This freedom extends to personal accident benefits; medical expense coverage; a loss of use transport allowance; and 24-hour roadside assistance. In addition to the aforementioned relatively standard features, you can also pay to add an NCD Protector feature, the ability to choose your own workshop and an overseas emergency allowance feature. Budget Direct also offers additional opportunities to save by discounting your premium if you go paperless, agree to drive only in Singapore or sign up for the Named Driver plan (restricting coverage to only drivers you name on your policy).

What this flexibility results in is a highly affordable car insurance plan – for certain drivers. We found that Budget Direct's most basic car insurance plan had the cheapest premium of all insurers we surveyed for our sample driver profile of a 45-year-old male with about 10 years of driving experience and a 50% NCD. Even with all the above features added in, Budget Direct's premium was still among the cheapest available, challenged mainly by Aviva and FWD. So if you're a seasoned driver with a long record of safe driving, Budget Direct could be a great option to help you minimise costs.

Drivers in the market for third party car insurance plans might also consider taking a closer look at Budget Direct, which our research has shown tends to offer extremely competitive premiums for TPO and TPFT policies.

Drawbacks to Budget Direct's Car Insurance Plan

While Budget Direct offers extremely low premium prices to low-risk drivers with a substantial amount of driving experience, its comprehensive plan premiums are expensive for higher-risk drivers, including those with fewer years of driving experience and younger drivers. For our sample driver profile of a 25-year-old male with 5 years' driving experience and a 0% NCD, Budget Direct's premium was among the most expensive among insurers surveyed. As a result, Budget Direct's just-the-essentials policy may not be a high-value pick for people who fit into higher-risk categories. Customers who are less sensitive to price and may be looking for built-in perks or value-added optional features may also find Budget Direct's relatively minimalist plan lacking.

One final thing to consider is that because Budget Direct is so new to the insurance market, launching in January 2017, it has not had much time to establish a reputation for good, reliable customer service. Thus, it may be difficult to find much information about this insurer yet.

Features and Benefits Included in Budget Direct's Car Insurance Plan

FeaturesCoverage
Flood damage coverage?Yes
24 hr roadside assistancePay extra S$26.75
Can you choose your own workshop?For an extra ~18% on your pre-NCD premium
Personal accident benefit for PolicyholderPay extra S$32.10 for S$20,000 of coverage
Overseas emergency allowancePay extra S$26.75 to cover towing fees up to S$1,000, phone calls up to S$100, return home costs up to S$200 per person
NCD Protector FeatureFor an extra ~11% on pre-NCD premium
Medical expensesPay extra S$21.40 for coverage up to S$500
Towing costsUp to S$200 in Singapore, up to S$500 outside Singapore
Car accessoriesNo
Unlimited coverage for third party death or injuryYes
Coverage for third party damageUp to S$5,000,000
Daily transport allowance while car is repaired (loss of use)Pay an extra S$53.50 for S$50 for up to 10 days
Courtesy car if car is written off or stolenNo
S$21.40 discount for going paperless
Approximately 6% discount on premium for agreeing to drive only in Singapore

How does Budget Direct's Car Insurance Plan Compare Against Other Insurers' Plans?

We compared car insurance premiums from major Singapore insurers and found that Budget Direct offers among the cheapest car insurance premiums for more experienced drivers. The following quotes are based on the driver profiles of a 45-year-old single man with 10 years of driving experience and a 50% NCD driving a 2016 Toyota Corolla Altis 1.6. Please remember as you are shopping for a car insurance plan that premiums you receive may differ depending on your driver profile and vehicle.

This graph compares the cost of car insurance premiums for individuals with more years (~10) of driving experience. BudgetDirect offers the cheapest premium of insurers surveyed for this driver profile (45-year-old unmarried man with 10 years of driving experience and 50% NCD).
Comparing car insurance premiums for highly experienced drivers

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