Saving on Car Insurance

It is compulsory in Singapore for a car owner to purchase insurance cover for his/her car. Types of plans include:

• Third party only
• Third party, fire and theft
• Comprehensive
  

Third party only covers the insured person if third parties such as passengers are killed or injured. It also covers damage to property belonging to third parties.

Third party, fire and theft is similar to Third party only except that it also provides protection for the insured's own vehicle against loss or damage resulting directly from fire or theft.

Most car owners opt for the comprehensive plan, as it gives the widest protection.
Besides the coverage provided in the other two types of motor plans, it covers damage to the insured's vehicle as well as to other vehicles that the insured person uses with the permission of the owners.

Shop around for the cheapest car insurance as different companies offer slight variations of the plans with different excess, premiums, etc. It is possible to get a insurance premium that is few hundred dollars cheaper a year but of course with a higher excess (meaning that you will have to pay for the first few thousand or hundred dollars). Generally speaking, the higher the excess that you have to pay, the lower the insurance premium.