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Third Party vs. Comprehensive Car Insurance in Singapore: Which Is Right for You?

Why Choosing the Right Car Insurance Matters in Singapore

Car insurance in Singapore isn’t just a legal requirement. It’s a crucial financial decision. With the high cost of vehicle ownership (thanks to rising COE prices and maintenance fees), picking the wrong policy could leave you either underinsured or overpaying for unnecessary coverage.
 
In this guide, we’ll break down the differences between third party and comprehensive car insurance in Singapore, compare average costs, and help you decide which option best suits your needs and driving habits.

What Is Third Party Car Insurance?

Third-party only car insurance (TPO) is the most basic form of coverage available in Singapore and the minimum legal requirement for all drivers.

What It Covers:
Damage or injury caused to other people or vehicles
Legal liabilities resulting from an accident you caused
What It Doesn’t Cover:
Repairs to your own vehicle
Theft, fire, or natural disaster damage
Personal accident coverage or windscreen damage
Because it offers limited protection, TPO policies are generally the most affordable option, often chosen for older vehicles or by drivers on a tight budget.
Tip

Best for: Vehicles over 10 years old, low resale value cars, infrequent drivers.

What Is Comprehensive Car Insurance?

Comprehensive car insurance provides all the benefits of third party insurance, plus coverage for your own vehicle.

What It Includes:
All third party benefits
Repairs to your own car, even if you’re at fault
Theft and fire protection
Windscreen and flood damage
Medical expenses and personal accident cover
Optional benefits like No Claim Discount (NCD) protection and 24/7 roadside assistance
Though more expensive, comprehensive insurance offers extensive protection, making it ideal for newer, financed, or high-value vehicles.
Tip

Best for: New cars, cars under financing, daily commuters, safety-conscious drivers.

Third Party vs. Comprehensive: How to Choose the Right Policy

Many comprehensive plans offer customizable add-ons. While optional, some of these benefits offer significant value.

Ask Yourself:
How old is your car?
Older cars may not justify the higher cost of comprehensive coverage.
Is your car under a loan?
Most financing arrangements require comprehensive coverage.
How often do you drive?
The more time on the road, the higher the risk—and the greater the need for protection.
How much risk can you tolerate?
If a major repair bill would cause financial strain, comprehensive may be the smarter option.
Quick Decision Guide:

Third Party vs. Comprehensive: How to Choose the Right Policy

While TPO may seem like a money-saver, cutting corners on coverage can backfire, especially during accidents or emergencies.

Real-Life Scenarios:
A TPO-insured driver collided with another car. The other driver never submitted a claim, so their insurer didn’t pay out. Result? The TPO driver paid $4,000 out of pocket.
Another driver with a 12-year-old car found limited options for comprehensive coverage, being forced to choose TPFT with higher excess and fewer workshop choices.
Tip

Underinsuring could cost you more than you think.

Add-Ons That Can Enhance Your Coverage

Many comprehensive plans offer customizable add-ons. While optional, some of these benefits offer significant value.

Recommended Add-ons:
NCD Protection: Keeps your NCD intact even after one claim.
Windscreen Coverage: Covers replacement or repair costs.
Authorised Workshop Access: Choose trusted repair centres.
24/7 Roadside Assistance: Towing, jump-starts, and more.
Flood/Natural Disaster Coverage: Useful with Singapore’s erratic weather.

Quick Comparison: Coverage at a Glance

Frequently Asked Questions (FAQs)

Choose Insurance That Fits Your Lifestyle

The right car insurance isn’t just about price. It’s about protection, peace of mind, and preparedness. If you’re driving a newer car, using it daily, or financing it, comprehensive coverage offers unmatched value.
 
If you’re behind the wheel of an older vehicle or rarely drive, third party or TPFT may be sufficient, but stay in the know about the risks.

Tip

Make an informed decision today. Contact Plutus to get a competitive quote for your car insurance policy.

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