While it is easy to get a quote for car insurance in Singapore from SGmart, one of the leading insurance comparison websites, it is important to decide which type of insurance is required for the car. There is a significant difference in the car insurance premium which has to be paid,depending on the coverage which is required for the car. In Singapore it is mandatory for vehicle owners to purchase car insurance, yet many car owners would not like to spend more money on the car insurance if they have a second hand car or do not use their car. Some of the different types of car insurance options are discussed below.
The cheapest option for car insurance is Thirty Party only (TPO). This will only provide coverage to the car owner if the vehicle will damage property belonging to others like the walls, fencing or cause injuries to others like pedestrians. The owner will not get any coverage for the damage caused to his car, or injuries if he is responsible for the car accident. This is the preferred option for car owners who do not use their car often or have an inexpensive car. There are also many who are using a second hand car, which they wish to sell, so they will usually opt for TPO insurance
Another insurance option which provides more coverage for the car owner, is Third Party, theft and fire (TPFT). In addition to paying for any damage which is caused to third parties due to the accident of the car owner, he will also get compensation if the car is stolen or it catches fire. The premium for TPFT is usually more than TPO only. In this case also the car owner will also have to pay all the expenses for the damage to the car caused by the accident, he will be only compensated if there is a fire or the vehicle is stolen. It is recommended for people living in areas with high crime rates.
The comprehensive car insurance policy will pay for all kinds of damage, yet the premium amount will be the highest. The car owner can get compensation for any accident resulting in damage to the car, car owner or even the damage due to natural disasters like flooding or hurricanes. Additionally this will also provide compensation to the passengers in the car if they are injured due to the accident. If the car owner has taken a loan while purchasing the car, the bank will make it mandatory that the car owner purchases a comprehensive policy, so that the lender will get compensated if the car is destroyed or damaged.
A comprehensive policy is typically recommended if the car owner wishes to reduce the expenses if he is involved in any kind of accident, since the insurance company will pay for a large part of the expenses. Usually inexperienced drivers and those who are not confident of their driving skills will opt for a comprehensive policy. Those who use their car daily for commuting to the workplace will often choose this option, since they get a replacement vehicle if their car is damaged. Luxury or expensive car owners also prefer a comprehensive policy which will pay for expensive repairs.