There are 3 types of motor insurance coverage in Singapore– Comprehensive, Third Part Fire & Theft (TPFT) and Third Party only (TPO). If you are looking to buy an insurance policy as a vehicle owner, we hope the following guide can aid you in deciding on the right coverage.
1. Third Party Only (TPO) A TPO policy offers the least coverage, but it is also the cheapest option. It offers you protection in situations where you are held responsible for an accident– either third party property damages or third party bodily injuries. These third party liabilities include damages to any property involved during the accident such as vehicles, trees (even lamp posts), as well as medical/ hospitalisation expenses or other injuries sustained during the accident. This includes loss of wages and loss of use.
If you are looking for insurance coverage for your older or vintage cars, this may be the only coverage offered by some insurers as it is not feasible to source for replacement parts in the event of a needed repair.
This coverage does not protect you, the driver, or damages to your vehicle.
2. Third Party, Fire and Theft (TPFT) This provides slightly more coverage compared to TPO policies. Besides the third party liabilities mentioned under TPO coverage, it also covers your vehicle for events such as Fire or Theft. If you are a frequent driver who drives outside of Singapore, it is strongly advised that you purchase minimally a TPFT cover as theft frequencies are higher.
However, this policy also does not protect you, the driver.
3. Comprehensive This is the most superior form of coverage and also the most common. It not only covers the areas mentioned under TPO and TPFT policies, but also offers protection to the car itself. Coverage includes damages to the car body, windscreen and convertible soft top cover too. Besides the policy excess which you have to bear, this policy will pay no more than the Market Value of the damages at the time of loss of damage.
If your car is under financing, i.e. a bank loan, the bank will usually enforce that comprehensive insurance is purchased for the vehicle. This is because the bank needs to protect their assets, which in this case is the car, which they still have ownership over until the loan is paid fully. The high cost of cars in Singapore means that a high proportion of them are on bank loans, making comprehensive policies the most common form of car insurance in Singapore.
While this policy is the most comprehensive cover, some insurers' default plans may not be inclusive of medical and personal accident coverage. Do speak to your brokers and ask for these benefits as an add-on.
A Quick Summary This table summarises the basic coverage offered by the different plans for your easy understanding:
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