Car Insurance in Singapore: What to Know
Car insurance is compulsory in Singapore: at a minimum you need third-party cover for death and bodily injury. The three levels are Comprehensive, Third-Party Fire & Theft, and Third-Party Only. A No Claim Discount rewards claim-free years, rising 10% a year to a 50% maximum. Compare on coverage, excess and workshop terms, not just the premium.
In Singapore, motor insurance is compulsory — it is an offence to drive without it. At a minimum, your policy must cover third-party liability for death and bodily injury. Beyond that legal floor, you choose how much of your own car and risks to cover.
The three coverage levels
| Level | What it covers | Best for |
|---|---|---|
| Comprehensive | Third-party liability plus damage to your own car, fire and theft | Newer or financed cars |
| Third-Party, Fire & Theft (TPFT) | Third-party liability plus fire and theft of your car | Older cars with some value |
| Third-Party Only (TPO) | Only injury/damage you cause to others | The legal minimum |
Comprehensive is the most common for cars still worth protecting. As a car ages and its value falls, some owners step down to TPFT or TPO — but then repairs to your own car are not covered.
The No Claim Discount (NCD)
The No Claim Discount rewards you for claim-free years by reducing next year’s premium. It builds up like this:
NCD rises 10% per claim-free year to a 50% maximum. Source: GIA.
| Claim-free years | NCD |
|---|---|
| 1 | 10% |
| 2 | 20% |
| 3 | 30% |
| 4 | 40% |
| 5 or more | 50% (maximum) |
Two useful points: your NCD is portable — you can carry it when you switch insurers — and many insurers offer an NCD-protector add-on that lets you make one claim without losing your discount. A claim without protection usually cuts your NCD at renewal.
What else moves the premium
- Excess: the amount you pay out of pocket per claim. A higher voluntary excess lowers the premium but costs you more if you claim.
- Named / young or new drivers: adding inexperienced drivers typically raises the premium or adds a per-claim excess.
- Workshop choice: “authorised workshop” policies let you use any workshop; cheaper “approved workshop” policies restrict you to the insurer’s panel.
- Car and usage: make, model, engine size and annual mileage all factor in.
How to compare
Don’t shop on the headline premium alone. A cheaper policy may carry a higher excess, a restricted workshop list, or less generous coverage. Compare like for like on coverage, excess, workshop terms and add-ons. Insurance is also a real line in the true cost of owning a car.
Related
General information on car insurance, not financial or insurance advice. Terms vary by insurer; read the policy wording and confirm details before buying.
Sources
- No Claims Discount (NCD) — how it works — General Insurance Association of Singapore (as of October 2026)
- Motor insurance basics (coverage types and compulsory cover) — General Insurance Association of Singapore (as of October 2026)