All car owners should know that it is mandatory to get a car insurance in Singapore. There are 3 different types of insurance coverage available – “Third Party Cover”, “Third Party, Fire and Theft” and “Comprehensive Cover”.
Third Party Cover
Third Party Cover is the entry-level policy that provides the least coverage. It covers the driver’s legal liability for damage to other car(s) or property. It also covers the driver’s legal liability for death or injuries to passengers and third parties caused by his/her negligence. It does not cover driver’s own car damages in an event of an accident. Third party policy generally cover accidents that happen in Singapore, West Malaysia and 80km of Thailand from the borders of Malaysia.
Third Party, Fire and Theft
In addition to what the entry-level policy covers, this policy also cover fire and theft. With this policy, you can make a claim if your car has been damaged by fire and/or theft. Although damage by theft is claimable, we strongly advise everyone to keep expensive belongings out of sight and always remember to lock your car doors before leaving.
Comprehensive Cover
This is the most common policy that provide the broadest protection for the insured. This policy covers whatever third party, fire and theft covers plus your own car damages in an event of an accident. Depending on the insurer, some would provide car replacement, own workshop for damage repairs and coverage for natural disaster like floods.
You will need to take up comprehensive insurance coverage if you are on a car loan as it is a requirement by most of the banks. Nevertheless, it is always advisable to get comprehensive insurance coverage regardless of whether you are on a car loan as it not only covers third-party damages but also damages to your car when you are the party at fault in an accident. We believe it is important to get the most out of your insurance especially in Singapore where cars are expensive. At Speed Credit, we do all the work and help you to source for the most coverage at the most competitive price. Get a free quote from us today.