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● We know, we know, cars are expensive in Singapore. Owning a car means taking out a , paying , and… getting car insurance. Car insurance is compulsory in Singapore, typically costing between $800 and $2,000. However, the good news is that several car insurance providers offer comprehensive coverage without having you break the bank. Car insurance protects you in case of accidents, and for new drivers, it gives you peace of mind as you gain experience. If you’re looking for more affordable coverage, here are some of the cheapest options in Singapore. For simplicity, we will use Toyota Vios 1.5 (A), registered in 2023 and manufactured in 2022, to compare prices across common providers over one year. This is the driver’s profile: If you’d like the cheapest car insurance on this list, it’s car insurance. But note that it does not cover damage to your car and the main driver. On the other hand, if you’d enjoy a slightly comprehensive yet affordable insurance, you may be better off with , , or . For the uninitiated, there are three types of car insurance in the market. Here’s a quick summary of what they cover. Third-party only (or liability sometimes) car insurance protects you if you’re at fault in an accident that damages another vehicle or property. If your objective is to avoid hefty payouts to other parties in the event of an accident you cause, this is the car insurance you should be getting. If you are in an accident, TPO covers the other vehicle, its driver, and property for any damage. It your own vehicle damages or medical bills. In addition to what’s covered on TPO, this adds coverage for damages to your vehicle from fire, theft, or attempted theft. It liability from accidents or your own medical expenses. As the name goes, this type of car insurance provides the most extensive coverage and is generally the most expensive among the three options. It covers car accidents and , , and medical expenses. The more risks and expenses you want to be covered, the higher your premiums will be. As a new driver, starting with an inexpensive plan and minimal coverage is a prudent way to keep costs low until you gain more experience. In my opinion, this is a good thing as long as there is no drastic difference in prices. Take, for instance, FWD, Income, Singlife, and Tiq car insurance plans that provide coverage for accidents, fire, and theft, but the difference lies in the coverage amount based on the tiers of the plans. Car insurance premiums in Singapore typically range from $800 to $2,000 per year, depending on the coverage level and vehicle type. The exact price will depend on factors like: Now, let’s take a look at the prices! As a new car owner, focus on a few key factors to get the coverage you need at a price you can afford. At the minimum, you should get third-party liability to cover damages to other vehicles. And if your car is new, get coverage for its current value to avoid being underinsured. If you’ve been driving for a while, you probably know the basics of finding car insurance. But you may miss out on some factors. Getting coverage for multiple vehicles or bundling with other policies like home insurance can qualify you for a multi-policy discount of up to 15-20% off your premiums. Some insurers like NTUC Income and AIG offer generous bundle deals for families and multiple car owners. If you can afford to pay more out of pocket in the event of a claim, increase your policy excess. The higher your excess, the lower your premiums. An excess of $1,000 to $2,000 can reduce your premiums by up to 30%. Just make sure you can afford the excess amount in case you need to claim. In Singapore, your credit score can affect your car insurance premiums. Insurers view those with good credit as less risky to insure. Check your credit report and score for any errors. Pay down high balances and limit new applications to improve your score. This can help you save $100-$200 per year on premiums. Consider dropping optional add-ons like roadside assistance or windscreen coverage if you don’t need them. Stick to a basic third-party fire and theft policy, which only covers damage to other vehicles and loss due to fire or theft. This can reduce premiums by 30-50% compared to a comprehensive policy. But make sure the savings are worth the reduced coverage.