AIG Car Insurance: Is It Good Bang for Your Buck?

AIG Car Insurance: Is It Good Bang for Your Buck?

Budget Direct offers a car insurance plan that sets itself apart by offering almost unbeatable premiums for experienced drivers.

Good for

  • Low-risk drivers seeking the cheapest possible premiums
  • People seeking a highly customizable plan
  • People seeking a great deal on TPO and TPFT car insurance

Bad for

  • People willing to spend a little more to ensure maximum peace of mind
  • Higher-risk drivers

Editor's Rating

4.0/5.0

AIG is undoubtedly one of the best-known insurance companies in Singapore - so much so that the odds are, if you've owned a car in Singapore, you've bought car insurance from AIG. But just because AIG car insurance is so widespread does not necessarily make it the best. Read the following review to find out if AIG really offers you the best value for your money in the Singapore car insurance market.

ProsCons
  • AIG's implementation of telematics technology into its car insurance plans give you the opportunity to save up to 15% on your car insurance premium just for driving safely
  • AIG's car insurance plans tend to have among the highest premiums on the market
  • Plans include personal accident benefit for all passengers in your car (up to S$10,000 each)
  • Plan is less flexible than some others with relatively fewer customization options (e.g. to add loss of use benefit or change policy excess)
  • AutoPlus Plan will waive your policy excess for up to S$1,000 if you already have a 50% NCD, and waive 50% of policy excess up to S$500 if your NCD is less than 50%
  • Very expensive if you want to get your car repaired at your own workshop, as you'll need to upgrade to the priciest AutoPlus plan for this flexibility
  • Plans include cover for your car keys and locks for up to S$800, and AIG will pay for locksmithing or towing if you lock your keys in your car
  • Fairly low medical expenses cover (up to S$300) compared to other insurers

What Makes AIG's Car Insurance Plan Stand Out?

AIG's three car insurance plans, the AutoValue, AutoPlan and AutoPlus, each address the needs of concerns of different kinds of drivers while providing a fairly well-rounded package of features. The AutoValue plan is targeted toward the budget driver; it is the most bare-bones of the three and comes with the cheapest price tag. The AutoPlan, which is priced between the AutoValue and AutoPlus plans, is the best fit for drivers who want flexibility when it comes to workshop choice. Unlike the other two, the AutoPlan places no restrictions on where you must get your car repaired after an accident, making it a good choice for drivers of continental or luxury vehicles with hard-to-attain parts. Finally, the relatively luxe AutoPlus plan offers its policyholders premium features such as a higher personal accident benefit of up to S$50,000, 24-hour towing and roadside assist service and unlimited access to a courtesy car if your vehicle is being held in a workshop for repairs.

Other highlights include AIG's extension of the personal accident benefit to all passengers in your car as well as its cover for your car keys and locks. With any AIG car insurance plan, you'll also get a S$800 cover for your lock and keys, and AIG will also cover the cost of a locksmith in case you accidentally lock your keys in your car. AIG also sets itself apart from many other insurers on the market with its recent incorporation of telematics technology into its car insurance schemes, offering policyholders the opportunity to save up to 15% on their premiums based on the quality and safety of their driving behavior using AIG's On the Go App. As such, AIG, along with other innovators NTUC Income and Etiqa, are frontrunners in finding creative ways to leverage modern-day technology to help consumers save money.

Drawbacks to AIG

Unfortunately, while AIG's car insurance plans undoubtedly cover the bases and give customers a variety of options to address different needs, they tend to cost significantly more than alternatives on the market without offering better or even equivalent value for your money. If you are in the market for a cheap car insurance plan that offers you great bang for your buck, we think you can get better value with an insurer such as FWD or Aviva.

AIG plans are also somewhat inflexible, lacking extensive customization options to let you tailor your plan specifically to your needs. For example, if you want the highest coverage possible and maximum peace of mind but also would prefer the option to repair your 5-year-old BMW at a workshop of your choice, you'll have to make a compromise: the AutoPlus plan has the best benefits, but only the AutoPlan will allow you unrestricted flexibility to choose your own workshop for repairs. Furthermore, AIG's coverage for medical expenses (up to S$300 per person) is quite low compared to what is offered by many other insurers.

Features and Benefits Included in AIG's Car Insurance Plan

FeaturesAutoValueAutoPlanAutoPlus Plan
Flood damage coverage?YesYesYes
Cover for loss or damageUp to the market value of your car
24 hr claims procedure enquiry hotlineYesYesYes
Repair/replace vehicle after accident?NoWill pay for a brand new car of the same make and model within 3 years of car purchase
Can you choose your own workshop?NoYesFor cars 3 years old or newer, you may use dealer or AIG workshops; cars above 3 years must be sent to AIG workshops
Medical expensesUp to S$300
Towing costsUp to S$500 per accidentUp to S$300 per accidentUp to S$500 per accident
24-hour roadside assistanceNoNoYes
Unlimited coverage for third party death or injuryYesYesYes
Coverage for third party property damageUp to S$5,000,000
Loss of use benefit while car is repairedGet a replacement car for up to 10 days by paying an extra S$94.16 for a 1500cc-1600 cc car or an extra S$115.56 for a 1800-2000 cc carIncluded in plan for as many days as you need
Personal accident benefit for DriverUp to S$20,000 for policyholderUp to S$50,000 for policyholder
Personal accident benefit for PassengersUp to S$10,000 for each passenger
Replacement of car lock and keysUp to S$800
NCD ProtectorUnavailableAvailable for AutoPlus and AutoPlan policyholders with 50% NCD when you renew your policy

How Does AIG Car Insurance Compare Against Other Insurers' Plans?

We compared car insurance premiums from 10 major Singapore insurers and found that AIG offers one of the more expensive car insurance premiums in the market for the average driver of a compact sedan like the Toyota Corolla Altis or Honda Civic. The following quotes are based on the driver profile of a 45-year-old single male with 5 years of driving experience and a 0% NCD. Please remember as you are shopping for a car insurance plan that premiums you receive may differ depending on your driver profile and vehicle.

This graph compares car insurance rates offered by ten of Singapore's major insurance providers. It demonstrates that AIG has the third-most expensive premium on the market for the average compact sedan.
Comparing Car Insurance Premiums in Singapore for the Average Compact Sedan

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