Best Cheap Car Insurance for Used COE Cars 2018

TPO and TPFT car insurance plans are solid options for older COE or used car drivers. Below, we've gathered data from 12 car insurers in Singapore to help you compare the cheapest TPFT and TPO plans available on the market.

Table of Contents

Cheapest TPFT/TPO Plans for Safe Drivers: Budget Direct

Consider this if you are a safe driver looking for the cheapest premiums

Third Party Damage Coverage S$5,000,000
Workshop Type Any
Coverage for Loss/Damage to Vehicle 100% of Market Value

If you are an experienced driver with a spotless driving record, you could stand to save quite a bit from Budget Direct’s highly competitive TFPT plan. As one of the cheapest options available, its premiums are around 20-35% cheaper than the average TPFT plan regardless of one's NCD level. In addition to the S$500,000 third party damage and unlimited third-party liability coverage, it also provides coverage for windscreen damage and loss of use for an additional fee of S$53.50. For even more protection, there are options to buy personal accident and medical coverage, an NCD protector and roadside assistance benefits.

Budget Direct is also cheapest for TPO plans, costing 40% below average for 50% NCD drivers. Despite its lower prices, Budget Direct's one of the few insurers that allows you to add on several options to your TPO policy including windscreen, personal accident and medical coverage. This gives Budget Direct's TPO plan quite a value. But depending on the amount of add-ons, you may just end up getting better more out of its TPFT plan as it provides more options like accessories coverage and roadside assistance support.

CoverageAmountTFPT AvailabilityTPO Availability
Third Party DamageS$5,000,000YesYes
Third-Party DeathUnlimitedYesYes
Repair Due to Fire or TheftMarket ValueYesNo
TowingS$200YesNo
Emergency Roadside AssistanceUnlmtdYesNo
Loss of Use/Car ReplacementS$50/dayYesNo
AccessoriesFull valueYesNo
Promotion:Get S$100 if your current insurer offers cheaper premiums than Budget Direct upon renewal (even if you don't end up purchasing a Budget Direct policy)

Best Value for TPFT/TPO Plans: FWD

Consider this if you want a comprehensive TPFT plan that offers perks like towing and legal damages coverage

Third Party Damage Coverage S$5,000,000
Workshop Type Authorised
Coverage for Loss/Damage to Vehicle 100% of Market Value

If you are looking for a TPFT plan that throws in some extra perks, FWD may be a great option with its 25% below average premiums and plethora of added protections. These benefits include a new replacement car if your car was stolen or written off (if car is newer than 12 months), S$3,000 legal cost coverage if someone sues you for damage done by your car and S$300 for towing. If you repair your car at an FWD workshop, you will also be guaranteed a defect-free repair and 24-hour roadside assistance.

FWD's TPO plan is also around 25% cheaper than the average Third-Party Only plan for mid-sized sedans and offers a few potentially valuable perks including S$3,000 of legal fee coverage and 24-hour roadside assistance at no extra cost.

CoverageAmountTFPT AvailabilityTPO Availability
Third Party DamageS$5,000,000YesYes
Third-Party DeathUnlimitedYesYes
Repair Due to Fire or TheftMarket ValueYesNo
TowingS$300YesNo
Emergency Roadside AssistanceUnlmtdYesYes
Loss of Use/Car ReplacementN/AN/AN/A
AccessoriesN/ANoNo
Promotion: 25% off with "BestCar25"

Cheapest TPFT/TPO Plan for New Drivers: Citibank SmartDrive

CitiBank SmartDrive

Consider this if you are an inexperienced driver with a COE car

Third Party Damage Coverage S$5,000,000
Workshop Type Authorised
Coverage for Loss/Damage to Vehicle 100% of Market Value

If you are a new driver with no NCD or have little experience driving, Citibank’s SmartDrive TPFT Plan could be a good match because it has some of the cheapest premiums for non-NCD drivers, around 15-25% cheaper than average. Not only that, Citi's TPFT plan also offers towing and loss of use coverage of S$50/day at no extra cost. This is a great feature if you don't want to pay for a comprehensive plan but still want accident-related features included in your plan.

While Citibank's TPO plan is just as competitively priced as its TPFT plan with premiums costing around 20% less than the average, it provides only the basic third party damages and liability coverage without any extra protection or optional add-ons. Thus, this plan is better suited for people who have many years of driving experience and won't have expensive repairs, though these drivers could probably find better value with Budget Direct's TPO plan.

CoverageAmountTFPT AvailabilityTPO Availability
Third Party DamageS$5,000,000YesYes
Third-Party DeathUnlimitedYesYes
Repair Due to Fire or TheftMarket ValueYesNo
TowingS$200 (Domestic)/S$500 (overseas)YesNo
Emergency Roadside AssistanceUnlmtdYesYes
Loss of Use/Car ReplacementS$50YesNo
AccessoriesN/ANoNo

Summary of Car Insurance Promotions

Though TPO and TPFT are the cheaper alternatives to Comprehensive car insurance plans, they can still easily cost hundreds of dollars. Thus, finding a great promotion can make your purchasing decisions that much less painful. Below are some of the top car insurance promotions on the market.

  • FWD: 25% off with "BestCar25"
  • Budget Direct: Get S$100 if your current insurer offers cheaper premiums than Budget Direct upon renewal (even if you don't end up purchasing a Budget Direct policy)

How to Choose Between TPO and TPFT Plans

If you are driving a used or older car (older than 8-10 years) and you have paid off your car loan, you have the option of purchasing a Third Party Only (TPO) or Third-Party, Fire & Theft (TPFT) plan. Whereas the plan that will work best for you depends on your desired level of coverage, you will most likely benefit from these plans if your car's value is too low to benefit from the coverage Comprehensive plans offer.

this image shows the cheapest Third party only or Third Party Fire & Theft car insurance premiums in Singapore for COE cars

Third-Party Only plans are the cheapest car insurance option and only cover damages caused by you to to a third party—specifically damage caused to their car or bodily harm/death. Unless offered as optional covers, it is highly unlikely there will be coverage for anything else. Nonetheless, if your car is older and the cost to repair it is quite cheap (cheaper than paying for a comprehensive policy), or you have a long track record of accident-free driving, TPO plans may end up being a good fit for you.

If you are looking for a bit more coverage than just Third Party Only plans, Third Party, Fire & Theft insurance plans cover not only third-party damages, but also damage to your car in the event of a fire or theft. These plans are usually more expensive than TPO plans, but provide more thorough coverage while still being cheaper than their Comprehensive counterparts. TPFT is a good choice if you are an experienced driver who feels more comfortable having a bit more coverage than just third-party damages. However, you shouldn't automatically assume that you will be saving money with a TPFT plan, as it is possible to find a comprehensive plan like FWD's Value plan that actually costs less than some TPFT plans.

Methodology

We compiled data from 12 car insurers in Singapore to find which ones offered the most competitive rates for TPO and TPFT insurers. To standardise the data we averaged the premiums for 4 of the most popular sedans on the market (Toyota Corolla Altis, Honda Civic, Hyundai Elantra and Mazda 3) for the driver profile of a 45-year old male. Changing the NCD around and recording the differences in those prices also led us to see which insurers are cheaper based on your safe driving record. However, please be advised that your premiums may differ as car insurers change pricing depending on your car make, age of car, age of driver, and driving experience.

Anastassia Evlanova

Anastassia is a Junior Research Analyst at ValueChampion Singapore, focusing on insurance. She graduated with Honors from Mohawk College with a postgraduate diploma in International Business Management, and holds a B.A. in Economics from New York University. Her prior working experience includes work in the capital markets sector.

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