Best Cheap Car Insurance for Young Inexperienced Drivers 2021

Getting your first car is an exciting, albeit expensive event. After analysing hundreds of premiums from 12 insurers, our car insurance experts found the best car insurance plans in Singapore for young and inexperienced drivers.

Compare the Best Car Insurance Plans for New Drivers

If you're a new driver, a comprehensive car insurance plan is crucial. We've analysed hundreds of car insurance quotes and benefits to find the plans that offer the most competitive premiums, best coverage or a great combination of both.

This graph compares the cheapest car insurance premiums in Singapore for young or inexperienced male drivers

Cheapest Car Insurance for Young or Inexperienced Drivers

Because car insurers see more risk with young or inexperienced drivers, premiums tend to be the highest for drivers who are younger than 27 years of age or who have less than 2 years of experience. However, if you show your insurer you are a responsible driver by having a clean driving record and not getting into accidents, you can expect your premiums to decrease significantly through No Claim Discount bonus increases of 10% every year (up to a maximum of 50%). Until then, you can still find car insurance plans that offer great coverage for an affordable price.

This graph compares the cheapest car insurance premiums in Singapore for young or inexperienced male drivers

Best Car Insurance for Low Excess: Budget Direct Comprehensive

  • Consider this if you are a young driver looking for minimum excess responsibility
  • Young/Inexperienced Driver Excess: S$500 (25 and younger)
  • Promotion: Use Promo "WOW100" for up to $100 NETS FlashPay, Affinity ID "VALUE5" for 5% off
  • Read our full review
BenefitsAmountExtra CostExcess
Personal Accident (Main Driver)S$20,000S$32.10N/A
Medical CoverageS$500S$21.40N/A
Windscreen/Window CoverageUnlimitedN/AS$100
Car AccessoriesS$500N/AN/A
Loss of UseS$50/dayS$64.20N/A
Loss of Car KeysN/AN/AN/A

If you are a young driver who wants to minimise your out-of-pocket expenses for accidents or repairs, Budget Direct's Comprehensive plan offers premiums that are 48% cheaper than average for male drivers and 33% cheaper than average for female drivers. It also has the lowest young driver excess of S$500 for drivers 25 years old and younger. Because other insurers typically impose a Young/Inexperienced Driver (YIDR) excess of S$2,500 or more, Budget Direct's low young & inexperienced driver excess can help you save up to S$2,000 on out-of-pocket costs if you end up getting into an accident and need major repair work done.

One downside of Budget Direct is that benefits that other insurers include in their plans are offered here only as an additional purchase, including medical, personal accident and roadside assistance. However, due to its already low price, whether you opt for more coverage or are comfortable with the basic plan, you will still end up with a comprehensive plan that retains its affordability.

Consider this if you are a young driver looking for minimum excess responsibility
  • Young/Inexperienced Driver Excess: S$500 (25 and younger)
  • Promotion: Use Promo "WOW100" for up to $100 NETS FlashPay, Affinity ID "VALUE5" for 5% off
  • Read our full review
BenefitsAmountExtra CostExcess
Personal Accident (Main Driver)S$20,000S$32.10N/A
Medical CoverageS$500S$21.40N/A
Windscreen/Window CoverageUnlimitedN/AS$100
Car AccessoriesS$500N/AN/A
Loss of UseS$50/dayS$64.20N/A
Loss of Car KeysN/AN/AN/A

If you are a young driver who wants to minimise your out-of-pocket expenses for accidents or repairs, Budget Direct's Comprehensive plan offers premiums that are 48% cheaper than average for male drivers and 33% cheaper than average for female drivers. It also has the lowest young driver excess of S$500 for drivers 25 years old and younger. Because other insurers typically impose a Young/Inexperienced Driver (YIDR) excess of S$2,500 or more, Budget Direct's low young & inexperienced driver excess can help you save up to S$2,000 on out-of-pocket costs if you end up getting into an accident and need major repair work done.

One downside of Budget Direct is that benefits that other insurers include in their plans are offered here only as an additional purchase, including medical, personal accident and roadside assistance. However, due to its already low price, whether you opt for more coverage or are comfortable with the basic plan, you will still end up with a comprehensive plan that retains its affordability.

Cheapest Car Insurance for Drivers in Late 20's or Older: FWD Classic

  • Consider this if you are older than 27 with less than 2 years of driving experience
  • Young/Inexperienced Driver Excess: S$2,500 (27 and younger)
  • Promotion: "VCAR" for 20% off on Classic plan or 20% off + S$150 CapitaVoucher for Executive & Prestige Plan
  • Read our full review
BenefitsAmountExtra CostExcess
Personal Accident (Main Driver)S$30,000N/AN/A
Personal Accident (Passenger)S$10,000N/AN/A
Medical ExpensesS$1,000N/AN/A
Windscreen DamageUnlimitedN/AS$100
Car AccessoriesS$500N/AN/A
Loss of UseS$40/dayN/AN/A
Loss of Car KeysN/AN/AN/A

With premiums costing 10% below average for young or inexperienced male and female drivers, FWD's Classic plan is a great option for first-time car who haven't accumulated a No Claim Discount (NCD). However, this policy is particularly budget friendly for drivers in their late 20's or older. First, drivers who are in their late 20's will find their premiums to drop by an additional 20% compared to their younger counterparts (even if they have more experience). Second, FWD imposes an additional S$2,500 young driver excess for drivers younger than 27.

Though its prices are low, FWD offers comprehensive benefits including medical and personal accident coverage, car accessory benefits, roadside assistance and loss of use. Some of these benefits can offer great peace of mind for new drivers. In particular, their roadside assistance support is there even if you aren't in an accident and just need a battery jump start. FWD also rewards loyalty and safe driving with certain benefits like its Lifetime 50% NCD once you've been claim-free for 5 years.

Consider this if you are older than 27 with less than 2 years of driving experience
  • Young/Inexperienced Driver Excess: S$2,500 (27 and younger)
  • Promotion: "VCAR" for 20% off on Classic plan or 20% off + S$150 CapitaVoucher for Executive & Prestige Plan
  • Read our full review
BenefitsAmountExtra CostExcess
Personal Accident (Main Driver)S$30,000N/AN/A
Personal Accident (Passenger)S$10,000N/AN/A
Medical ExpensesS$1,000N/AN/A
Windscreen DamageUnlimitedN/AS$100
Car AccessoriesS$500N/AN/A
Loss of UseS$40/dayN/AN/A
Loss of Car KeysN/AN/AN/A

With premiums costing 10% below average for young or inexperienced male and female drivers, FWD's Classic plan is a great option for first-time car who haven't accumulated a No Claim Discount (NCD). However, this policy is particularly budget friendly for drivers in their late 20's or older. First, drivers who are in their late 20's will find their premiums to drop by an additional 20% compared to their younger counterparts (even if they have more experience). Second, FWD imposes an additional S$2,500 young driver excess for drivers younger than 27.

Though its prices are low, FWD offers comprehensive benefits including medical and personal accident coverage, car accessory benefits, roadside assistance and loss of use. Some of these benefits can offer great peace of mind for new drivers. In particular, their roadside assistance support is there even if you aren't in an accident and just need a battery jump start. FWD also rewards loyalty and safe driving with certain benefits like its Lifetime 50% NCD once you've been claim-free for 5 years.

Best Car Insurance for Young Drivers: Aviva Lite

  • Consider this if you are a young MINDEF/MHA driver or have a lot of car accessories
  • Young/Inexperienced Driver Excess: S$2,500 (25 and younger)
  • Promotion: "CAR17" for 17% discount for all vehicles age up to 4 years old; "FUNMAY24" for 24% discount for all vehicles age 5 years old and above
  • Read our full review
CoverageLimitExtra CostExcess
Windscreen/Window CoverageUnlimited @ authorised repairerN/AS$100
Personal Accident (Main Driver)S$100,000S$53.50N/A
Personal Accident (Passenger)S$100,000S$53.50N/A
MedicalN/AN/AN/A
TowingUnlimitedN/AN/A
Car AccessoriesUnlimitedN/AN/A

The best car insurance for young or inexperienced drivers, especially those who are MINDEF/MHA members, is Aviva. Aviva's Lite plan is the cheapest option for young for inexperienced drivers, with premiums that are around 30% cheaper than average for both male and female drivers. It is especially competitive for MINDEF/MHA customers as there is an additional 15% off on top of any ongoing promotions.

Additionally, you can purchase their policies as soon as you're 21, and be free of the young driver excess after you turn 25—a feature that most companies keep in place until you turn 27. The coverage is pretty basic, which may make it less than ideal for inexperienced drivers. However, if you drive infrequently or have plenty of experience driving as an adolescent, the affordability may outweigh the lack of included perks. If the Lite plan's coverage isn't enough, opting for the more expensive Prestige plan will waive your young driver excess and give you a lot more benefits.

Consider this plan if you are a young MINDEF/MHA driver or have a lot of car accessories
  • Young/Inexperienced Driver Excess: S$2,500 (25 and younger)
  • Promotion: "CAR17" for 17% discount for all vehicles age up to 4 years old; "FUNMAY24" for 24% discount for all vehicles age 5 years old and above
  • Read our full review
CoverageLimitExtra CostExcess
Windscreen/Window CoverageUnlimited @ authorised repairerN/AS$100
Personal Accident (Main Driver)S$100,000S$53.50N/A
Personal Accident (Passenger)S$100,000S$53.50N/A
MedicalN/AN/AN/A
TowingUnlimitedN/AN/A
Car AccessoriesUnlimitedN/AN/A

The best car insurance for young or inexperienced drivers, especially those who are MINDEF/MHA members, is Aviva. Aviva's Lite plan is the cheapest option for young for inexperienced drivers, with premiums that are around 30% cheaper than average for both male and female drivers. It is especially competitive for MINDEF/MHA customers as there is an additional 15% off on top of any ongoing promotions.

Additionally, you can purchase their policies as soon as you're 21, and be free of the young driver excess after you turn 25—a feature that most companies keep in place until you turn 27. The coverage is pretty basic, which may make it less than ideal for inexperienced drivers. However, if you drive infrequently or have plenty of experience driving as an adolescent, the affordability may outweigh the lack of included perks. If the Lite plan's coverage isn't enough, opting for the more expensive Prestige plan will waive your young driver excess and give you a lot more benefits.

Best Car Insurance for Parents Insuring their Young Drivers: FWD Prestige

  • Consider this if you are a young driver using your parent's car
  • Young/Inexperienced Driver Excess: S$2,500 (Waivable; 27 and under)
  • Promotion: "VCAR" for 20% off on Classic plan or 20% off + S$150 CapitaVoucher for Executive & Prestige Plan
  • Read our full review
BenefitsAmountExtra CostExcess
Personal Accident (Main Driver)S$75,000N/AN/A
Personal Accident (Passenger)S$25,000N/AN/A
MedicalS$5,000N/AN/A
Windscreen CoverageUnlmtdN/AS$100
Car AccessoriesS$2,000N/AN/A
Loss of UseS$80/dayN/AN/A
Loss of Car KeysS$1,000N/AN/A

In some cases, it makes more economical sense to have your parents purchase your car insurance or to stay under your parent's insurance until you are old enough to see significant discounts on your premiums. With FWD's Prestige plan, not only will your parents have one of the best value plans on the market (whether or not they listed you as an authorised driver), but you can also opt to waive your entire young driver excess of S$2,500 and still end up paying 70% less on average than if you bought a basic comprehensive policy under your own name.

Compared to basic comprehensive car insurance plans, the Prestige plan offers more benefits and much higher coverage, including S$80 of alternative transportation per day, S$2,000 car accessory coverage and a replacement car for up to 3 months if yours gets stolen or totalled. It also covers replacing, fitting and transporting damaged car parts and offers 24/7 roadside assistance to help you in the event of a breakdown or accident, giving you and your parents maximum peace of mind.

Consider this if you are a young driver using your parent's car
  • Young/Inexperienced Driver Excess: S$2,500 (Waivable; 27 and under)
  • Promotion: "VCAR" for 20% off on Classic plan or 20% off + S$150 CapitaVoucher for Executive & Prestige Plan
  • Read our full review
BenefitsAmountExtra CostExcess
Personal Accident (Main Driver)S$75,000N/AN/A
Personal Accident (Passenger)S$25,000N/AN/A
MedicalS$5,000N/AN/A
Windscreen CoverageUnlmtdN/AS$100
Car AccessoriesS$2,000N/AN/A
Loss of UseS$80/dayN/AN/A
Loss of Car KeysS$1,000N/AN/A

In some cases, it makes more economical sense to have your parents purchase your car insurance or to stay under your parent's insurance until you are old enough to see significant discounts on your premiums. With FWD's Prestige plan, not only will your parents have one of the best value plans on the market (whether or not they listed you as an authorised driver), but you can also opt to waive your entire young driver excess of S$2,500 and still end up paying 70% less on average than if you bought a basic comprehensive policy under your own name.

Compared to basic comprehensive car insurance plans, the Prestige plan offers more benefits and much higher coverage, including S$80 of alternative transportation per day, S$2,000 car accessory coverage and a replacement car for up to 3 months if yours gets stolen or totalled. It also covers replacing, fitting and transporting damaged car parts and offers 24/7 roadside assistance to help you in the event of a breakdown or accident, giving you and your parents maximum peace of mind.

Summary of Car Insurance Promotions

Since young or inexperienced drivers see the highest premiums, it is always a welcome sight to see discounts that can make your motor insurance more affordable. With that, we have compiled a list of the current promotions that are available, as well their codes (if necessary).

  • FWD:"VCAR" for 20% off on Classic plan or 20% off + S$150 CapitaVoucher for Executive & Prestige Plan
  • Etiqa: "CAR-20" for 20% off
  • Aviva: "CAR17" for 17% discount for all vehicles age up to 4 years old; "FUNMAY24" for 24% discount for all vehicles age 5 years old and above
  • Budget Direct: Use Promo "WOW100" for up to $100 NETS FlashPay, Affinity ID "VALUE5" for 5% off

Frequently Asked Questions

For more information on car insurance for new drivers, check out the frequently asked questions below.

There are many factors to consider when deciding on a car insurance plan. Understanding your insurance needs, driving experience, and budget are key to finding the most suitable policy for you. As a young and inexperienced driver, you may benefit greatly from choosing a plan that offers extensive accident-related coverage.

Additionally, car insurance is expensive as is, so you do not want to be paying for unneeded coverage. Understand exactly what you will require for your insurance and compare rates to find the cheapest option that fits your needs.

Yes, all drivers are required by law to have car insurance in Singapore.

Yes, drivers are covered by their insurance when driving outside of Singapore if they are driving in West Malaysia and Southern Thailand (within 80km of its border with west Malaysia).

  • Wear and Tear/Depreciation
  • Loss/damage caused by lawful repossession
  • Loss/damage to the car’s software
  • Operation of a car that is not in roadworthy condition
  • Operating a vehicle without a valid license/suspended license
  • Suicide or intentional self-injury
  • Driving under the influence
  • Loss or damage caused by negligence
  • Damage caused by any form of racing or motor competition
  • Driving with prohibited modifications
  • Damage caused by war or other enemy acts
  • Damage to tyres or rims (unless additional parts of the vehicle were damaged in an accident)

Methodology

To find the cheapest car insurance plans for young or inexperienced drivers we used a driving profile of a 25-year old male and female and looked at how premiums differ across 12 different car insurers in Singapore. We then compared the coverage offered to see which plans are best fitted for inexperienced or young drivers (for example, an inexperienced driver would probably like to see roadside assistance and personal accident coverage, while younger drivers might be more interested in also protecting their car accessories). Using this data, we were able to segment not only which car insurers were the cheapest, but also which plans could benefit which profile of driver best.

Anastassia Evlanova

Anastassia is a Senior Research Analyst at ValueChampion Singapore, evaluating insurance products for consumers based on quantitative and qualitative financial analysis. She holds degrees in Economics and International Business Management and her prior working experience includes work in the capital markets sector. Her analyses surrounding insurance, healthcare, international affairs and personal finance has been featured on AsiaOne, Business Insider, DW, Vice, Her World, Asia Insurance Review, the Australian Institute of International Affairs and more.

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