Best Cheap Car Insurance for Young Inexperienced Drivers 2018

Getting your first car is an exciting, albeit expensive event. We've rounded up the best car insurance plans in Singapore for young and inexperience drivers based on your budget and driver profile.

Table of Contents

Cheapest Car Insurance for Young or Inexperienced Drivers

Because car insurers see more risk with young or inexperienced drivers, premiums for drivers who are under 27 or have less than 2 years of experience tend be the highest. 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 Young Drivers: Aviva

Consider this if you are a young driver or have a lot of car accessories

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

The best car insurance for young or inexperienced drivers is Aviva. Aviva's Lite plan is the cheapest option for young for inexperienced drivers, with premiums around 40% cheaper than average for both male and female drivers. Additionally, you can purchase their policies as soon as you're 21, and be free of young driver excess after you turn 25—something that most companies keep in place until you turn 27. 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 Read our full review

CoverageAviva LiteExtra 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
Young/Inexperienced Driver (25 and under)N/AN/AS$2,500
Promotion: 15% off for MINDEF/MHA policyholders; S$150 CapitaVoucher for dual-year plans

Cheapest Insurance for Young/Inexperienced Female Drivers: Etiqa Comprehensive

Consider this if you are a budget-constrained female driver looking for a low excess plan

Third Party Damage Coverage Unlimited
Workshop Type Authorised
Coverage for Loss/Damage to Vehicle 100% of Market Value

While Etiqa is one of the cheapest policies for drivers across all profiles, it is considerably cheaper for young/inexperienced female drivers. With premiums 25% lower than average for young female drivers, Etiqa can prove to be a good option for women drivers looking for well-rounded coverage. To make premiums even more affordable, utilising all of Etiqa's ongoing promotions may end up giving you a premium 53% cheaper than the industry average for young drivers. In addition to this, Etiqa has the youngest limit for the young driver excess, at 24 years old, which can benefit young drivers who already have a few years of experience and want to reduce their excess as soon as possible.

The low price does not mean that Etiqa sacrifices coverage: it provides medical and personal accident coverage, roadside assistance and temporary transportation allowance all included in your plan. Additionally, for those looking to get maximum coverage for their valuable car accessories or LTA-approved car modifications, Etiqa lets you can add up to S$5,000 of car accessories coverage for an additional S$21. However, as mentioned earlier, young male drivers may find cheaper policies with other plans mentioned in this article, as we found Etiqa's premiums to hover around the average for this driver profile. Read our full review.

BenefitsAmountExtra CostExcess
Personal Accident (Main Driver)S$20,000N/AN/A
Personal Accident (Passenger)N/AN/AN/A
MedicalS$1,000N/AN/A
Windscreen CoverageUnlimitedN/AS$100
Car AccessoriesS$2,000S$85.60 for sun/moon roofsN/A
S$1,000S$21.40 for solar film
Loss of UseS$50/dayN/AN/A
Loss of Car KeysN/AN/AN/A
Young/Inexperienced Driver Excess (24 and under)N/AN/AS$2,000 (if using authorised workshop)
Promotion: 20% off + 5% off Fridays + 28% off for the first 5 customers daily

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

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

With premiums 30-35% below average for young or inexperienced male and female drivers, FWD's Classic plan is a great option for first-time car buyers with no NCD. However, this policy is particularly budget friendly for drivers in their late 20's or older, as their premiums can drop by an additional 20% compared to younger drivers (even if they have more experience). Also of note, FWD imposes an additional S$2,500 of 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. FWD also rewards loyalty and safe driving with certain benefits like its Lifetime 50% NCD once you've been claim-free for 5 years. This means if you are an older driver, once you reach a 50% NCD, you will be seeing up to a 60% discount on your car insurance. 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
Young/Inexperienced Driver Excess (27 and younger)N/AN/AS$2,500
Promotion: 25% off with "BestCar25"

Best Car Insurance for Low Excess: Budget Direct Comprehensive

Consider this if you are a young driver looking to insure other young drivers

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

If you are a young driver who wants to minimise your out-of-pocket expenses for accidents or repairs, Budget Direct's Comprehensive plan has competitive premiums that are around 30% cheaper than average (regardless of gender) and the lowest young driver excess of S$500 for drivers 25 years old and younger. This 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; other insurers typically impose a YIDR excess of S$2,500 or more.

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. 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$53.50N/A
Loss of Car KeysN/AN/AN/A
Young/Inexperienced Driver Excess (25 and under)N/AN/AS$500
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 Car Insurance for Parents Insuring their Young Drivers: FWD Prestige

Consider this if you are a young driver using your parent's car

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

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. 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
Young/Inexperienced Driver (27 and under)N/AN/AS$2,500 (waivable)
Promotion: 25% off with "BestCar25"

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:25% off with "BestCar25"
  • Etiqa: 20% off + 5% off Fridays + 28% off for the first 5 customers daily
  • Aviva: 15% off for MINDEF/MHA policyholders; S$150 CapitaVoucher for dual-year plans
  • 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)

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 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.

Comments and Questions

{"endpoint":"\/newsletter\/subscribe","style":"blue","title":"Keep up with our news and analysis.","version":"sidebar"}

Other Financial Products for Car Owners