Getting into an accident can be physically and emotionally expensive. Apart from the high costs incurred from repairing your car and taking care of your injuries, it has a ripple effect on your loved ones. From the emotional trauma to your loved ones worrying about your safety, getting into an accident can put a toll on you and the people around you.
Car Accident Rates in Singapore
With a 25 percent surge in fatal accidents in Singapore in 2021, this could be your signal to get protected with car insurance. While the rise in figures can be attributed to the resumption of activities after the circuit breaker, half of such accidents were caused by jaywalking.
Apart from jaywalking, drink driving, running the red light at traffic junctions, and speeding form the bulk of the accidents as well.
The surge in car accidents occurring in Singapore could be your signal to start getting higher protection with comprehensive car insurance! But with the three types of coverage available, namely comprehensive, third party, as well as fire and theft, you may be unsure of the difference in coverage that each plan offers. Fret not as we have illustrated the key differences between each to help you better protect yourself!
What Is Comprehensive Car Insurance
Offering the highest level of coverage, comprehensive car insurance covers you against damages done to both yourself and third parties. In addition to these, comprehensive car insurance also covers damage caused by unforeseen circumstances such as fire, theft, storms, floods, and accidents to your car.
To encourage the insured to take care of their property and exercise responsible driving habits, this plan is subject to a deductible, also known as excess. This is the amount that you will have to pay before your insurer covers the rest of the cost.
|Cost Paid by Insurer = Cost of Damage - Deductible|
To illustrate this, we will use Budget Direct as an example. At Budget Direct Insurance, the standard policy excess for cars is $600. However, you have the option to reduce this excess amount to zero or increase it to up to $1,500.
Using this as an example, if you have chosen the standard policy excess for cars and the damage done to your car costs $3,600, Budget Direct will pay you $3,000 to cover the costs of repair.
Benefits of Having Comprehensive Car Insurance
As the name suggests, comprehensive car insurance offers the most extensive level of coverage across the three car insurance plans. Of course, Depending on the tier of the plan you choose as well as what features you choose to be included in your plan, the level of coverage will be different. However, in most cases, comprehensive car insurance will cover the following:
- Damage to windscreen or windows
- Damage to personal property
- Damage to third party property
- Personal injury or death
- Third party injury or death
- Natural Disasters - floods, storms, fire, fallen trees, etc
Apart from car accidents on the road, comprehensive car insurance also provides coverage for theft and natural disasters. Further, unlike the third party and third party, fire and theft plans, which only help you cover the costs incurred from damage to third party property and injuries, the comprehensive plan also covers personal injuries and damage to personal property.
As such, with the additional coverage, you can be sure that you as well as your car will be better protected when unfortunate events strike.
While comprehensive car insurance offers extensive coverage, there are still areas where it does not cover. These include and are not limited to:
- Wear and tear of the vehicle
- Electrical or Mechanical breakdown
- Damage caused by a driver without a valid driving license
However, every insurer is different. Thus it is important that you check the coverage of the plan before purchasing it.
Comprehensive vs Third Party vs Third Party, Fire and Theft
To make it easier for you to understand the difference in coverage between the three different car insurance plans, below is a table which illustrates the level of coverage of each plan.
|Third Party||Third Party, Fire and Theft||Comprehensive|
|Third party injury or death||✓||✓||✓|
|Damage to third party property||✓||✓||✓|
|Natural Disasters||✓ (Fire only)||✓|
|Damage to windscreen or windows||✓|
|Personal injury or death||✓|
|Damage to personal property||✓|
Room for Customisation
Compared to the third party plan required by law, the comprehensive car insurance plan also allows for greater room for customisation. Most insurance companies do provide optional add-ons for your plans. Despite that, these add-ons are typically only available for the comprehensive plan as well as the third party, fire and theft plan, for some companies.
The most common optional add-ons offered include No Claim Discount (NCD) protection, the choice to choose your preferred workshop, and overseas emergency allowance.
Take FWD’s car insurance for instance. It only offers optional add-ons such as NCD protectors, the privilege to choose your preferred workshop, overseas boosters, and many more for their comprehensive plan. However, for their third party and third party, fire and theft plan, there is little allowance for such flexibility and customisation. Evidently, the comprehensive car insurance plan allows for greater room for customisation.
Drawbacks of Getting Comprehensive Car Insurance: Higher Premiums
With the high level of coverage comes the high price. Due to its higher premiums than the other plans, comprehensive car insurance is suitable for those with higher budgets. Having said that, much of it is dependent on the type of car and your driving records.
For cars that have depreciated, third party car insurance may be a better option as the cost to repair your car may be lower and it is much easier to manage the repairs than higher valued cars.
Having said that, you are also paying to have peace of mind when you drive. Knowing that the cost of repair should your car get into an accident as well as your medical expenses will be partially covered, getting into a car accident will be less stressful.
Find the Cheapest Car Insurance in Singapore
Knowing that comprehensive car insurance can be expensive, we have picked out a few of our top picks to help you find the cheapest car insurance quote in Singapore.
FWD Car Insurance
Offering competitive prices without skimping on features that other budget car insurance plans may lack, FWD Car Insurance is a great option for families looking for affordable car insurance plans. With three different tiers of coverage - Classic Plan, Executive plan and Prestige plan - for their comprehensive, third party and third party, fire and theft plans you can be sure that you will be able to find a plan for yourself.
Singlife With Aviva Car Insurance
With premiums that cost 30 percent lower than the market average, Singlife With Aviva Car Insurance is also an excellent budget-friendly option. While it may be affordable, it still offers great coverage. Under their comprehensive car insurance plan, benefits such as personal accident, 24-hour roadside and emergency assistance are already included.
If you would like to compare these with other car insurance plans in Singapore, check our comprehensive review on car insurance plans across Singapore to find the cheapest and best option and get a car insurance quote while you are at it! This way, you can protect your car, yourself and your loved ones.