Car Insurance FAQs

Cover and Benefits

  • What type of motor insurance coverage should I buy for my car?
  • Insurers offer three main types of motor insurance policies;

    1. Comprehensive Cover covers repair or replacement of your vehicle if it is damaged or lost as a result of theft, accident, vandalism or weather-related damage. It also covers accidental loss or damage to your car, its spare parts and accessories and liability of claims from third parties for damage to property and people. Comprehensive coverage differs significantly from one insurer to another. You must purchase this policy if your car is financed. We recommend you also buy this policy if you don’t have enough savings to replace the car, or are economically dependent on it.
    2. Third Party, Fire and Theft Cover covers injury and damage caused by your vehicle to another party’s vehicle or property, it also covers your vehicle if it is stolen or damaged by fire. To purchase this policy, you must not have any loan financing your car. You should also make sure you have enough savings to replace the car, especially if you are economically dependent on it. For newer cars it is better to get comprehensive insurance.
    3. Third Party Cover covers liability claims from third parties for injury and damage to their vehicle or property caused by your vehicle. To purchase this policy, you must not have any loan financing your car. You should also make sure you have enough savings to replace the car, especially if you are economically dependent on it. For newer cars, it is better to get comprehensive insurance.
  • What’s the difference between authorised scheme or any workshop scheme?
  • In Singapore, there are two types of motor insurance scheme. Authorised Workshop or Any Workshop. An authorised workshop is one that has an arrangement with the insurer and hence the scheme has a lower premium because the insurer has control of the repair cost.

    A reason for people to choose the “any workshop” scheme is because they have a certain model car which can only be fixed in designated workshops


  • What is NCD? How will it affect my premiums?
  • If you have not made any claims for a year or more, you are entitled to a No-Claim Discount (NCD)). The NCD reduces the policy premium for the following year. This is your insurer’s way to recognise you for being a careful driver. The following table shows how the NCD is set by all insurers across the industry.

    Period of insurance with no claim Discount on renewal
    1 year 10%
    2 year 20%
    3 year 30%
    4 year 40%
    5 years or longer 50% 


  • Does my NCD apply to me, or to my vehicle?
  • In principle, your NCD applies to you and not to your vehicle. For example, if you sell your vehicle and buy another one, you will retain your NCD. However, if you own more than one vehicle, you might have a different NCD for each vehicle. You should check the details with your insurer, but generally your NCD can be transferred to another vehicle owned by you, but it can’t be applied to more than one vehicle at any point in time. Your NCD cannot be transferred to another person.

  • If I make a claim, will I automatically lose my NCD?
  • Not necessarily. All insurers in Singapore use a guide called the Barometer of Liability Agreement (BOLA) to determine how much each party is liable in an accident. The BOLA is designed to speed up claims processing. It does not diminish your right to contest liability under the law. Under the BOLA, your NCD will not be affected if your liability is 20% or less in an accident involving an identified vehicle. In all other cases, your NCD may be affected.

  • Will I lose my NCD if there is a break in ownership of my vehicle?
  • Most insurers in Singapore will allow you to keep your NCD should there be a break in ownership for up to 24 months. Some insurers set the timeframe at 12 months. You should contact your insurer for details.

  • Can I insure against the loss of my NCD?
  • Some insurers may allow you to buy protection against the loss of the discount. By paying a small amount of extra premium (add-on), you can make one claim during the year, and still have the discount fully protected. Please check on our site whether NCD cover is available.

General & Eligibility

  • Why should I not just renew my motor insurance with my current insurer?
  • Insurance premiums change constantly and insurers will compete for different profiles of drivers in order to balance their risk portfolio. Therefore, your current insurer might not be able to give you the best premium. Insurance Market helps you to save money or get better terms on your motor insurance through comparing quotes instantly

  • How long in advance should I be searching for my motor insurance renewal?
  • 1 to 1.5 months in advance will be good, so that you have ample time to renew your Road Tax and get your car inspected and passed, if you need to.

  • Who do I pay my car insurance premium to?
  • You will be paying to Insurance Market Pte Ltd. Insurance Market is a licensed by the Monetary Authority of Singapore to collect premiums on behalf of insurance companies.

  • How will my road tax be renewed?
  • You can choose to renew it through Online Banking, Automobile Association, AXS machine, or Singapore Post Office.

  • What is excess?
  • Excess, also called deductible, is to the first amount of the claim which the insured has bear. If the insured has an excess of S$750 and the total repair costs S$3,000, then the insured has to pay S$500 while the insurer pays the remaining S$2,250.

  • Why should there be an excess?
  • The insurer normally imposes some excess as this would serve as a form of co-insurance. With an excess, the insured would tend to be more careful because if a claims occur, the insured also has to be out of pocket and contribute towards the claim. In general, the higher the excess, the more careful would be the insured and hence the lower risk of having a claim, to reduce frivolous (unnecessary and avoidable) claims.

See all 9 articles