Average Car Insurance Cost in 2025

• The average cost of car insurance in Singapore is typically between S$700 and S$1,000.

• Young drivers and those with a history of traffic violations or accidents face significantly higher premiums.

• The type of vehicle and its age play a substantial role in determining how much car insurance costs. Luxury or high-performance cars, as well as older vehicles, typically incur higher premiums.

In Singapore, car insurance is a legal necessity. All drivers must have at least third-party liability insurance, which covers damages to other people's property or injuries. More comprehensive coverage options include third-party fire and theft, and fully comprehensive insurance, which provides the most extensive protection. Understanding the factors that influence your car insurance premiums is crucial for finding the right coverage at a reasonable cost.

Factors influencing car insurance premiums

• Premiums across auto insurers

• Your driving history

• Your age and experience

• Your gender

• The type of car you drive

• Date of vehicle registration

>> More: The cost of owning a car in Singapore (and how to do it)

The average cost of car insurance in Singapore varies significantly based on numerous factors. It's not uncommon for premiums to range from S$700 to S$1,000 or more annually, depending on your profile and vehicle. To determine how much should you spend on car insurance, consider your budget against the level of risk you are comfortable with.

Understanding how your personal profile influences your car insurance premiums is crucial. Here's a breakdown of average annual premiums for various driver profiles in Singapore:

As you can see, the average cost of car insurance in Singapore varies significantly depending on your driver’s profile. While the figures provided offer a general overview, it's essential to understand that several personal factors, both within and outside your control, ultimately determine how much you pay.

It's important to note that, unlike some other regions, "full coverage" in Singapore is typically referred to as "comprehensive coverage," which includes third-party liability, fire and theft, and own damage protection. "Minimum coverage" here is the legally required third-party liability insurance, which is significantly cheaper but provides limited protection.

To give you a clearer picture, we've used specific driver profiles throughout this article, unless otherwise stated:

• Experienced driver (35 years old): This profile assumes a driver with a clean driving record, meaning no accidents, traffic violations, or insurance claims.

• Good driving record: Defined as a driver with no accidents, traffic violations, or insurance claims for a specified period (typically several years), allowing them to accumulate the maximum No-Claim Discount (NCD).

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It's no secret that car insurance premiums in Singapore seem to be on the rise. Several factors are contributing to this trend, and it's not just your imagination! According to The Straits Times, traffic fatalities and injuries have hit a five-year high in 2024, with an increase in fatal accidents often linked to speeding.

This unfortunate trend directly impacts insurance costs. When there are more accidents, insurance companies face higher payouts, and they often pass these costs on to consumers in the form of increased premiums.

Beyond accident rates, inflation and global supply chain issues are also playing a role. The cost of car repairs has gone up, with spare parts and labour becoming more expensive. This means that when accidents do happen, the claims are pricier to settle, further driving up premiums. Technological advancements in vehicles, while making them safer, also mean that repairs can be more complex and costly, contributing to the overall increase.

In short, a combination of factors, from increased accident rates to rising repair costs, is making car insurance more expensive in Singapore. It's a good reminder to drive safely and explore ways to reduce your premiums, like maintaining a good driving record and comparing quotes from different insurers.

>> More: 5 things to consider before buying car insurance in Singapore

Similarly, understanding the general cost of car insurance from different companies, including the best car insurance companies in Singapore, can help you get a sense of the market. However, it's crucial to remember that these are just averages, and your actual premium will be determined by your individual circumstances.

Average annual car insurance costs from large companies

*These are estimated premium ranges. Actual costs vary widely based on individual driver profiles, vehicle types, and coverage levels.

Smaller insurers in Singapore might occasionally offer cheaper rates compared to larger, more established companies. However, these smaller insurers may have limited coverage options or customer service capabilities.

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Your car insurance premium in Singapore is calculated based on a variety of factors that reflect the risk you pose to the insurer. These factors encompass your personal driving profile, the specifics of your vehicle, and even environmental influences, all of which insurers use to assess the likelihood and potential cost of a claim.

A clean driving record is your best asset when seeking affordable car insurance. Accidents or claims history, as well as traffic violations like speeding tickets, can significantly increase your premiums. Each incident can categorise you as a high-risk driver, resulting in higher costs.

>> More: What you need to know about car insurance premiums and costs

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>> More: Compare car insurance rates and quotes

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Age is a significant factor that influences car insurance premiums in Singapore. Insurers generally consider younger drivers to be at higher risk due to their limited driving experience and higher rates of accidents. As a result, younger drivers typically face higher premiums compared to older, more experienced drivers.

How much is auto insurance for young drivers?

Auto insurance for young drivers in Singapore is generally the most expensive due to their higher risk profile. Insurers consider factors such as:

• Lack of experience: New drivers are more prone to accidents due to inexperience.

• Higher accident rates: Statistics show that young drivers are more likely to be involved in traffic accidents.

• Risk-taking behaviour: Some insurers may factor in the potential for riskier driving behaviour among younger drivers.

>> More: Should you add a new driver to your car insurance?

Average annual car insurance costs for young drivers

Understanding average costs provides a useful benchmark, but it's just the beginning for young drivers seeking affordable car insurance in Singapore. Rates can vary based on factors like vehicle type, driving experience, and location. Here are estimated average annual rates for young drivers from some of the major auto insurance companies in Singapore:

*These are estimated premium ranges. Actual costs vary widely based on individual driver profiles, vehicle types, and coverage levels.

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In Singapore, while age, driving history, and vehicle type are the primary determinants of car insurance premiums, gender can still play a role. Although not universally practiced by all insurers, male drivers may, on average, face slightly higher premiums compared to female drivers. This potential difference is often attributed to statistical data, which indicate that males are approximately 1.4 times more likely to be involved in road accidents.

That said, even when gender is considered, its impact is generally less pronounced than other factors. SingSaver's analysis suggests that for drivers with similar profiles, the premium differences between genders are often negligible. Therefore, while it's a factor to be aware of, drivers should primarily focus on building a strong driving history and choosing appropriate vehicle and coverage options to minimise their car insurance costs.

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The type of vehicle you drive is a significant factor in determining your car insurance premiums in Singapore. Insurers assess risk based on the vehicle's value, repair costs, and potential for theft or damage.

Luxury cars, sports cars, and high-performance vehicles generally attract higher premiums compared to standard sedans or family cars. Electric vehicles (EVs) also often have higher insurance premiums due to their higher purchase price and specialised repair needs.

• Luxury and high-performance vehicles: These cars typically have higher values and more expensive parts, leading to increased repair costs in case of accidents. They may also be at a higher risk of theft.

• Standard sedans and family cars: These vehicles generally have lower premiums due to their lower value and repair costs.

• Electric Vehicles (EVs): EVs often have higher premiums than comparable petrol cars due to their higher purchase price and the specialised technology involved in their repair. However, some insurers are beginning to offer specific EV insurance policies that may offer competitive rates.

• Older vehicles: The type of coverage chosen for older vehicles will affect the price. Third-party liability may be cheaper, while comprehensive insurance may be more expensive due to the potential for higher repair costs as the vehicle ages.

It’s important to note that these car insurance costs are estimated ranges. The actual premium will depend on various factors, including the driver's age, driving history, and the specific insurance company.

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Beyond age, gender, and vehicle type, several other factors can influence your car insurance premium in Singapore. These include:

Driving history (including accumulated No-Claim Discount)

• Residential location (with areas prone to higher traffic congestion or theft potentially incurring higher costs)

• Vehicle usage (personal vs. commercial)

• Vehicle modifications

• Coverage level (comprehensive policies naturally cost more than basic third-party liability)

• Occupation and marital status as statistical indicators of risk

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