The 3 Key Types of Car Insurance

Choosing the right car insurance is crucial in Singapore, as it protects you financially in case of accidents, theft, or other unforeseen events. Understanding the different types of car insurance coverage available is essential to make an informed decision that aligns with your needs and driving habits, while also meeting legal requirements. The most common types of car insurance in Singapore are:

• Third-party only (TPO)

• Third-party, fire and theft (TPFT)

• Comprehensive

There are also optional add-ons you can use to enhance your coverage such as windscreen damage, medical benefits for driver, and bodily injury to third parties.

This guide will help you navigate the different types of auto insurance coverage and find the best fit for your vehicle and circumstances.

» MORE: What is car insurance?

Third-Party Only (TPO) car insurance is the minimum legal requirement for driving in Singapore. It covers your liability for bodily injury or property damage caused to others while driving, but it doesn't cover any damage to your own vehicle. While TPO plans are the most affordable option, they offer limited protection.

TPO car insurance might be suitable for drivers of older vehicles with low market value or those on a tight budget. However, if you drive frequently, own a newer or more expensive car, you might want to consider more comprehensive coverage.

>>MORE: How will car modifications affect your insurance premiums

Third-party, fire, and theft (TPFT) car insurance

Third-party, fire and theft (TPFT) car insurance offers a step up from TPO by adding coverage for fire and theft of your vehicle. However, it still doesn't cover damage to your own car in an accident. This means you'll be responsible for repair costs if you're involved in a collision, even if you're not at fault.

TPFT might be suitable for those with older cars or lower market values, especially if they are concerned about fire or theft risks. However, if you own a newer or more expensive car, or if you want more comprehensive coverage for accidents, it's generally recommended to opt for a comprehensive car insurance plan.

If you’re looking for coverage that’s in-between TPO and TPFT, you can consider collision-only car insurance.

>>MORE: Car insurance frauds in Singapore: What to look out for

Comprehensive car insurance coverage

Comprehensive car insurance offers the most extensive coverage among car insurance options in Singapore. It combines the benefits of TPO and TPFT, covering third-party liabilities, fire, and theft, while also adding protection for accidental damage to your own vehicle, medical expenses, and personal accident benefits. This makes it a preferred choice for many drivers, especially those with newer or high-value cars.

If you're considering the different types of car insurance coverage, comprehensive car insurance provides the most well-rounded protection. It offers peace of mind knowing that you're financially covered for a wide range of potential incidents, from minor accidents to major collisions, as well as non-accident related damages like floods and fire. 

» MORE: What is personal accident insurance?

Optional add-ons for car insurance

In addition to these three basic types of car insurance, you can choose various optional add-ons to enhance your coverage. The price of these add-ons vary across providers but they usually do not come with a high price tag, allowing you to tailor your automotive insurance to your specific needs (e.g. frequent passengers due to ridesharing, having valuable accessories in your car).

Always check with your insurance provider for the full Terms & Conditions before adding any add-ons to your policy.

Damage to vehicle from other causes: This may cover damage to your vehicle caused by events such as natural disasters, riots, or vandalism, which may not be included in standard comprehensive coverage.

Liability cover for passengers: While third-party coverage covers injuries to others, this add-on may provide additional coverage for injuries sustained by passengers in your vehicle. If you drive for a ridesharing service, think of this as being similar to public liability insurance for businesses.

Personal accident cover for passengers: This provides financial protection for your passengers in the event of an accident, covering medical expenses or other losses.

Medical expenses for passengers: Similar to personal accident cover, this add-on specifically covers medical expenses incurred by passengers due to an accident.

No-Claim Discount (NCD) protection: This protects your NCD (No-Claim Discount) in case you need to make a claim, preventing you from losing your accumulated discount on premiums.

Cover for personal belongings or car accessories: This add-on covers the loss or damage of personal belongings or accessories within your vehicle, such as sound systems or other modifications.

Others as specified by insurer: Your insurer may offer specific add-ons your plan is eligible for.

Once you’ve decided what add-ons to enhance your plan with, be sure to compare car insurance rates to see which insurance provider offers you the best value for money. We recommend getting at least three quotes to ensure you get the best coverage that meets your automotive needs while still fitting comfortably into your overall financial plan.

>>MORE: What car insurance add-ons are worth spending on

Types of car insurance

Third-Party Only (TPO)

What is it?

TPO is the most basic car insurance required by law in Singapore. It covers damage or injury you cause to other people and their property in an accident. However, it doesn't cover any damage to your own vehicle.

Is it required?

Yes, it's mandatory for all vehicles in Singapore.

Ready to learn more?

Check out SingSaver's coverage on the top 10 best car insurance options in Singapore.

Learn more

Third-Party, Fire, and Theft (TPFT)

What is it?

TPFT provides the same coverage as TPO (damage to others) but also adds protection for your own vehicle in case of fire or theft. It still doesn't cover damage to your car from accidents.

Is it required?

No, TPFT is not legally required but offers more protection than TPO.

Ready to learn more?

Check out SingSaver's coverage on the top 10 best car insurance options in Singapore.

Learn more

Comprehensive coverage

What is it?

Comprehensive car insurance offers the widest range of protection. It covers damage to your own vehicle and third-party liabilities, as well as other benefits like medical expenses and personal accident cover.

Is it required?

No, it's not legally required, but it's recommended for most drivers, especially those with newer or high-value cars, due to its extensive coverage.

Ready to learn more?

Check out SingSaver's coverage on the top 10 best car insurance options in Singapore.

Learn more

Back to top

• Which car insurance add-ons are worth spending on?

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• Everything you need to know about no-claims discount (NCD)

• Should you get usage-based VS mileage-based (pay-per-mile) car insurance?