Types of car insurances can be bit confusing to new comers to the world of insurance. However, once you are well versed with these terms, it is quite easy. Comprehensive car insurance, Third party only car insurance and Third party and fire and theft only car insurance are the common terms used when you go to buy car insurance.
There are three types of car insurances in Singapore.
- Comprehensive car Insurance
- Third Party, Fire and Theft car Insurance
- Third Party only car insurance.
Various companies in Singapore provides car insurance but may offer them in different marketing packages, however the basic idea of these types remain the same. These types of car insurances are meant to offer various levels of insurance coverage to the insurer.
To complete beginners, Third party only car insurance covers only the third party, meaning any one else than you and the car when it comes to insurance claims. You are covering yourselves with any damages you may have to pay to third party due to an accident involving you and your car.
Third party fire and theft type of car insurance, includes third party but also include protection for your car in case where it is damaged due to fire or lost due to theft.
Comprehensive as the name suggest is most comprehensive and includes all the possible covers.
Let’s have a look at each of these types of car insurance in Singapore, so that we understand which ones are the best for your use case.
Comprehensive Car Insurance
Comprehensive is the most complete cover and protects you from the car dangers faced by you, your car, or even third party that occur by your usage of the car. Comprehensive covers also cover you from damages that might happen to your car due to natural acts like floods and disasters.
Insurers may offer more optional benefits on comprehensive cover- for e.g, your workshop choice, NCD Protection etc.
It is good to note that some financial institutes like banks where you loaned your new car from may require you to subscribe to Comprehensive Cover types only. Always make sure to check if you are under a legal requirement to subscribe to an Comprehensive car insurance.
Third Party Fire and Theft Car Insurance
Third Party, Fire and Theft covers are kind of the middle tier covers and is a good compromise for buyers who do not want full protection. As the name goes, these cover types, protect the policy owner from damages arising to Third Party and also includes damages that may occur due to fire and theft of your car.
Good to note, as your car gets older, usually 10 to 15 years old, insurance companies do not offer Comprehensive Covers. In that case Third Party, Fire and Theft Covers are the best available choices. Third party Fire and Theft Car insurance is also known as TPFT in the insurance world.
Third Party Only Car insurance
Third party only insurance covers meet the minimum legal requirements for a car insurance in Singapore. As the name goes, these policies only cover damages that may occur to Third Party only due to your usage of the car. Third Party cover types are usually the cheapest offerings from insurance companies.
Some individual who are holding a second car, or cars that are meant for selling usually have them covered with third party only for the time being.
Third party only insurance is also known as TPO car or motorcycle insurance in the insurance world.
Cost of Comprehensive vs Third party car insurance
Comprehensive car insurance covers and offers lots of benefits, and hence are usually costlier than TPFT or TPO car insurance.
Third party or TPO Car insurance are the cheapest where as Third party Fire and Theft Car insurance costs lie in the mid range.