Used car or secondhand car insurance in Singapore

If you buy or sell a second hand car or a used car, you might wonder if the car insurance can be transferred as well? Are there any specific insurances for second-hand cars in Singapore? Are there limitations to the car insurances offered for older used cars? Let’s discuss everything you should know about a used car or secondhand car insurance in Singapore.

Can car insurance be transferred in Singapore?

Car insurances are quoted on the profile of the car as well as the driver. For example, below are few pointers that an underwriter may decide the premium on.

  • Car’s make
  • Car’s model – number of doors, engine capacity etc.
  • Car’s age
  • Car’s usage
  • Main driver’s driving experience and records – previous accidents and/or claims etc
  • Main driver’s NCD or no claim discount
  • Main driver’s age
  • Number of other drivers on the policy etc

As we see, there is a significant number of driver factors, that impact the premium of car insurance. A safe driver with a very good driving record may pay a lesser premium for the same car than a driver who has had say an accident record. Hence, when you buy a second-hand car or used car, the insurance as such has to be new or adjusted for the premium.

A new owner’s car insurance premium will be different. Thus car insurances can not be transferred. You may check with the insurance company if they can issue you the insurance policy for a discount or promotion (since you keep the insurance policy with the same insurer) and then charge you the new premium.

Is car insurance for used cars mandatory in Singapore

Car insurances are mandatory for all cars in Singapore irrespective of their age or ownership. Even if you buy a used or second-hand old car, an insurance policy is mandated.

It is also required that the insurance policy is under your or the buyer’s name, for the full period of the vehicle’s valid road tax during the transfer of the vehicle ownership.

However, insurers may not offer all types of insurance policies for old cars or cars above 10 or 15 years old. Let’s look at what kind of insurance policies can old used cars be insured with?

What type of car insurance for a used car?

Car insurances for used or second-hand cars are no different than new car insurances, but there are fewer options if the second-hand car in question is a very old car.

Firstly, let us understand the three main types of car insurance policies in Singapore:

  • Third-party only
  • Third party and Fire and Theft
  • Comprehensive policy.

As the name suggests, third party only insurance covers damages to a third party, i.e, the insurer will pay out to cover damages done by you to a third party or property involved in the accident. Any damages to you or your vehicle have to be covered by you outside the insurance.

Similarly, third party and fire & theft policies, cover the third party but also include coverage to damages done to your vehicle due to fire or by theft.

On the other hand, comprehensive policies are more expensive and cover your car more thoroughly as compared to TPO or TPFT policies.

Now, insurers usually stay away from offering Comprehensive policies to older cars. Older cars tend to break down often and it might also be more expensive to replace the parts if damaged. As such, if your used or second car is older than 10 or 15 years old, you may only have the option of ‘third party only’ or ‘third party and fire & Theft policies’.

However, if your used or second hand is quite recently registered unit or well within the age of being called ‘young car’, most insurers also offer comprehensive insurance policies.

Second-hand car insurance providers in Singapore

Most insurers in Singapore will insure used or second hand cars if they are above 10 to 15 years old. Below are few prominent car insurance providers in Singapore.

  • DirectAsia Insurance
  • FWD Insurance
  • NTUC Income Insurance
  • BudgetDirect Insurance
  • AIG Insurance
  • AXA Insurance
  • Liberty Insurance
  • MSIG Insurance
  • Tokyo Marine Insurance
  • China Taiping
  • India International Insurance
  • Sompo Insurance
  • Ergo Insurance
  • Aviva Insurance
  • Etiqa Insurance

We also suggest you to read our article on ways to save on car and motorcycle insurance premium to save on your insurance costs.

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