Car insurance in Singapore is compulsory by law if you want to put your car on the road. Failure to take out an auto insurance policy could result in prosecution if you are caught. Besides the legal aspect, car insurance makes good sense. In its most basic form, auto insurance protects you from financial loss if you are responsible for an accident that causes injury or damage to someone else or their property. A more comprehensive plan provides coverage additional for you in terms of damage to your car and medical treatment. You can also safeguard yourself financial from fire or theft of your vehicle.
There are many companies that provide auto insurance packages in Singapore. The General Insurance Association of Singapore is a body set up by a group of leading insurance firms. Its members include six companies that offer auto insurance schemes – American International Assurance, AXA, HSBC Insurance (Singapore), NTUC Income Insurance, Mitsui Sumitomo Insurance and Royal & Sun Alliance Insurance. The products to be highlighted here will focus on private policies rather than commercial.
American International Assurance (AIA) Company
AIA is one of the popular insurance companies in Singapore and is part of the global American International Group, Inc. The company has been operating in Singapore since 1931 and has more than two millions policies and five offices. In 2007, consumers voted the company as Readers Digest Trusted Brand – Gold Award winner. Its auto policies also come under the AIG (American Home Assurance Company) brand name.
AIA Private AutoPlan This is a comprehensive auto insurance plan that benefits owners of a new car and giving you a choice of workshops should your vehicle sustain damage in an accident. If your car is less than one year old, the plan pays you the full purchase price of a brand new car of the same make and model if your old car is completely destroyed in an accident. It also offers up to S$20,000 in personal accident cover, which means financial protection for your family in case of death or permanent disability. Additional benefits include cover for windscreen damage, passengers, third party liabilities caused by passenger negligence, personal cover for passengers of up to S$10,000 each, 24-hour breakdown services in Singapore and West Malaysia and cover during civil unrest and natural phenomena such as floods and earthquakes.
AIA Private AutoPlus This major difference with this comprehensive car insurance policy is that the insurance company guarantees the quality of repairs done to vehicle after an accident. Claims-related repairs must be performed by workshops authorised by the American Home Assurance Company (AHAC), located all over Singapore. For cars less than three years old, you can send it for repairs at the sole agent’s workshop. Other features are similar to the AIA Private AutoPlan, with up to S$50,000 worth of personal accident cover with the addition of a 50 per cent No-Claims Discount and free towing and roadside mechanical assistance anywhere in Singapore. You also get free checks twice a year at AHAC-authorised workshops.
AXA Insurance Singapore
With gross written premiums of more than S$207 million and total assets worth S$386 million in 2007, AXA Insurance Singapore is among the top general insurers in Singapore, and around the world. Their auto insurance products revolve around their two Smart brands, SmartDrive and SmartDrive MPV.
SmartDrive You can purchase comprehensive, third party fire and theft or third party under the SmartDrive packages. However, if you are still paying off your vehicle loan, you will be required to take out a comprehensive plan. The plans allow you to craft your premium payments to suit your profile and that of your vehicle’s, with coverage based on market value rather than the sum insured. This means you will receive payment for the full value of your car in case of serious damage or theft. Other benefits, depending on your package, include windscreen protection, natural disasters, civil unrest, personal accident coverage, passenger risk and liability and third party liability. You also get 24-hour assistance in Singapore, West Malaysia and peninsular Thailand. Optional additions include personal accident coverage of up to S$20,000 for passengers, personal accident for you and designated driver for up to $20,000 and a voluntary excess for premium discount.
SmartDrive MPV The MPV package offers extra financial security against medical expenses and towing charges on top of the benefits offered by SmartDrive. Exclusive benefits it claims to offer are personal accident coverage for all passengers, double person accident coverage for passengers below 12 and above 65, no additional excess for declared young and inexperience driver in case of claims, up to S$3,000 coverage for damage or theft of personal effects in Singapore and up to $2,500 coverage for loss or damage to car accessories. In addition, you get repatriation to Singapore for passengers and car from Malaysia and Thailand.
HSBC Insurance (Singapore)
This company is part of HSBC Holdings plc, one of the world’s largest financial institutions and headquartered in London. Its auto insurance product comes under the AutoSurance brand name, which gives you the option of two comprehensive plans – Classic plan for basic coverage and Premier plan for added benefits. You can also purchase extra protection on top of both plans.
AutoSurance Classic The Classic plan offers up to S$20,000 in personal accident coverage in case of death or permanent disability while driving, over and above any other life insurance plan you may already have. You can also receive up to S$500 in medical reimbursements for you and each of your passengers.
AutoSurance Premier If your car is less than 12 months old and it is a total loss because of an accident, you will be covered to buy a new car of the same make and model. Personal accident coverage is worth up to S$50,000 over and above other life insurance plans while you and your passengers are eligible for medical expenses of up to S$1,500 each. An exclusive benefit is a lump sum compensation payment of S$1,000 for expenses incurred from car theft and an extra S$1,000 as replacement expenses for loss of car because of theft. You can receive up to S$500 for loss of personal items in your car and up to S$500 per occurrence arising from theft or break-in. The plan also gives you a full waiver of up to S$2,000 of your policy excess if you are entitled to 40 per cent or 50 per cent of No Claim Discount (NCD). A 50 per cent waiver of your policy excess is available if your NCD is less than 40 per cent. The usual comprehensive benefits are available such as coverage for accident damage to your car, third party liability, windscreen coverage, personal accident coverage for passengers, protection for passenger negligence towards third parties, convulsions of nature, civil unrest and repairs at authorised workshops.
NTUC Income Insurance Co-operative Limited
NTUC Income is a co-operative insurance society formed in 1970 and has grown into one of the most influential life and general insurance institutions in Singapore. They have assets of more than S$21 billion and in excess of 1.8 million policy holders. Its auto insurances packages are based around the drivo brand, with Premium and Classic packages. NTUC offers third party and comprehensive plans.
drivo Premium NTUC claims to offer 15 per cent lower premiums than other companies through drivo, which allows you an interest-free installment payment scheme for auto insurance and road tax using GIRO or approved credit cards. Extra features include waiver of excess for all repairs and a courtesy car or daily transport allowance of S$50 for up to 14 days in case you car is in the workshop. Additional benefits allow for a five per cent loyalty rebate, 50 per cent NCD protection, no additional excess for elderly drivers and application approval within one day. You also enjoy 24-hour breakdown service and towing. With the Premium plan you can repair your car at a workshop of your choice. drivo Classic The key difference between drivo Classic and Premium is that, with Classic, you can only repair your vehicle at NTUC-appointed workshops.
Mitsui Sumitomo Insurance (Singapore)
This company is part of the MSI Group, which is one of the top five general insurance companies in Singapore, winning Best Overall Insurer awards in 1997, 2000, 2002 and 2006 from the Singapore Insurance Brokers’ Association. Its auto insurance program is based on the MotorMAX brand that includes Classic, Classic Flexi and Classic Saver. One of its special features is the company will pay in cash the full purchase price in case of total loss of the vehicle in an accident with 24 months from the date of first registration. Most other companies offer 12 months.
MotorMAX Classic This gives you your choice of workshop in case of repairs needed, along with regular benefits such as windscreen cover, loyalty rebate of 10 per cent with no claims, free NCD protector on third renewal with no claims, S$100 allowance for delayed repairs, 24-hour towing service, use of courtesy car during repairs, personal accident coverage for up to S$100,000 and medical expenses for authorised drivers and passengers at S$1,000 each.
MotorMAX Classic Flexi Flexi offers choice of workshop but 50 per cent waiver of excess if you choose an authorised mechanic. You can also enjoy the additional benefits afforded in the Classic plan.
MotorMAX Classic Saver With the Saver plan, you can only use authorised workshops for repairs while personal accident coverage is set at S$50,000 maximum and medical expenses at S$500 each. In addition, the Saver does not make you eligible for a full cash reimbursement to replace your old car in case of an accident resulting in damage beyond repair.
Royal and Sun Alliance Insurance
RSA is a global insurance group with offices in more than 30 countries. It is among the biggest foreign insurers in Singapore. Its main auto insurance product is Car Shield Plus, providing comprehensive protection.
Car Shield Plus This plan provides coverage for your car, accessories, spare parts as well as injury to others and their property in case of an accident. When it comes to repairs, your vehicle must go to one of the company’s appointed workshops. They also provide a 24-hour free accident hotline although roadside assistance and towing services involve a charge. Additional benefits include: passengers' acts of negligence, personal accident coverage for passengers up to S$10,000, damage caused by natural phenomena or civil unrest, rental car services during repairs to your vehicle and additional five per cent discount for drivers with at least 30 per cent No-Claims Discount, among others.
Final Thoughts
There are plenty of choices of companies and packages when it comes to auto insurance plans in Singapore. Even then, if you prefer not to spend time researching various policies, you can join the Automobile Association of Singapore (AAS). Automobile Association of Singapore has tie-ups with many insurance companies to provide specialised auto insurance packages with discounts. Its partnerships include AUTOCare, with Liberty Insurance, Royal and Sun’s Car Shield, AIA’s AutoPlan and AXA’s SmartDrive. The policies on offer in Singapore clearly go beyond the basic legal requirements of auto insurance. You can enjoy a range of benefits that protect you, your passengers and your vehicle from financial loss in the event of a car accident.
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