By The Big Buy desk · Last verified 4 October 2026
Car insurance in Singapore is compulsory: it is against the law to drive without cover for third-party bodily injury. Beyond that legal minimum, you choose between three common levels. Third-party cover pays for injury to others and damage to their property. Third-party, fire and theft adds fire damage to, or theft of, your own car. Comprehensive cover also pays for accidental damage to your own car, windscreen damage and more. Your no-claim discount (NCD) rewards claim-free years with a lower premium, and under the industry’s Motor Claims Framework every accident must be reported by the end of the next working day, even if you settle privately.
Insurance is the part of car ownership nobody enjoys buying. Ten minutes understanding it now can save you a painful bill, and a lost discount, later.
Quick facts
- Legal minimum: cover for third-party bodily injury; driving uninsured is an offence.
- Three common levels: third-party; third-party, fire and theft; comprehensive.
- NCD: a discount earned when no claim has been made on your policy for a year or more.
- Excess: the part of each own-damage claim you pay yourself; it varies by driver and policy.
- Reporting: every accident, by the end of the next working day, to an approved reporting centre or authorised workshop.
- Pricing: insurers use risk factors beyond the car’s value, so premiums can rise even without a claim.
Comprehensive or third-party: what each covers
| What happens | Third-party | Third-party, fire and theft | Comprehensive |
|---|---|---|---|
| You injure or kill someone else | Covered | Covered | Covered |
| You damage someone else’s property or car | Covered | Covered | Covered |
| Your car catches fire or is stolen | Not covered | Covered | Covered |
| Your car is damaged in an accident | Not covered | Not covered | Covered, minus the excess |
| Windscreen damage | Not covered | Not covered | Usually covered |
| Personal accident or medical cover for you | Not included | Not included | Often optional add-on |
For a new or high-value car, and almost always for a financed one, comprehensive is the norm; lenders typically require it. For an older car worth little, third-party, fire and theft can make sense, as long as you could afford to repair or replace the car yourself.
How the no-claim discount works
The NCD is a discount on your premium that builds up with each year you make no claim with your insurer, up to the maximum on that insurer’s scale. Making an at-fault claim usually cuts it back sharply, which is why many drivers pay for small scrapes themselves. Some insurers sell an NCD protector that keeps your discount after a claim; read what it covers, because it protects the discount, not the premium itself. Ask for the insurer’s NCD scale in writing before you buy, and check that your NCD carries over if you switch insurer or change car.
After an accident: what to do
- Stay safe and call for help if anyone is hurt.
- Exchange details: the other driver’s name, NRIC, phone number, address, vehicle number and insurer. If they refuse, at least note the registration number.
- Take photos of the scene, the damage and both cars’ positions.
- Report to your insurer at an approved reporting centre or authorised workshop by the end of the next working day. Weekends do not count, so a Saturday-night accident can be reported by Monday.
- Report even if you settle privately. All accidents must be reported under the Motor Claims Framework.
- Accidents with Malaysian-registered vehicles also need a police report.
Reporting an accident is not the same as making a claim, and GIA notes that reporting does not by itself mark you as a high-risk driver. Insurers may decline to renew policies for drivers who fail to report accidents, have several traffic offences or a poor claims record.
The WahLiao Verdict
Buy comprehensive while your car is new or financed, then review each renewal as the car ages. Compare quotes on the same terms: who may drive, the excess, the workshop you must use, and whether new or reconditioned parts are fitted. Guard your NCD, but never at the cost of failing to report an accident on time. Report every bump; decide later whether to claim.
Questions people ask
Why did my premium go up without a claim?
Insurers price on a range of risk factors and claims costs across the market, not just your record, so premiums can rise even when you have not claimed.
Named driver or any authorised driver?
Named-driver policies are often cheaper but restrict who may drive. If an unnamed or young driver crashes, a higher excess may apply. Check before lending your car.
Do older drivers pay more?
GIA says insurers in Singapore typically do not charge older drivers more on age alone; claims history matters more.
Is insurance part of road tax renewal?
Valid insurance is needed to renew road tax. See our guide to how road tax is calculated.
Sources: General Insurance Association of Singapore, motor insurance overview, consumer guide to cover types, Motor Claims Framework, no-claim discount and premiums and renewal; Singapore Statutes Online, Motor Vehicles (Third-Party Risks and Compensation) Act. Policy wording governs. The Big Buy explains; it does not advise.
Read next: Road Tax in Singapore · ERP 2.0 and the On-Board Unit · Back to The Big Buy
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