Best Car Insurance Singapore 2026 — Compare Premiums, NCD & Save
Car insurance is mandatory in Singapore and can cost anywhere from $800 to $3,500 per year. The difference between the cheapest and most expensive quote for the same car and driver can be 40–50%. This guide compares premiums from every major insurer, explains NCD and excess, and gives you 10 proven strategies to lower your premium.
TL;DR
- Cheapest comprehensive: DirectAsia and FWD (10–25% below traditional insurers)
- Best for high NCD: NTUC Income and AXA (strong NCD protector options)
- NCD maxes at 50% after 5 claim-free years — protect it with NCD Protector ($50–$150/yr)
- Raising voluntary excess to $1,000–$2,000 can cut premiums 10–20%
- Always compare 4+ quotes — prices for the same profile can vary by 40%+
Types of Car Insurance in Singapore
Singapore law requires all vehicles to carry at least Third-Party Only insurance. There are three types of car insurance, each offering different levels of coverage:
Comprehensive
Third-Party, Fire & Theft (TPFT)
Third-Party Only (TPO)
Top Insurers Breakdown
DirectAsia
- Pricing model: Direct-to-consumer (no agent commissions). This is why their premiums are consistently 10–25% lower.
- Claims: 24/7 hotline + online claims portal. Average claims settlement: 5–10 business days for simple claims.
- Workshops: Panel workshops (cheaper) or authorised dealers (higher premium option).
- Add-ons: NCD Protector ($50/yr), windscreen cover ($30/yr), personal accident ($40/yr).
- Caveat: No physical offices. All interactions are online or by phone. Not ideal if you prefer face-to-face service.
FWD
- Pricing model: Digital-first with lean operations. Competitive with DirectAsia.
- Claims: Online claims submission. FWD MAX rewards for safe driving.
- Workshops: Authorised workshops for comprehensive plans. No restriction on workshop choice.
- Add-ons: NCD Protector, personal accident, car rental during repairs ($50–$80/yr).
- Standout: Simple, transparent pricing with fewer hidden exclusions.
NTUC Income
- Market position: Largest general insurer in Singapore. Co-operative heritage means member-focused.
- Claims: Excellent reputation. Orange Force accident response team. Wide workshop network (100+ partners).
- Workshops: Extensive panel including major authorised dealers.
- Add-ons: NCD Protector ($80/yr), 24-hour roadside assistance, courtesy car during repairs.
- Standout: Most trusted brand for claims service. Slightly higher premiums but worth it for peace of mind.
AXA
- Market position: Global insurer with strong Singapore presence. Known for innovation.
- Claims: AXA SmartClaims digital process. Good settlement times.
- Workshops: Premium panel including luxury brand workshops.
- Add-ons: SmartDrive telematics (up to 20% discount for safe drivers), NCD Protector, Malaysia/Thailand extension.
- Standout: Best for drivers who go to Malaysia regularly. Telematics discount is genuinely achievable.
Etiqa
- Market position: Growing insurer backed by Maybank. Competitive pricing strategy.
- Claims: Online claims portal + call centre. Average processing times.
- Workshops: Tow-to-anywhere service (you choose the workshop, even non-panel).
- Add-ons: NCD Protector, personal accident up to $50K, daily transport allowance during repairs.
- Standout: Best workshop flexibility. The tow-to-anywhere feature means you are not locked into panel workshops.
NCD (No Claim Discount) Explained
NCD is the single biggest factor affecting your car insurance premium. Understanding how it works can save you hundreds of dollars every year.
How NCD Works
- Year 1 (no claims): 10% discount
- Year 2 (no claims): 20% discount
- Year 3 (no claims): 30% discount
- Year 4 (no claims): 40% discount
- Year 5+ (no claims): 50% discount (maximum)
On a base premium of $1,600, a 50% NCD means you only pay $800. Making one claim typically resets your NCD to 0% (some insurers reduce by 30% instead). This is why many drivers choose to pay for minor repairs out of pocket rather than making a claim.
NCD Protector
- What it is: An add-on that lets you make one claim per year without losing your NCD.
- Cost: $50–$150/year depending on the insurer and your NCD level.
- Worth it? If you have 40–50% NCD, absolutely. Losing 50% NCD on a $1,600 base premium means paying $800 more next year. The $50–$150 NCD Protector fee is cheap insurance against that loss.
- Limitation: Usually only protects against one claim per year. Multiple claims in the same year will still reset your NCD.
Pro tip: If your NCD is at 50%, always add NCD Protector. The math is simple: $100/year for the protector vs potentially $600–$800/year in lost discount. For minor scrapes under $1,000, consider paying out of pocket even with NCD Protector to keep your claims record clean for future renewals.
Understanding Excess
Excess (also called “deductible”) is what you pay out of pocket per claim. Understanding the different types of excess helps you make smarter coverage decisions.
Compulsory Excess
Voluntary Excess
Section Excess
Example calculation: If you have a $500 compulsory excess + $1,000 voluntary excess, and you make a claim for $3,000 in repairs, you pay $1,500 out of pocket and the insurer pays $1,500. For claims under $1,500, it makes no sense to claim — you would pay the full amount anyway and lose your NCD.
10 Tips to Lower Your Car Insurance Premium
1. Compare at least 4 quotes
Prices for the same profile can vary by 40%+ between insurers. Use comparison sites like GoBear, MoneySmart, or SingSaver to get multiple quotes quickly. Always include at least one direct insurer (DirectAsia or FWD).
2. Maintain your NCD
50% NCD saves you the most. Avoid claiming for minor damages under $1,000–$1,500. Pay for small repairs out of pocket to protect your discount.
3. Increase voluntary excess
Raising your voluntary excess from $0 to $1,000 can cut your premium by 10–15%. Only do this if you have savings to cover the excess in case of a claim.
4. Install a dashcam
Some insurers offer 2–5% discounts for cars with dashcams installed. Beyond the discount, dashcam footage can help prove you are not at fault, protecting your NCD.
5. Add named drivers only
Listing only named drivers (instead of “any driver”) reduces your premium. “Any driver” cover adds 15–30% to your premium because the insurer cannot assess the risk profile of unknown drivers.
6. Choose panel workshops
Opting for panel (non-authorised) workshops instead of authorised dealer workshops can save 5–10% on your premium. The trade-off is workshop quality, though many panel workshops are excellent.
7. Bundle insurance products
Some insurers offer multi-policy discounts. Bundling car insurance with home or travel insurance from the same provider can save 5–10%.
8. Use telematics programmes
AXA SmartDrive and similar programmes use an app to track your driving habits. Safe drivers can earn discounts of up to 20% at renewal.
9. Renew early
Many insurers offer early bird discounts (2–5%) for renewing 2–4 weeks before your policy expires. Do not wait until the last day.
10. Negotiate at renewal
If you have a competing quote that is cheaper, call your current insurer and ask them to match it. Retention is cheaper than acquisition — many insurers will offer a discount to keep you.
Making a Claim — What to Know
When accidents happen, knowing the claims process can save you time, money, and stress.
Immediately After an Accident
- Ensure everyone is safe. Call 995 for ambulance if needed.
- Take photos of all vehicles involved, damage, road conditions, and number plates.
- Exchange particulars with the other driver(s): name, NRIC/FIN, contact, insurance details.
- File a police report within 24 hours if there are injuries, the other driver is uncooperative, or government property is damaged.
- Report to your insurer within 24–48 hours.
- Send your car to an approved workshop (within 72 hours for most insurers).
When NOT to Claim
- Repair cost is less than your excess amount
- Repair cost is close to or less than the NCD you would lose
- Minor cosmetic damage that does not affect safety or function
- You are at fault and the repair is under $1,500–$2,000
Claim or pay out of pocket? Quick math: if your NCD is 50% and your base premium is $1,600, losing your NCD costs you $800/year extra for 5 years to rebuild it = $4,000 total. So if the repair cost is under $4,000, it is often cheaper to pay out of pocket and preserve your NCD. NCD Protector changes this calculation.
Frequently Asked Questions
How much does car insurance cost in Singapore?
Comprehensive car insurance costs $800–$3,500/year depending on your car model, age, driving experience, NCD, and claims history. A Toyota Corolla with 50% NCD and an experienced driver pays around $800–$1,200. A new BMW with no NCD could be $2,500–$3,500.
Which is the cheapest car insurance in Singapore?
DirectAsia and FWD consistently offer the lowest premiums due to their direct-to-consumer model. They are typically 10–25% cheaper than traditional insurers for the same coverage. Always compare at least 4 quotes as the cheapest option varies by profile.
What is the maximum NCD in Singapore?
The maximum NCD in Singapore is 50%, achieved after 5 consecutive claim-free years. This effectively halves your base premium. Making a claim typically resets your NCD to 0%. NCD Protector add-ons ($50–$150/year) let you make one claim without losing your discount.
Can I transfer my NCD to another person?
NCD in Singapore is tied to the policyholder, not the vehicle. You can transfer your NCD when you change cars. However, you generally cannot transfer NCD to another person, except in certain cases like transferring between spouses (some insurers allow this). Check with your insurer for their specific NCD transfer policy.
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Sources
- General Insurance Association of Singapore
- MAS — Insurance Regulation
- NTUC Income — Motor Insurance
- DirectAsia — Car Insurance
- FWD — Motor Insurance
- Etiqa — Motor Insurance
- LTA — Motor Vehicle Insurance Requirements
Insurance premiums are indicative and based on publicly available information. Actual premiums depend on driver profile, vehicle type, and claims history. Always obtain direct quotes.
Disclaimer: This article is for informational purposes only. Car insurance premiums are indicative and vary based on individual circumstances. Always obtain actual quotes from insurers for accurate pricing. WhyNotDeals is not a licensed insurance agent and does not receive commissions from any insurer mentioned in this article.
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