Having an accident can be costly physically and emotionally. Along with the high costs of repairing your car and taking care of your injuries, it has a ripple effect on your loved ones. From emotional trauma to loved ones worrying about your safety, an accident can take a toll on you and the people around you.
Car accident rate in Singapore
With a 25% increase of fatal accidents in Singapore in 2021, this could be your cue to protect yourself with car insurance. While the rise in numbers can be attributed to the resumption of activities after the circuit breaker, half of these accidents were caused by jaywalking.
In addition to jaywalking, drunk driving, running a red light at intersections and speeding also constitute the major part of accidents.
The upsurge in car accidents in Singapore could be your cue to start getting better protection with comprehensive car insurance! But with the three types of coverage available, namely comprehensive, third-party, and fire and theft, you might not be sure what difference in coverage each plan offers. Don’t worry because we have illustrated the main differences between each to help you protect yourself better!
What is multi-risk car insurance
Offering the highest level of cover, comprehensive car insurance covers you against damage to yourself and third parties. In addition to this, comprehensive auto insurance also covers damage caused by unforeseen circumstances such as fire, theft, storm, flood, and accident to your car.
To encourage policyholders to take care of their property and adopt responsible driving, this plan is subject to a deductible, also known as a deductible. This is the amount you will have to pay before your insurer covers the rest of the costs.
|Cost paid by the insurer = Cost of damage – Deductible|
To illustrate this, we’ll use Budget Direct as an example. At Budget Direct Insurance, the standard deductible for cars is $600. However, you have the option of reducing this excess amount to zero or increasing it to $1,500.
Using this example, if you chose the standard car deductible and the damage to your car cost $3,600, Budget Direct will pay you $3,000 to cover the repair costs.
Benefits of having comprehensive auto insurance
As the name suggests, comprehensive car insurance offers the most extensive level of coverage among the three car insurance plans.
Of course, depending on the plan level you choose as well as the features you choose to include in your plan, the level of coverage will be different. However, in most cases, comprehensive car insurance will cover the following:
- Damage to windshield or glass
- Damage to personal property
- Damage to third party property
- Bodily injury or death
- Injury to a third party or death
- Natural disasters – floods, storms, fires, fallen trees, etc.
ALSO READ: 11 fun (and lesser known) facts about car insurance for you car owners
In addition to car accidents on the road, comprehensive car insurance also covers theft and natural disasters. Also, unlike third-party and third-party, fire and theft plans, which only help you cover costs incurred in the event of third-party property damage and personal injury, the comprehensive plan also covers bodily injury and personal property damage.
So, with the additional cover, you can be sure that you and your car will be better protected when unfortunate events occur.
Although comprehensive auto insurance provides extensive coverage, there are still areas where it does not cover. These include and are not limited to:
- Vehicle wear
- Electrical or mechanical failure
- Damage caused by a driver without a valid driver’s license
However, every insurer is different. It is therefore important to check the coverage of the plan before purchasing it.
Full vs third party vs third party, fire and theft
To help you better understand the difference in coverage between the three different auto insurance plans, below is a chart that illustrates the level of coverage for each plan.
|Third party||Third Party Fire and Theft||Full|
|Injury to a third party or death||✓||✓||✓|
|Damage to third party property||✓||✓||✓|
|Natural disasters||✓ (Fire only)||✓|
|Damage to windshield or glass||✓|
|Bodily injury or death||✓|
|Damage to personal property||✓|
Room for customization
Compared to the third-party plan required by law, the multi-risk car insurance plan also allows more room for customization. Most insurance companies offer optional add-ons to your plans. Despite this, these add-ons are usually only available for the full plan as well as the third-party, fire and theft plan, for some companies.
The most common optional add-ons offered include Claims Discount Protection (NCD), the choice to choose your preferred workshop, and the Overseas Emergency Allowance.
Take FWD auto insurance for example. It only offers optional add-ons such as NCD protectors, privilege to choose your favorite workshop, overseas boosters and many more for their full plan. However, for their third-party, third-party, fire and theft plan, there is little room for such flexibility and customization. Obviously, the comprehensive car insurance plan allows for more room for customization.
Disadvantages of comprehensive car insurance: higher premiums
With the high level of coverage comes the high price. Due to its higher premiums than other plans, comprehensive car insurance is suitable for those with larger budgets. That said, it largely depends on the type of car and your driving record.
For cars that have depreciated, third party car insurance may be a better option because the cost of repairing your car may be lower and repairs are much easier to manage than higher value cars.
That said, you’re also paying for peace of mind while driving. Knowing that the cost of repairing your car in the event of an accident as well as your medical expenses will be partially covered, a car accident will be less stressful.
Find the cheapest car insurance in Singapore
Knowing that comprehensive car insurance can be expensive, we’ve selected some of our top picks to help you find the cheapest car insurance quote in Singapore.
FWD car insurance
PROMO: eligible customers can get up to 25% off
Get a quote Get a quote Consider this if you want high-value protection for your whole family or drive an SUV Read the review
- Third party damage coverage
- Vehicle Loss/Damage Coverage
- 100% of market value
Offering competitive pricing without skimping on features that other budget auto insurance plans may lack, FWD auto insurance is a great option for families looking for affordable auto insurance plans. With three different levels of coverage – Classic Plan, Executive Plan and Prestige Plan – for their Comprehensive, Third-Party and Third-Party, Fire and Theft plans, you can be sure you’ll be able to find a plan for yourself.
Singlife with Aviva car insurance
Get a quote Get a quote Consider this if you are a young driver between 25 and 30 years old or have a lot of car accessories Read the review
- Third party damage coverage
- Coverage in the event of loss/damage to the vehicle
- 100% of market value
With premiums that cost 30% less than the market average, Singlife with Aviva Car Insurance is also a great budget option. Although it may be affordable, it still offers great coverage. As part of their comprehensive car insurance plan, benefits such as personal accident, 24-hour roadside assistance and emergency assistance are already included.
If you want to compare them with other car insurance plans in Singapore, check out our full review of car insurance plans in Singapore to find the cheapest and best option and get a car insurance quote during that you are there! This way you can protect your car, yourself and your loved ones.
READ ALSO: Car warranty vs car insurance: what’s the difference?
This article was first published in ValueChampion.