Types of car insurances can be bit confusing to new comers to the world of insurance. However, once you are well versed with this, its quite easy. There are three types of car insurances in Singapore.
- Comprehensive car Insurance
- Third Party, Fire and Theft car Insurance
- Third Party only car insurance.
Various companies pack these insurance types with different marketing packages, however the basic idea of these types remain the same.
Comprehensive Car Insurance
Comprehensive is the most complete cover and protects you from the car dangers faced by you, your car, or even third party that occur by your usage of the car. Comprehensive covers also cover you from damages that might happen to your car due to natural acts like floods and disasters. Insurers may offer more optional benefits on comprehensive cover- for e.g, your workshop choice, NCD Protection etc. It is good to note that some financial institutes like banks where you loaned your new car from may require you to subscribe to Comprehensive Cover types only.
Third Party Fire and Theft Car Insurance
Third Party, Fire and Theft covers are kind of the middle tier covers and is a good compromise for buyers who do not want full protection. As the name goes, these cover types, protect the policy owner from damages arising to Third Party and also includes damages that may occur due to fire and theft of your car. Good to note, as your car gets older, usually 10 to 15 years old, insurance companies do not offer Comprehensive Covers. In that case Third Party, Fire and Theft (TPFT) Covers are the best available choices.
Third Party Only Car insurance
Third party only or TPO Covers meet the minimum legal requirements for a car insurance in Singapore. As the name goes, these policies only cover damages that may occur to Third Party only due to your usage of the car. Third Party cover types are usually the cheapest offerings from insurance companies.