Know Your Insurance: 3 Types Of Car Insurance Plans In SG

Everyone knows that life can be unpredictable at times, and, for the most part, the unexpected events that come our way are not all too pleasant. For those who own private vehicles and take to the roadways daily, accidents are one event nobody wishes to get into. Thus, to keep its citizens safe on the road, the Singapore government has made it a legal requirement for all motorists to protect themselves and others with car insurance. This insurance policy covers damages to third-party individuals during an accident in its most basic form. It includes virtually every kind of incident for the more comprehensive plans, such as floods, theft, fires, and more. Discover which programme is right for you with our overview of the three types of insurance plans you can get in Singapore.

Third-Party Only (TPO)

A third-party only insurance policy is the first and most basic type of car insurance available. Also known as liabilities coverage, its scope only protects affected third parties in an accident and does not include you or your vehicle. These third parties are your liabilities and include injured pedestrians, damaged guard rails, or other drivers and their cars.

TPO is generally suitable for car owners who only need essential protection for liabilities, are confident with taking on high financial risks, and are willing to pay for their damages. In addition, if driving is rarely something they do or if losing it will not drastically affect their way of life, TPO is a good enough insurance plan for their legal needs.

Third-Party Fire and Theft (TPFT)

Third-party, fire, and theft insurance plans are the middle-tier of car insurance policies that cover losses incurred from damages caused by fire and theft on top of the liabilities included in TPO. However, do note that other causes that indirectly result in loss or damage (such as bird droppings ruining the car’s paint job) are not covered.

TPFT car insurance is ideal for drivers looking to avoid paying out of their own pockets from losing the entire vehicle but are still willing to take on slight financial risks and pay for minor accidents. Moreover, this insurance policy is ideal for old cars that need more than just liabilities coverage but are not necessarily as extensive as that offered in comprehensive car insurance.

Comprehensive

Comprehensive car insurance includes all the benefits listed in TPO and TPFT, as well as any accidental damage to your vehicle, even those caused by natural disasters and often those that are self-imposed. This insurance policy offers personal accident benefits and includes medical expenses incurred by the passengers on board.

Singapore comprehensive coverage motor insurance is the only available option for car owners that take on a bank loan when purchasing their vehicle. The reason being is that this is the only insurance policy that protects the finance company if ever the car becomes wholly lost following an accident. Besides that, getting a comprehensive plan is best for drivers looking to minimise their financial risks as much as possible by being obligated to pay only the partial sum for the damages they cause.

A few more reasons to opt for comprehensive car insurance is if a driver is still inexperienced, they take to the roads daily, their vehicle is brand new, or has a high value, such as luxury cars that are certain to cost plenty to be repaired.

Conclusion

Car insurance is designed to protect car owners and give them peace of mind when behind the wheel. By making sure that every driver is liable for their actions, roads become much safer for everyone, and in the event of accidents, those involved are guaranteed to be protected.

If you search for the best car insurance plans in Singapore, India International Insurance is here to help. At III, we offer the three types of car insurance plans available today through our quick and seamless online process, all at affordable and reasonable prices. Learn more about our insurance plans today by sending us an enquiry.