We know owning a car in Singapore is not cheap, and buying car insurance is not only protection for your prized possession but also mandatory. However, there are ways to get comprehensive coverage without having to pay for the unnecessary extras.

Car owners in Singapore typically renew their insurance and road tax on an annual basis. The price of policies range widely depending on the model of the car, your profile and the type of coverage you need. Majority of cars in Singapore are covered by comprehensive policies as car prices here are expensive.

Insurers can quote prices that are vastly different due to their different risk assessment policies and favouring a certain driver's profile.

In general, the following risk factors are considered when setting your premium:

  •        Make and model of vehicle
  •        Engine capacity
  •        Age of vehicle
  •        Age, gender and occupation of drivers
  •        Driving experience
  •        Claims history of drivers
  •        Type of cover

Your insurer will give each risk factor a weightage based on information from a range of statistics and past claims. 

In order to achieve lower motor insurance rates, you should take note of these:

1. Maintain a no-claims record

As with any health insurance, insurance premiums are always lower if you have no prior claims. This is even more important for motor insurance, as it reflects on how safe a driver you are who is not accident-prone. Claims against other drivers will not affect your record. This would enable you to enjoy a no-claims discount, which can be very substantial in the long run. 

No-claims discounts are usually presented as percentage discounts off your current premiums and increase with the number of years you maintain a clean driving record. One great thing is that NCD is transferable between all auto insurers in Singapore.

2. Offence-Free Discount

Being a safe driver on the road has its benefits. If you have not violated any traffic rules for three consecutive years, you are entitled to a Certificate of Merit from the Singapore Traffic Police.

Years Insured

No-Claims Discount

1st year upon renewal


2nd year


3rd year


4th year


5th year

50% (Maximum)

Should your NCD be 30% and above for a private car policy, some insurers may reward you with a further 5% discount upon presentation of your Certificate of Merit.

3. Restricted Drivers Discount

If you are age 30 or above with more than two years driving experience, insurers can offer up to 15% off the premium. The only point to note is that any other drivers below 30 and/or less than 2 years of driving experience would not be covered under the policy.