Motor Insurance

---

Motor insurance, also known as car insurance, is a mandatory insurance policy in Singapore for all vehicle owners. It provides financial protection against losses and damages that can occur due to accidents involving your vehicle. This includes damage to your own car, damage to other vehicles or property, and injuries to yourself or others.

Purpose: The primary purpose of motor insurance is to protect vehicle owners and other road users from the financial consequences of road accidents. It ensures that victims of accidents receive compensation for their injuries and damages, and it shields vehicle owners from potentially massive liabilities.

Coverage: There are generally three main types of motor insurance policies in Singapore:

• Third-Party Only (TPO): This is the most basic and cheapest form of coverage. It only covers damages to the third party (other vehicles, property, or individuals) involved in an accident where you are at fault. It does not cover damages to your own vehicle.
• Third-Party, Fire and Theft (TPFT): This policy offers TPO coverage plus protection against loss or damage to your own vehicle due to fire or theft.
• Comprehensive: This is the most extensive type of coverage. It includes TPFT coverage and also covers damages to your own vehicle due to accidents, vandalism, natural disasters, and other specified perils, regardless of fault. It often includes personal accident benefits for the driver and passengers.

Use-Case: Imagine driving to work and you accidentally rear-end another car. The other car sustains significant damage, and its driver suffers whiplash. If you only had TPO insurance, your policy would cover the repairs to the other car and the medical expenses of its driver. However, you would have to pay for the repairs to your own car out of your pocket. If you had comprehensive insurance, your policy would cover the damages to both vehicles and the medical expenses of the other driver, as well as any injuries you might sustain, up to the policy limits.

TLDR: Car insurance is not just a legal requirement in Singapore; it's a crucial financial safeguard. Accidents can happen to anyone. The costs associated with vehicle repairs, medical treatments, and legal liabilities can be staggering. Hence, car insurance protects your finances, ensuring that you can get back on the road quickly and that accident victims are compensated. It provides you with a peace of mind, allowing you to drive with confidence, knowing you're protected against the unexpected.

To understand which motor insurance policy best suits your driving habits and needs, connect with our expert advisors.