Car insurance in Singapore: cover types and NCD explained

Last updated: October 2026

Every car on Singapore's roads must be insured, and the price of that insurance can vary a lot from one driver to the next. This guide covers the types of cover, how the No-Claim Discount works, and what affects your premium.

Insurance is compulsory

By law a car used on the road must be insured at least against liability for death or injury to other people. You can't renew road tax without valid motor insurance. When you buy a used car, the insurance must be in your name before the ownership transfer can be completed.

The three main types of cover

Cover	What it pays for
Third party only	Injury, death and damage you cause to other people and their property.
Third party, fire and theft	As above, plus your own car if it is stolen or damaged by fire.
Comprehensive	As above, plus accidental damage to your own car.

Policies also differ in the excess (the part of each claim you pay yourself), who may drive the car (named drivers), which workshops you can use, and extras such as a courtesy car or NCD protection.

How the No-Claim Discount (NCD) works

The NCD is a discount on your premium for each year without a claim. With most insurers it goes up in steps, typically 10%, 20%, 30%, 40% and then a maximum of 50% after five or more claim-free years. Making a claim usually reduces it, and how much depends on the insurer and the claim.

Your NCD generally follows you when you change insurer. The new insurer checks it with the old one.
Some insurers offer an NCD protector add-on so a claim doesn't cut your discount. Read the conditions carefully.
Your renewal notice shows your current NCD. Have it ready when you ask for a quote.

What affects your premium

The car: make, model, age, engine and value.
The drivers: age, driving experience and who else will drive.
Your NCD and claims history over the last few years.
The policy: type of cover, excess, workshop arrangement and add-ons.

Tips when renewing

Start looking a few weeks before your renewal date, so there's no gap in cover.
Compare the same things: cover type, excess, named drivers and workshop terms, not just the price.
Declare all drivers and past claims honestly. A wrong declaration can void a claim.
If you're buying a car, arrange the insurance before the transfer date.

Who prepares our quotes

Quotations on this site are prepared by our own insurance brokers, not a comparison website or an affiliate. We tell you what's covered and what isn't, and you decide whether to go ahead.

Frequently asked questions

Is car insurance compulsory in Singapore?

Yes. Every car used on the road must be insured at least against third-party death and injury, and you cannot renew road tax without valid insurance.

What is a No-Claim Discount (NCD)?

A discount on your premium that builds up for each year you don't make a claim. With most insurers it goes up in steps to a maximum of 50% after five or more claim-free years. A claim usually reduces it.

Can I keep my NCD if I change insurer?

Generally yes. Your new insurer will check the NCD with your previous one, so have your last renewal notice ready.

What decides how much my insurance costs?

Mainly the car, the drivers' age and driving experience, the NCD, claims history, the excess you choose and the workshop arrangement.

Who prepares your insurance quotes?

Our own insurance brokers. The quotation is free and there is no obligation to take it up.

Useful links

More guides

The Singapore car market explained — COE categories and bidding, renewal, OMV, ARF and PARF, depreciation, loans, insurance and the transfer process, in one place.
Renewing your COE — What renewing costs, 5 vs 10 years, timing, and what you give up.
Used car loans — How much you can borrow, for how long, and how to compare loans.

This guide is general information, not financial or legal advice. Rules change: always check the official sources above before you decide.