Frequently Asked Questions (FAQ) 2016-12-14T02:55:18+00:00

Frequently Asked Questions (FAQ)

Adding Young, Old or Inexperienced Drivers As Named Driver: How Much Do I Have To Pay and What Is The Excess Applicable? 2014-11-26T22:48:02+00:00

There is no additional premium imposed for an unnamed driver in this category to drive your car.

Often, most insurers will not want you to add a young, old or inexperienced driver into the policy. However if you are allowed to, additional premium is required. This may range from a couple hundred to almost a thousand dollars.

All insurers impose additional excess (usually between $1,500 to $3,000) for young, old or inexperienced drivers who wish to make claims under your policy.

The typical definition of a young, old or inexperienced driver is as follows:

a. Young drivers: Below 27 years old
b. Elderly drivers: Above 65 years old
c. Inexperienced drivers: Less than 2 years driving experience (with respect to license pass date)

Please note that the figures above differ from insurer to insurer.

I Have a Sunroof On My Car. Is This Covered? 2014-11-26T22:47:07+00:00

Yes. If the sunroof is factory fitted, most insurers will have factored this into their quotation. For aftermarket (non-factory fitted) parts, the insurer may require you to pay additional premium.

What Is Considered A Modification? 2016-12-14T02:55:54+00:00

Modification refers to changes made to a car which are directly related to how it operates as a car. This includes changes to engine performance, drive train, air intake systems, exhaust systems, transmission systems, or any changes to the handling characteristics of the car including suspension systems, strut towerbars, or bracing as well as any changes made to the control unit of such parts. This list is not exhaustive.

Routine maintenance where like-for-like parts are used, that is in accordance with the manufacturer’s standard specifications, will not be considered as modification.

Accessories are parts of your car which are not directly related to how your car operates and will not impact your insurance coverage. This include upholstery, audio equipment, multi media equipment, communication equipment, personal computers, satellite navigation and radar detection systems, provided they are permanently fitted to the car and have no independent power source.

Changes made to rims/tyres and body kits are not considered a modification when they are within the manufacturer’s defined and acceptable specifications. However please note that in case of any damage during an accident, insurers will only replace or repair with suitable part(s) in accordance with the manufacturer’s standard specification. (Source: GIA)

I Have Slight Modification to My Car (e.g. Sport Rim, Additional Accessories, etc.) Will This Affect the Premium? 2014-11-26T22:45:30+00:00

It depends on what type of modification is done. Normal sport rims will be okay. Other additional accessories like CNG kit, non-factory fitted sunroof, body kit, etc.. will usually require extra premium on top of the original premium. If you choose not to insure these accessories, your premium may remain the same.

Will the Car Insurance Policy Cover My Liabiliy for Other People’s Injury, Death and Legal Costs? 2014-11-26T22:44:42+00:00

Yes, insurers will cover your third party repair costs, bodily injuries, death, property damages, etc. Pls refer to the policy wordings of the specific insurer for more details.

How Is My Insurance Premium Determined? 2014-11-26T22:44:11+00:00

Insurers in Singapore use a “rating system” that considers the below factors when setting Motor Insurance premiums:

(i) Make and model of vehicle,
(ii) Engine capacity,
(iii) Age of vehicle,
(iv) Age, sex and occupation of drivers,
(v) Driving experience of drivers,
(vi) Claims history of drivers,
(vii) Type of cover

Insurers will give each factor a different weighting, according to available statistics and company’s claim profile.

How Do I Reduce the Premium For My Car Insurance? 2016-12-14T02:55:54+00:00

One good way is to compare motor insurance quotes. Nevertheless, cheaper car insurance may not automatically mean it is better. Buying up your excess, insuring without COE and opting for restricted age condition are other ways you can reduce your insurance premium further. A car insurance specialist will be able to advise you on what is suitable for you.

If My Car Is Stolen or Totally Damaged, How Will I Be Compensated? 2014-11-26T22:43:03+00:00

If your car is damaged beyond economical repair, stolen or destroyed by fire, the insurer will compensate you by sending you a cheque for the market value of your vehicle at the time of loss. Some insurers will deliver a new car (of the same make & model) to you if your vehicle is still within the limited warranty period.

What is Insured Without COE? 2014-11-26T22:42:34+00:00

This pertains to the admin procedure in case your car is damaged beyond economical repair, stolen or destroyed by fire.

If you insure your car with COE, the insurer will send you a cheque for the market value of your vehicle, plus its remaining COE value.

If you insure your car without COE, the insurer will send you a cheque for the market value of your car only. At the same time, LTA will send you a separate cheque for the remaining COE value.

Insuring with COE is largely a matter of convenience.

I’m Going to Buy a New Car But Have Not Decided on Which One to Buy. How Much is My Car Insurance? 2014-11-26T22:41:14+00:00

Generally, if you are concerned with price, get a common sedan car below 1600cc. It is cheaper and the car insurance is more affordable.

I’m an Employment Pass Holder. Why Are My Insurance Quotes Limited Even Though I Have More Than 10 Years of Driving Experience Overseas? 2014-11-26T22:39:41+00:00

Not every insurer is able to accept Employment Pass holders as customers. Nevertheless for those insurers that offer you a quote, they may be able to accept your overseas NCD (subject to approval). Note: You must get a document/letter from your (overseas) insurer to prove your NCD claims.

My NCD Increased by 10% and I Have No Claims in the Past Year. Why Did My Car Insurance Premium Become More Expensive? 2014-11-26T22:38:10+00:00

There could be an increase in claims for your make and model, leading to higher premiums. Or the price may be driven by inflation. When repair costs, legal fees and medical costs (et cetera) increase, so must insurance premiums to keep up with these costs in general.

What Happens When I Buy Up My Excess? 2014-11-26T22:36:22+00:00

When you buy up your excess, the final insurance premium goes down. In order to know what your final excess is, you have to find out if the original excess is waived off or not.

What Is Restricted Age Condition? 2014-11-26T22:35:50+00:00

Some insurers offer a motor insurance package that restricts a driver’s age (eg. above 45 years old) and driving experience (usually above 2 years). The authorised and named drivers must also comply to this condition. By limiting the insurance coverage (in terms of age and driving experience), you can reduce your insurance premium. After all, you may not need anyone else to drive your car.

Can A Car Owner Have No Driving License? 2014-11-26T22:34:58+00:00

Yes. It is possible to buy a car even if you have no driving license. Someone else will have to drive it, obviously. In this case, the main driver has to be named in the car insurance document. This is known as an Insured Not Driving policy.

If I Sell My Car, What Should I Do With My Motor Insurance? 2014-11-26T22:32:23+00:00

You can cancel your motor insurance policy by sending (i) the original Certificate of Insurance & (ii) the car sales agreement document to the insurer. They will process it and send the pro-rated refund to you.

Please note that calculation for the refund differs from insurer to insurer. It’s usually not proportional to the remaining unused coverage days.

I Sold My Car About 13 Months Ago and Had 50% NCD. Can I Still Enjoy My 50% NCD If I Take Up a New Car Insurance Now? 2014-11-26T22:30:55+00:00

Almost every insurer in Singapore will recognise your NCD within 12 months after you have sold your car. Beyond that, the NCD may not be recognised anymore.

What Is The Difference Between Distributor Workshop & Authorised Workshop? 2014-11-26T22:23:20+00:00

The Distributor Workshop(s) is where your car dealer request you send your car for warranty and maintenance purpose.

The Authorised Workshop is where the insurer requires you to send your car for claims related repair. For normal maintenance and for non-claims repair, you do not have to restrict yourself to authorized workshops.

If I Made A Claim For Windscreen Damage, Does It Affect My NCD? 2014-11-26T22:21:46+00:00

No. Windscreen damage claims will not affect your NCD. Only own damage claims & 3rd party claims affect your NCD.

Should I Add a Named Driver to My Motor Insurance Policy? 2016-12-14T02:55:54+00:00

If there’s someone else who frequently drives your car, you should. Here’s why:

Your car insurance policy covers your “authorised drivers”. An authorised driver is anyone you allow to drive your car. But if this person’s details is not listed in the policy document, there may be an additional excess imposed.

By adding a Named Driver, he or she can enjoy the same excess as you as long as he’s not classified as an elderly, young or inexperience driver. (If he is under such classification, his excess will be higher.)

What Are Different Ways That I Can Pay My Road Tax? 2014-11-26T22:17:34+00:00

There are 4 different ways to pay your road tax:

1) You can pay online at through internet banking, OR
2) You can pay at any AXS machine, OR
3) You can pay at Post office, OR
4) At any Vicom inspection centre (Inspection Centers will usually want to see an original CI)

A list of Singapore Post Offices can be found here:

You can find the nearest AXS machine by using this tool:

A list of inspection centers can be found here:

What’s Covered In A Third Party Only (TPO) Policy? 2014-11-26T22:15:46+00:00

With TPO coverage, you’re insured against (i) Death or injury to other parties, & (ii) Damage to other parties’ property.

Please note that if your car is still under financing/hire-purchase, the finance company restricts your choice of coverage to TPFT & Comprehensive only.

What’s Covered In A Third Party Fire & Theft (TPFT) Policy? 2014-11-26T22:14:17+00:00

With TPFT coverage, you’re insured against (i) Death or injury to other parties, (ii) Damage to other parties’ property, (iii) Fire damage to, or theft of, your vehicle.

What’s Covered In A Comprehensive Policy? 2014-11-26T22:13:45+00:00

Essentially, with a Comprehensive coverage, you’re protected against:

(i) Death or injury to other parties,
(ii) Damage to other parties’ property,
(iii) Fire damage to, or theft of, your vehicle,
(iv) Accidental damage to your vehicle

Often, the policy may include Personal Accident & Medical Expenses coverage.

What Are The Different Types Of Coverage To Protect My Car? 2014-11-26T22:12:37+00:00

There is Comprehensive coverage (which is the most common), Third Party Fire & Theft as well as Third Party Only coverage.

More details can be found by clicking on this link:

What is NCD (No-Claim Discount)? 2016-12-14T02:55:54+00:00

NCD (No-Claim Discount) is an incentive given by insurers to lower the car insurance premium of safe drivers. For more information about NCD, please click on the link here:

What is No-Claim Discount (NCD) Protector? 2016-12-14T02:55:55+00:00

The No Claim Discount (NCD) Protector is an extension of your motor car insurance policy. It allows you to make a claim under your policy without losing your NCD (%) status. This benefit is only available to you if your NCD is 50%. (A few insurers like Tenet allow their clients to add on this benefit if their NCD is 30% and above.)

(NCD protector requires additional premium of about 10% above quoted price)


You can preserve your NCD. This is especially important because the insurer will load (increase) your premium after a claim. Considering the fact your gross premium will be high for the next 3 years, it’s quite a relief when you can get 50% discount instead of 20%.


NCD protector is only recognised by your existing insurer. This means you will not be able to maintain a 50% NCD if you switch to another insurer. As a result your NCD will be 30% lesser if you insure with a different insurer.

For more information on NCD Protector, please click on the link here:

What is Excess and How Does It Apply To Me? 2014-11-26T22:07:30+00:00

Excess is the amount you have to pay before an insurance claim is paid out. Here is a detailed explanation on Car Insurance Excess (with illustration) to make this term easier to understand:

If I Made A Claim, Will My NCD Be Affected? 2014-11-26T22:09:21+00:00

It depends. Under the new Barometer of Liability Agreement (BOLA), if your liability in that accident is no more than 20%, then your NCD will NOT be affected. Otherwise your NCD will drop by 30% after each claim.

What Is Certificate of Merit? 2016-12-14T02:55:55+00:00

If you’ve not had any demerit points for three consecutive years, you are entitled to a Certificate of Merit (COM) from the Singapore Traffic Police. Should your NCD be 30% and above (for private car policy) or 20% (for privately owned commercial vehicle policy), most insurers will reward you with a 5% COM Discount.

Is My Car Covered In Malaysia? 2014-11-26T22:11:29+00:00

Your car insurance policy applies while you are driving in West Malaysia and even parts of Thailand, within 50 miles of the border between Thailand and West Malaysia.