Car insurance is a legal requirement for all vehicle owners in Singapore. Beyond legal compliance, the right coverage can protect you financially in the event of accidents, theft, or damage.

There are three main types of car insurance coverage in Singapore, each offering different levels of protection. Understanding their differences will help you choose the most suitable policy for your needs.

1. Third Party Only (TPO) Coverage

This is the most basic form of car insurance required by law in Singapore. It primarily protects third parties — other road users or property owners — if you cause an accident.

Coverage includes:

  • Death or bodily injury to third parties, including passengers
  • Damage to third parties' property (e.g., vehicles, buildings)

Key points:

  • This type of insurance does not cover damage to your own car.
  • It also doesn't cover accidents that happen within private compounds.
  • TPO is generally only suitable for older vehicles with low market value, where owners prefer to minimize premium costs.
  • If your car is still under hire purchase (i.e., financed), you may not be allowed to purchase TPO coverage.

2. Third Party, Fire and Theft (TPFT) Coverage

TPFT provides all the protection of TPO, with added coverage for loss or damage to your vehicle caused by fire or theft.

Coverage includes:

  • Death or bodily injury to third parties
  • Damage to third parties' property
  • Loss or damage to your car due to fire
  • Loss or damage to your car due to theft

Key points:

  • It does not cover damage to your own car resulting from accidents or vandalism.
  • TPFT is usually cheaper than comprehensive coverage but offers limited protection.
  • It can be suitable for fully paid-up older cars, where owners mainly want to protect against third-party liabilities and total loss scenarios.
  • If your car is financed, check with your hire purchase company first, as they may not allow TPFT.

3. Comprehensive Coverage

Comprehensive insurance offers the broadest and most complete protection. It includes everything covered by TPFT, plus additional benefits for your own vehicle.

Coverage includes:

  • Death or bodily injury to third parties
  • Damage to third parties' property
  • Fire or theft damage to your vehicle
  • Accidental damage to your vehicle (e.g., collisions, malicious acts, windscreen damage)
  • Personal accident cover (for private cars only)
  • Medical expenses (for private cars only)

Optional benefits (available with additional premium):

  • Windscreen damage
  • Damage from riots, strikes, civil commotion, flood, or windstorm
  • Liability of passengers for acts of negligence
  • Personal accident benefits for passengers
  • No-Claim Discount (NCD) protection (for private cars)
  • Additional excess or riders like towing service, loss of use benefit, or free choice of workshop

Key points:

  • Comprehensive coverage is typically required for new cars under financing, because the car technically belongs to the finance company.
  • Many insurers bundle optional benefits into their policies, while others offer them as paid riders.
  • It's the most popular choice among Singaporean car owners, as it provides the best all-round protection.

4. Act Liability Only Insurance (Embedded)

This is a compulsory minimum coverage in Singapore that covers only death and bodily injury to third parties, including passengers.

It does not cover damage to property or vehicles and is not usually sold as a stand-alone policy. Instead, this coverage is embedded in TPO, TPFT, and Comprehensive policies to satisfy legal requirements.

Choosing the Right Coverage

The type of car insurance you should choose depends on several factors, including:

  • Car age and market value – Older, fully paid cars may justify TPO or TPFT to save costs.
  • Financing – If your car is under hire purchase, Comprehensive coverage is often mandatory.
  • Your budget – Comprehensive coverage costs more but offers the widest protection.
  • Risk appetite – Consider how much financial risk you're willing to bear in the event of damage.

Summary Table

Coverage Type Third Party Injury Third Party Property Fire & Theft Accidental Damage Own Car Protection Typical Use Case
Act Liability Only ✅ ❌ ❌ ❌ ❌ Legal minimum (embedded in other policies)
Third Party Only (TPO) ✅ ✅ ❌ ❌ ❌ Older cars, low value, fully paid
TPFT ✅ ✅ ✅ ❌ Partial Low-value cars, want theft/fire cover
Comprehensive ✅ ✅ ✅ ✅ ✅ New cars, financed cars, full protection

Final Thoughts

While TPO and TPFT may be sufficient for older, low-value vehicles, Comprehensive coverage remains the most popular choice in Singapore, especially for new or financed cars.

Be sure to review your policy document carefully and consider adding optional benefits that match your lifestyle and risk exposure. A well-structured car insurance policy can provide peace of mind on Singapore's busy roads.