In Singapore, it is mandatory to have a valid car insurance policy. Besides the legal requirement, it protects you against third party or personal injury liability, financial damages, or losses that may arise from an accident.
Insurance companies offer a wide variety of products to meet the individual needs, but you need to keep in mind that not all car insurance policies are the same. While it is easy to compare prices for many goods and services, such is not the case for car insurance as premiums are quoted on a case-by-case basis since they are influenced by a complex matrix of risk factors.
As a consumer, you need to be mindful that if the premiums are lower, there may be more restrictions that may apply to what is covered, and your options in the event of a claim. For example, lower-priced policies may come with restrictions such as on who is the main driver of your car or whether your car can only be driven by named drivers; where you can send your vehicle for repairs; or whether new or reconditioned parts are used. Higher priced policies usually cover all your authorised drivers who have a valid driving licence, and may allow more flexibility in your choice of repairers, etc.