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Types of Car Insurance and What Are They

28 August 2021
 
 

The world of car insurance is a complicated one. There are different types, rates, and coverage options that can be very confusing to navigate for most people. We are here to help you learn all about the basics so you can make an informed decision next time you’re looking for a policy.

Is safety your top concern? Do you need an affordable rate? Or are you looking for a low deductible? There are many types of car insurance to choose from in order to best suit your lifestyle and financial situation. Let’s take a look at the three common types: Third-party Only, Third-party Fire and Theft, and Comprehensive Coverage

 

3 Types of Coverage

 

Motorists in Singapore are required to have personal insurance policies that cover third party bodily injury. However, you can always purchase motor insurance for financial protection against any damages or losses that may arise from an accident - whether involving yourself as the driver or not!

A motor insurance policy may cost you a lot of money, but it can help protect your car in the event that someone else causes damage to it. You could also be covered for any damage caused by another party. It’s important to have coverage like this if you’re going out on the road anytime soon.

Motor insurance policies often have an excess that is imposed in the event of a claim being made against your policy. The more risk is taken on by the insurer, or company issuing you coverage with their motor vehicle insurance, generally correlates to higher amounts for this charge.

Third-party Only (TPO)

A TPO plan is liability coverage that only protects third parties when you are found to be at fault. This can include pedestrians or guard rails, for example. A typical third-party only policy provides coverage for damages that occur to other people’s cars or property in the event of an accident. This will not cover your car or anything belonging to yourself like any personal belongings inside.
 

Third-Party, Fire and Theft (TPFT)

TPFT car insurance is meant to cover you if your vehicle or property has been damaged or destroyed by fire, or stolen by another driver. TPFT will cover any loss or damage caused by a fire as well as the destruction of your property after being stolen. However, other incidents like corroding paintwork due to bird droppings are not covered under this type of plan since they would be considered indirect losses/damage on behalf of something else instead.

Comprehensive Coverage

Comprehensive car insurance offers the benefits of TPO, TPFT and accidental damage to your vehicle. Besides offering personal accident benefits, it also covers other medical expenses for passengers on board in case anything should happen during an unfortunate event.

 

Other Benefits that will affect your premium:

 

- Daily Transport Allowance

- Excess (Own Damage, Third Party, Windscreen)

- No Claim Discount

- No Claim Discount Protector

- Additional Named Drivers

- Any Workshop or Authorised Workshop

- Personal Accident Cover

- Medical and Dental Cover

- Safe Driver Discount

 

In Summary

 

There are many forms of insurance to consider when you’re looking for protection, but the breakdown is as follows: TPO only covers your third-party liabilities. It doesn’t cover other drivers who might be at fault in an accident that caused damage to their cars or injuries and death. TPFT provides coverage against some liability damages including fire; theft losses, however, it does not provide any coverage if someone else hits your vehicle. Comprehensive coverage includes more protections such as covering yourself and third parties in the case of accidents involving bodily harm.

For choosing the best Car Insurance that fits your needs, at Hin Lung Auto, we take our time to highlight the benfits and disadvantages of differing options and offer our recommendations to our clients. This enables our clients to make an informed decision when selecting an insurance policy that best meets their needs.

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