Image via Flickr user Cecilia Frankland

1. Third Party Only

In an accident, Third Party Only (TPO) insurance covers the other guy. In other words, the insurance will only cover your legal liability coverage for any third party injury or property damage. If you have TPO insurance, it’s only paid out once they prove it’s your fault. TPO is also the cheapest type of insurance plan.

2. Third Party, Fire, and Theft

This insurance plan works both ways. It doesn’t just cover the third party, it also covers your own damages or loss to your vehicle caused directly by fire or theft including your legal liability for any third party’s injury or property damage.

3. Comprehensive Coverage

Comprehensive coverage has the widest coverage. This insurance plan is the most common one in Singapore, not least because many car loans require it. This plan covers you for death or injury to other parties, damage to other parties’ property, fire, theft, accidents, and medical costs arising from the accident. This also means that it will cover your loss or damage to your vehicle and your legal liability to third party’s injury and property damage.

The three kinds of coverage also come with extras, which will add up to your premiums but with even more coverage for your insurance.

Below are the extras that you could add to your coverage:

· Windscreen damage

· Damage arising from riot, strike, or civil commotion

· Damage from flood or windstorm

· Liability of passengers for acts of negligence

· Personal accident benefits for passengers

By Shubhreet Kaur

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