Third Party vs Comprehensive Motor Insurance
Third party car insurance, also commonly referred to as ‘third party only’ in Singapore, provides you with the minimum coverage required under Singapore law. If you find yourself involved in a collision with another vehicle, third party coverage can protect you from the costs of claims by a third party against yourself.
Third party only insurance on a motor vehicle provides you with coverage for liabilities to third parties for property damage, injury, or death. Singaporean law requires that all drivers in the country hold at least a minimum level of car insurance, which means all basic plans will cover:
- Death or bodily injuries to third parties (including passengers)
- Damage to property belonging to third parties
- Accidents occurring on the road and on private property
Such plans generally also provide coverage for property damage, despite there being no actual legal requirement to do so.
Third party fire and theft
Similar to third party policies, these plans include an important addition: vehicles are covered as property. The result is that property insurance can be applied to damages or loss resulting from a fire or a theft.
As the name states, third party car insurance does leave some coverage gaps that more comprehensive policies insure. Third party only plans are often the cheapest car insurance plans in Singapore, and that’s because they can make the following exclusions:
- Damage to your car and property
- Personal injury or death
- Roadside assistance
- Broken windscreen coverage for damage caused by debris or negligence