Car insurance in Singapore is not a small add-on. For many private car owners, comprehensive insurance often sits around $1,200–$2,500 per year — and can rise to $3,000–$4,000+ for higher-risk profiles or higher-value cars.
Insurance matters because it is (1) recurring, (2) sometimes volatile at renewal, and (3) directly affects your true monthly ownership cost.
Start here (fast path)
If you want the yes/no decision lens: Is It Worth Owning a Car in Singapore?
| Profile | Typical Annual Premium (SGD) | What it usually looks like |
|---|---|---|
| Lower-risk driver + mass-market car | $1,200 – $1,800 | Higher NCD, clean history, normal repair exposure |
| Most common “average” profile | $1,500 – $2,500 | Typical approval band for many households |
| Higher-risk / higher-value profile | $2,500 – $4,000+ | Younger driver, prior claims, expensive model/repairs, low NCD |
These are modelling bands (decision use). Actual quotes vary by insurer and inputs. Your renewal can move year to year based on claims, market pricing and risk appetite.
Insurance is a dynamic risk price — not a fixed line item.
Many buyers allocate “around $100/month” and move on. That is often wrong.
Example:
That difference matters because insurance stacks on top of depreciation, fuel, maintenance, parking/ERP, and financing. If you want the full monthly model: True Monthly Cost of Owning a Car.
Insurance should be modelled over your intended holding period:
Depreciation is usually the largest cost in Singapore — but insurance is a persistent annual drag that can quietly distort your ownership math. For the full 5-year baseline: 5-Year Car Ownership Breakdown.
If you want the clean comparison: Car vs Ride-Hailing Break-Even Calculator. If you want the decision framework (not just math): Is It Worth Owning a Car in Singapore?
Cutting insurance blindly can create a “cheap premium, expensive claim” outcome. Use structured levers:
Planning principle: reduce premium by changing risk structure, not by hiding risk.
Don’t compare only the premium. Compare the real deal:
Then plug your insurance into the full ownership model:
Insurance won’t usually be your biggest cost in Singapore — COE-driven depreciation is.
But insurance is one of the most common places people under-budget, and that under-budgeting cascades into bad ownership decisions.
If you want the clean “is this rational?” check: run the break-even calculator and sanity-check against: the 5-year ownership model.
Comprehensive premiums commonly range from about $1,200 to $2,500/year for many drivers. Higher-risk profiles or higher-value cars can exceed $3,000–$4,000+ annually.
NCD, driver age/experience, claims history, vehicle model and repair costs, sum insured, excess level, workshop restrictions, and named drivers.
Depreciation is usually the biggest cost, but insurance adds persistent drag. Over 5 years, it can commonly add about $6,000 to $17,500+ depending on profile.