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Having car insurance and warranty are two ways of protecting your vehicle (and yourself) against unforeseen damages and hefty repair costs. But what are the differences between the two?
Category: Car Ownership Advice
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All Singaporean drivers must have car insurance as a safeguard not only for themselves but other motorists as well. The amount of coverage varies, depending on what type of car insurance you opt for. Different policies may offer different things like medical bill coverage, legal fees, and repair costs.
A car warranty provides coverage for mechanical failures and flaws, which are specific forms of issues that your vehicle might face while in use. Although it is not mandatory to have a warranty for your car, it does lift a huge weight off your shoulders in terms of repair and replacement costs.
If you're still unclear about the differences between both forms of protection, read on!
Car insurance
Car insurance is mandatory for all motorists in Singapore. It is a contract between the car owner and the insurance company, in which a predetermined amount is paid annually in exchange for monetary coverage for accidents.
1. Types of car insurance available
For owners looking for a cheap insurance plan, TPO is the most basic plan as it only provides coverage for the damage costs and medical expenses incurred by an accident or collision in which the owner has inflicted damage onto another person's vehicle.
TPFT is a mid-tier plan that provides the same benefits as TPO with additional coverage of accidental fires and theft losses.
The top-tiered comprehensive insurance provides coverage for almost everything from the driver and other motorists' accidental damage and medical expenses. It also covers damages incurred by natural disasters such as floods/hail.
If your vehicle is still under financing, it is mandatory to purchase comprehensive insurance to protect the finance company if the car gets written off as a total loss after an incident.
2. Coverage available
Claims involving aftermarket parts are claimable under car insurance plans, and these include damage costs of additional body kits and car accessories. However, it is important to first go through the details with your insurance company before making such claims.
3. Additional features
However, if you intend to sell your car, your insurance benefits will not be transferable to the next owner.