Driving a car in Singapore can be difficult due to the island’s numerous traffic lights. For a country this small, there are over 2000 traffic lights scattered throughout the island. This type of start-stop driving is ideal for electric vehicles. Whereas cars with internal combustion engines (ICE) would continue to burn fuel while idling at a red light, electric vehicles simply turn off. Singapore is already on its way to multiply the number of electric car charging stations by 2030. And in this blog, we talk about electric cars in Singapore and insurance policies for electric cars.
Find out what you need to know about electric car insurance in Singapore if you own or plan to buy an electric car. Do you have plans to buy an EV? With the popularity of electric cars, everyone today wants to have one.
Electric Cars in Singapore
Insurance companies appear to believe that cars still run on liquefied dinosaurs. Only a few insurance companies cover electric vehicles. There are fewer options, and it is more difficult for consumers to compare car insurance. Only three companies directly insure electric vehicles – AXA, Liberty Insurance, and NTUC Income. And their pricing structures are vastly different. It’s even more frustrating to realize that the cost of your car insurance is determined by a variety of factors. Other insurance providers that cover electric vehicles exist, but they are typically provided by individual car dealers or authorized brokers.
Make & Model of Your Electric Car
The model and the make of your electric vehicle will decide the premium amount. In general, if your car is of higher quality, your insurance premium will be higher as well. So, if you want to buy a Tesla Model 3, be prepared to pay a lot more to insure your vehicle.
Usage-based insurance (UBI)
Electric vehicles aren’t as common in Singapore as ICE vehicles. And the concept of usage-based insurance or UBI is popular here. The basic concept behind UBI is that you pay less because you drive less. It’s especially important if you drive an electric car for the occasional grocery run or fun spin around the island. But choose another mode of transportation for your regular commute if you choose UBI.
In Singapore, only NTUC Income currently provides UBI. This is only available for electric vehicles, and it provides a comprehensive third-party with fire and theft, or third-party only coverage. The rates per km are determined by one’s personal information and car model. The standard rules apply here – the higher the rate per km you pay, the more expensive your car is.
Items Not Covered by Insurance
NTUC Income shows that its UBI coverage policy does not include battery failures or other defects by default. For such coverage, you’ll need to add on the maintenance package, which includes a comprehensive list of the car parts. Also, with AXA insurance you will get the same coverage that only includes acts of God, accidents, and uncontrollable events. So, whether your electric car insurance will cover issues like electric car malfunctions, is something that will vary from company to company.
Only For Tesla Owners
Do you want to buy a Tesla? Please keep in mind that some of its most interesting features may not be covered. Teslas, for example, have a very cool feature in which the windshield extends all the way into the roofline. However, most insurers state that their windshield coverage ends where the car’s roofline begins. In turn, making it difficult to find insurance that covers the entire windshield. This is covered by Liberty Insurance, but not by NTUC Income or AXA. You might have a better chance of obtaining end-to-end coverage for your new Tesla through an authorized broker. So, now you all about electric cars in Singapore and the various insurance coverage.