Electric Car Insurance in Singapore: Cost, Coverage & Tips on Savings

You may have heard the hype this past year about electric vehicles (EVs) and how they are poised to take off in popularity. In Singapore, EVs are becoming increasingly common on the roads. In fact, a significant 19% of all vehicles sold here in 2023 were electric, and Singapore even has a fee rebate scheme for car buyers.

However, as with all new technologies, there are still some kinks that need to be ironed out before they can become widely adopted. One of these problems is insurance rates, with insurers needing to work out the rates for EVs.

Singapore is taking steps in the right direction, with the government and car companies alike making efforts to get more electric cars on the road. If you're considering getting an EV, this guide is everything you need to know about insurance for your car, from the best plans to understanding the cost breakdown and what you can do to potentially lower the cost of your car insurance.

If you are looking for insurance for your EV, then you are in the right place. We’ve shortlisted the best plans.

Great EV Protect delivers comprehensive insurance coverage, from giving you the choice of any preferred workshop and 24/7 roadside assistance anywhere in Singapore, West Malaysia and Thailand to coverage for your private charging station and home contents due to fire.

Income Insurance offers usage-based insurance to EV owners. In line with Singapore’s Green Plan 2030, Income Insurance offers three plans for electric cars. Here are the maintenance benefits you can expect from each plan. Other insurance details, such as liability, are the same as for conventional cars.

Note: The insurance premium you pay depends on the car's make and model. 

Below is an example of premium charges you can expect from Income Insurance.

Liberty Insurance has designed packages for Tesla owners. The Insure My Tesla package has the following benefits:

• 24/7 support in case of accidents or breakdown

• Charger liabilities protection

• Guaranteed auto protection benefit

• Coverage for LTA-approved Autopilot and Full Self-Driving Capability features for Tesla cars

• Loss of use benefits

• Medical expenses for the occupants of the car

• No-claim discount at 30%

• Personal accident benefits

• Provision of legal aid

Allianz offers comprehensive motor protection for EVs. Below are the benefits you can expect from this cover:

Just like conventional vehicles that require car insurance for financial protection in case of accidents or other unforeseen events, electric vehicles also need specialised insurance. EV insurance in Singapore is designed to address the unique risks and considerations associated with owning and operating an electric car.

This type of insurance, sometimes referred to as car insurance for EVs, provides coverage for damages to your EV, third-party liability, fire, theft, and other potential incidents, including damage to charging equipment and the battery.

The last thing any driver wants is to be caught unprepared and face significant financial burdens due to an unforeseen incident involving their EV. That is why, with the rising popularity of EVs, electric car insurance has become increasingly important to protect both drivers and their valuable investments.

As electric vehicles become increasingly popular in our little red dot, it's essential to understand the nuances of electric vehicle insurance. Let's explore the key aspects of insuring your electric car to help you make informed decisions about your car insurance needs.

While electric car insurance shares similarities with conventional car insurance, there are some key differences due to the unique characteristics of EVs:

Electric car insurance generally includes cover for similar incidents as conventional car insurance, such as accidents, theft, fire, and third-party liability. However, some EV insurance policies don't cover the following:

• Battery failure or defects by default. You will need an additional maintenance package that includes a list of parts that are likely to fail.

• Other insurance only covers accidents, acts of God, or uncontrollable events.

• Windshield coverage, especially for Teslas. Most insurance won't cover the extended windshield that goes to the roofline.

• Most insurers do not cover charging accidents.

Insuring an electric car is generally more expensive than insuring a gasoline-powered vehicle. This is because EVs, in general, cost more compared to conventional cars, and they are also more prone to damage. Plus, they are also known to be more expensive to repair. Although EVs generally experience less wear and tear, replacing EV components can be quite expensive.

That said, the cost of EV car insurance in Singapore is generally determined by the following factors:

The specific model of your EV plays a significant role in determining your insurance premium. High-performance EVs or luxury models generally attract higher premiums due to their higher value and potentially higher repair costs. Factors like the car's safety features and technology can also influence the premium.

Your driving history, including your age, driving experience, and claims record, also influences your insurance premium. Generally, younger, less experienced drivers with a history of accidents or traffic violations typically face higher premiums. This is because insurers perceive them as higher-risk drivers.

If you have accumulated a No-Claims Discount (NCD) by driving safely and not making any claims, you can enjoy significant discounts on your EV insurance premium. The NCD system rewards safe driving by progressively reducing your car insurance premium for each claim-free year.

As more and more people embrace EVs, the purchasing cost is decreasing. However, they are still expensive to insure. Just like conventional cars, here is how you can save on insurance costs:

Getting behind the wheel always comes with a certain level of risk, regardless of how experienced or cautious you are. However, safe driving habits demonstrate lower risk to insurers, leading to more favourable rates. That is why maintaining a clean driving record by avoiding traffic violations and accidents can significantly reduce your electric vehicle car insurance premiums.

Shop around and compare rates from different EV insurance providers in Singapore to find the most competitive premiums. Also, enquire about any available discounts, such as those for safe driving, bundling multiple policies, or installing anti-theft devices so you can secure the cheapest car insurance for your EV.

It may be worthwhile to explore tax credits or rebates offered by the government for electric vehicle owners. These incentives could help offset the overall cost of owning and insuring an EV, making it more affordable.

Some insurance companies offer rewards programmes that allow you to earn points or discounts for safe driving behaviour or for installing telematics devices that track your driving habits. These programmes can incentivise responsible driving and help you save on premiums.

Accumulate NCDs by not filing claims during the policy period. The longer you maintain a claim-free record, the higher your NCD will become, resulting in greater discounts on your premium. And, if you are switching to a new insurer, be sure to check if you can transfer your NCD.

Before purchasing car insurance for your EV, obtain quotes from multiple insurers to compare cover options and premiums. This will help you find the most suitable and cost-effective plan for your needs and budget.

You can also choose to opt for a higher voluntary deductible to reduce your premium. However, if you choose to do this, be prepared to pay a higher out-of-pocket cost in case of a claim. It is best to carefully assess your financial situation and risk tolerance before opting for a higher deductible.

Driving, no matter how safe or experienced you are, always carries an element of risk. Plus, electric cars and cars, in general, are a significant investment in Singapore, so you don't want to risk your life, your passengers' lives, or incur substantial costs if you get into an accident. 

That is why it is crucial to choose your EV insurance carefully and ensure your car insurance plan adequately covers potential expenses to avoid unexpected financial burdens. You should also be sure to explore ways to reduce insurance costs, such as maintaining a clean driving record, avoiding accidents and leveraging insurer-specific discounts.

Drive safe and enjoy the benefits of your EV!

Related to this topic:
How Much Does It Truly Cost to Maintain a Car in Singapore?

11 Fun (and Lesser-Known) Facts About Car Insurance For You Car Owners

Buying An Electric Car In Singapore: A Complete Guide

Car Insurance: What You Need To Know And How These 5 Factors Determine Your Car Insurance Premium 

5 Things to Consider Before Buying Car Insurance in Singapore

Still not sure about which insurance cover you should get? We can provide personalised insurance quotes for your car.