Can You Insure a Car That’s More Than 10 Years Old in Singapore?

In Singapore, owning a car is a significant financial commitment, especially with the Certificate of Entitlement (COE) system in place. As a car approaches the end of its initial 10-year COE period, many drivers may begin to consider whether to scrap, sell, or renew their vehicle’s COE. One common question arises: Can you still buy insurance for a car that is more than 10 years old?

The short answer is: yes, you can. However, there are several legal and practical considerations you should keep in mind before renewing your COE or continuing to use an older vehicle. This article outlines some of these considerations to help you make a more informed decision as a vehicle owner.

Motor Insurance Requirements in Singapore

Under Singapore law, motor insurance is compulsory for any vehicle on the road under the Motor Vehicles (Third-Party Risks and Compensation) Act. It is an offence to drive without valid motor vehicle insurance, and the maximum punishment for this is a fine of $1,000 and/or an imprisonment term of 3 months. You will also be disqualified from holding a driving license for at least 12 months.

This means that if you intend to continue driving your car beyond the 10-year COE mark, you must have a valid insurance policy that covers at least third-party liabilities.

Renewing your COE

In Singapore, all vehicles require a COE, which gives you the right to own a vehicle that can be used on the road for a 10-year period.

At the 10-year mark, your COE expires. If you decide to keep your car, you must renew the COE either for 5 or 10 more years, depending on the category of the vehicle and its statutory lifespan. You are also required to have a valid motor insurance policy and renew your road tax.

Can I Get Insurance For My Old Car (> 10 Years) in Singapore?

Yes. Most major insurance providers in Singapore offer coverage for COE-renewed cars. However, there are a few important things to note:

• Limited coverage options: Many insurers may only offer third-party or third-party fire and theft (TPFT) insurance for older vehicles. Comprehensive coverage, which typically includes own damage, may be restricted or unavailable. For example, some insurance providers such as Budget Direct, Income, DBS DriveShield and Singlife do not offer comprehensive insurance policies for cars older than 15 years, while some motorists have been able to obtain comprehensive insurance from providers such as Liberty Insurance. You may also wish to consult an insurance broker to help source for a suitable insurance plan for your vehicle, especially if it is older than 15 years.
• Higher premiums or loading: Some insurers may charge higher premiums due to the increased risk associated with older cars — such as greater likelihood of breakdowns or difficulty sourcing spare or replacement parts.
• Vehicle inspections: Insurers may require your car to pass a vehicle inspection before they will issue a policy. This is to ensure the car is roadworthy and not in poor condition.
• Market value issues: Because COE cars are depreciated in value, any claims involving market value compensation (like total loss or theft) may result in lower payouts compared to newer cars.

What type of insurance coverage do I need?

There are three common types of car insurance in Singapore:

• Third-Party Only (TPO): This is the minimum legal requirement for driving in Singapore. It covers bodily injuries or property damage caused to others while driving, but does not cover any damage to your own vehicle. TPO plans are generally the most affordable option, but they offer limited protection.
• Third-Party, Fire & Theft (TPFT): This adds coverage for fire damage or theft of your car, but it still does not cover damage to your own car in an accident. In other words, you will still be responsible for repair costs if you are involved in an accident, even if you are not at fault.
• Comprehensive: This includes the coverage offered by TPO and TPFT, and also offers added protection for accidental damage to your own vehicle, medical expenses, and personal accident benefits. It is usually a preferred option for many drivers, especially those with newer or high-value cars.

For older cars with low market value, many drivers may prefer to opt for TPO or TPFT.

That said, if your COE-renewed car has been well-maintained, or has undergone expensive modifications or restorations, you may still want to shop around for comprehensive insurance, though options may still be limited.

What If I Can’t Get Insurance For My Old Car > 10 Years? 

If, for some reason, you’re unable to find an insurer willing to cover your 10+ year-old car, you cannot legally drive it. Without insurance, you will also not be able to renew your road tax.

In such cases, you might have to consider the following options instead:

• De-registering the car and scrapping it
• Selling it to an exporter or car dealer

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It is entirely possible to insure a car over 10 years old in Singapore — but with certain limitations. Do remember that insurance is a legal requirement for vehicles in Singapore, and while comprehensive policies may be harder to find, TPO and TPFT options are still available from most insurers.

If you’re thinking of renewing your COE, make sure to factor in the cost and type of insurance you’ll need, and always compare your options carefully.