Age and gender are two of the main factors insurance companies use when determining car insurance premiums. Insurers consider these characteristics as valuable information about your driving experience and the likelihood that you will get into an accident.

The less likely you are to get into an accident based on these two factors, the less cost the company stands to incur by insuring you, and the cheaper the quotation you will receive.

But this variation makes it somewhat difficult as a potential customer to know if you’re being offered a fair rate, or if you’re being ripped off.

With that in mind, we’ve crunched the numbers to find the average cost of car insurance in Singapore depending on your age group and gender. We hope that this arms you with the knowledge you need to recognise a good deal when you see one.

Average car insurance costs by age

The ValueChampion team collected quotes from the major insurers in Singapore to see how age affects the cost of car insurance.

The following rates assume five years’ driving experience and a No Claims Discount (NCD) of 0 per cent for consistency, and as such do not take into account the significant discounts you would receive for more years of driving experience and a higher NCD.

For example, for those who have clean driving records, their NCD could save them more than 50 per cent on their car insurance premiums.

Average car insurance cost for drivers in their 20’s

Generally speaking, insurance companies in Singapore charge the highest rates for younger drivers, whereas generally older drivers (until their mid-50s) tend to get much cheaper rates.

We found that drivers in their 20’s are charged an average premium of $2,223, approximately 36 per cent more than the average rate charged to drivers in their 40’s ($1,637). This is because younger drivers statistically pose a much greater risk of having an accident, due in part to their relatively fewer years of driving experience.

In addition to a lack of driving experience, rates increase for younger drivers due to their propensity for reckless driving. This is exemplified when studying the quotations we collected, in which all drivers had the same driving experience but were of different age.

Young and inexperienced driver excess for drivers in their 20’s

Drivers in their 20’s should also note that in addition to the higher premiums, they may well be obligated to pay a Young and/or Inexperienced Driver Excess (typically in the range of $2,000 to $3,000) on top of the mandatory standard excess they have to pay whenever they file a claim.

This is something that is very important to pay attention to, as different companies designate different age definitions for young and/or inexperienced drivers under which the fee is imposed.

What does this mean if I fall into the age category of “Young and/or Inexperienced Driver”? If your insurance policy has a standard excess of $600, and a Young and/or Inexperienced Driver Excess of $2,500, you’ll have to pay $3,100 out of your own pocket every time you have an accident before you receive any benefits from your insurer.

If you’re in your 20’s, we highly advise you to read the fine print closely to see what you’ll be obligated to pay before committing to a car insurance plan.

It may be worth paying a slightly higher premium if the plan comes with a significantly lower Young and/or Inexperienced Driver Excess.

Average car insurance cost for drivers in their 30’s to 50’s

While car insurance premiums decrease substantially for both male and female drivers in their 30’s and 40’s, we found that insurance premiums generally begin to rise again once drivers enter their 50’s.

This is because many insurers consider drivers to grow more accident-prone as they age. We found that drivers in their 50’s had an average premium of $1,784 or nine per cent increase from those in their 40s.

Many of the insurance companies charged higher rates as well for men and women in their 60’s than men and women in their 50’s. We strongly advise elderly customers of car insurance to pay close attention to this as they consider which plan to buy.

Average cost of car insurance by gender

We found that male drivers typically pay more for their car insurance premiums compared to females. Drivers in their 20’s had the biggest premium cost difference between genders, with men paying an average of 12 per cent more than women for their car insurance policies.

Our 2024 data showed that men in their 50’s and 60’s continue to pay slightly higher premiums than their female counterparts by a few dollars.

Men have to pay higher premiums than women do across all age groups because insurance companies consider them to be far more accident-prone and therefore a greater risk.

These rates assume five years’ driving experience and a No Claims Discount (NCD) of 0 per cent, and as such do not take into account the significant discounts you would receive for more years of driving experience and a higher NCD.

For example, for those who have clean driving records, their NCD could save them up to 50 per cent on their car premiums.

** Based on single male/ female driving a 2020 Toyota Corolla Altis 1.6 (0 per cent NCD, five years driving experience).

Methodology

To arrive at our determinations of the average cost of car insurance for Singaporean consumers, we culled data and collected quotations from leading car insurance providers in Singapore.

In order to standardise our results, we needed to make certain assumptions about the type of plan and level of coverage sought by the average consumer.

This study assumes standard comprehensive coverage, since comprehensive coverage is compulsory for owners driving cars less than 10 years old that are still under financing. Due to the costliness of cars in Singapore, this makes it the most common type of insurance plan bought.

In an effort to ensure that quotations reflected comparable levels of coverage, we standardised by selecting basic tiered comprehensive policies which are generally considered a “value” plan that excludes other “bells and whistles” optional features.

The driver profile we used to get quotations held constant on all variables apart from age and gender. He/she is a single (unmarried) driver of a 2020 Toyota Corolla Altis 1.6, and a first-time car owner and relatively new driver, with five years’ driving experience, no claims filed, and 0per cent NCD (No Claims Discount). He/she works indoors as a professional. Average costs reflect the mean of quotations collected for a male and female driver profile.

Quotations and information used for the purpose of this study were collected from five car insurers in Singapore.

These companies were chosen based on their popularity with consumers in Singapore as well as the ease of acquiring quotations and detailed information about their plans.

Consumers should make informed and calculated decisions by collecting more information on a product, looking at all the facts, and making prudent comparisons.

ALSO READ: Why the cheapest car insurance plan isn’t always the best

This article was first published in ValueChampion.