Every vehicle used on Singapore roads must carry motor insurance with at least third-party liability cover, under the Motor Vehicles (Third-Party Risks and Compensation) Act — driving uninsured is an offence. Beyond that legal floor, businesses choose between three cover levels (third-party only, third-party fire and theft, and comprehensive) and a set of commercial declarations — goods-carrying use, courier work, who may drive — that matter more to a paid claim than the premium ever will. Indicatively, commercial motor runs around S$1,000–2,500 per vehicle per year; actual premiums depend on vehicle, usage and drivers.
Three cover levels, one legal minimum
| Cover level | What it typically pays | Sensible for |
|---|---|---|
| Third-party only (TPO) | Injury to others and damage to their property — the legal minimum. Nothing for your own vehicle. | Old, low-value vehicles where you'd absorb the loss |
| Third-party, fire & theft (TPFT) | TPO plus loss of your vehicle to fire or theft | Mid-life vehicles; theft-exposed use |
| Comprehensive | TPFT plus accidental damage to your own vehicle, however caused | Newer or financed vehicles; any vehicle the business can't operate without |
Two practical notes: financed vehicles almost always require comprehensive cover as a condition of the loan, and for a business that depends on the vehicle daily, the real question isn't repair cost but downtime — ask about replacement-vehicle or loss-of-use extensions when comparing quotes.
Goods-carrying, courier and delivery use
Commercial motor policies are priced and worded around declared use, and the distinctions matter:
- Carriage of own goods — you deliver your own products, tools or stock. The standard declaration for most trades and retailers.
- Carriage of goods for hire or reward — you're paid to transport other people's goods: couriers, last-mile delivery, freight. A different (higher-risk, higher-premium) declaration; doing this work on an own-goods policy risks a declined claim.
- Cargo isn't covered by motor insurance. Motor policies cover the vehicle and liability, not the goods inside it. Goods in transit or marine cargo cover picks up the load itself — important for anyone moving valuable stock.
Delivery riders and private-hire drivers working through platforms also gained WICA-equivalent injury protection through platform operators from 1 January 2025 — a separate matter from the vehicle's insurance, but part of the same compliance picture for delivery businesses.
Named drivers, any-driver, and excesses
- Named-driver policies cover only listed drivers — cheaper, but a claim with an unlisted employee driving can be reduced or declined, and staff turnover makes lists go stale fast.
- Any-authorised-driver policies cover any employee driving with permission — the usual choice once vehicles are shared, at a somewhat higher premium.
- Young and inexperienced driver excesses apply extra deductibles when drivers under certain age or licence-experience thresholds are behind the wheel — check the policy's definitions against your actual staff before assuming anyone can drive.
- NCD (no-claim discount) builds per vehicle for claim-free years and materially cuts premium; it's one more reason small dings are sometimes better self-paid than claimed.
Running more than a few vehicles: fleet cover
Once a business runs several vehicles — the threshold varies by insurer, but around five is a common starting point — a fleet policy usually beats insuring each vehicle separately: one renewal date, one negotiation, simpler driver administration, and pricing based on the fleet's overall claims experience rather than each vehicle's individual NCD.
The trade-off is that your claims record becomes your rating: a fleet with disciplined drivers and telematics-style monitoring earns better terms each year, while a loss-heavy fleet pays for it across every vehicle. For growing logistics and services businesses, the practical move is to ask for fleet terms as soon as vehicle count and admin overhead start to hurt — a licensed professional can market the whole fleet in one exercise. Actual premiums depend on vehicle mix, usage and claims history; get quotes rather than extrapolating from single-vehicle rates.
Frequently asked questions
Is commercial vehicle insurance compulsory in Singapore?
Yes — any vehicle used on Singapore roads must carry at least third-party liability insurance under the Motor Vehicles (Third-Party Risks and Compensation) Act, and that applies to company vans, lorries and cars exactly as it does to private vehicles. Driving uninsured is an offence.
What is the difference between comprehensive, TPFT and third-party only?
Third-party only covers injury and damage you cause to others — the legal minimum; third-party fire and theft adds loss of your own vehicle to fire or theft; comprehensive adds accidental damage to your own vehicle from any insured cause. Financed vehicles typically must carry comprehensive as a loan condition.
How much does commercial vehicle insurance cost in Singapore?
Indicatively around S$1,000–2,500 per vehicle per year, varying with vehicle type, declared use, cover level, driver profiles and claims history. Courier and hire-or-reward use prices higher than own-goods delivery. Actual premiums depend on your business — get quotes on your real fleet.
Does commercial motor insurance cover the goods in my van?
No — motor insurance covers the vehicle and your liability to others, not the cargo. Goods in transit or marine cargo insurance covers the load itself, and any business moving valuable stock or customers' goods should price that cover separately.
Can any employee drive a company vehicle under our policy?
Only if the policy says so — named-driver policies cover listed drivers only, while any-authorised-driver policies cover any employee driving with permission. Even then, young or inexperienced driver excesses may apply. Check the policy basis before handing over keys, and update driver lists when staff change.
When should a business switch to a fleet policy?
Typically once you run several vehicles — around five is a common insurer threshold — a fleet policy simplifies administration and prices on your overall claims experience rather than per-vehicle NCD. Ask for fleet terms when renewals and driver admin across individual policies start costing real time.
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