Consequences of Driving Without Car Insurance in Singapore

insurance policy paper with magnifying glass

In Singapore, the price of car insurance depends heavily on many factors. Most importantly, it can skyrocket in premiums especially if you were involved in any accidents recently, or have any offences on your driving record. Even for someone with a clean record, the average cost of car insurance can range from S$700 to exceeding S$3,000. 

However, attempting to drive without car insurance is risky and could instead end up costing you many things. Penalties might include thousands of dollars, your driving licence and even jail time. But what does the law say exactly regarding the consequences of driving without insurance?


Legal Consequences

The Singapore Motor Vehicles Act states that someone found driving a motor vehicle in Singapore without insurance coverage will be guilty of an offence. The law penalises uninsured drivers to the tune of a S$1,000 fine, a prison term of up to three months, or both. Additionally, the driver might suffer the loss of driving privileges for up to twelve months

By choosing to contravene the law, you could find yourself paying a much higher price than the couple hundred, or couple thousand dollars, you might spend on a car insurance premium.

However, there are several exceptions to this law. You will not be found guilty of this offence if:

  • If the car in question does not belong to you or is in your possession under a contract of hiring or a loan
  • If you’re using the car in the course of your work
  • If you genuinely did not realise, nor have any reason to believe, that a valid insurance policy was not in effect


What is Fronting?

Seeing how a poor driving record might impact your driving insurance premium, some people with a flawed record might be tempted to avoid paying the higher premium that goes along with being classified as a “high-risk driver”. This practice is called “fronting”.

Fronting is when one attempts to get a cheaper rate on your car insurance by using the details of a different, and often better, driving profile. In essence, it is a form of insurance fraud, as you are lying to your insurance provider by providing them with fake information. 

If you attempt this strategy to avoid paying higher car insurance premiums, you could find your claims repudiated and your policies cancelled entirely, especially if you get in an accident. 



At the end of the day, while nobody enjoys paying for car insurance in Singapore, attempting to avoid it by breaking the law is likely to cost you much more than your premium would. 

There are ways, however, to ensure you’re not paying more than you need for your premium. If you’re interested in learning more about how to get the best bang for your buck when shopping for car insurance, consider reading these guides on how to choose a car insurance plan, and therefore, save the most money.

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