Commercial vehicle insurance cost in Singapore
Key takeaways
- Third-party cover for bodily injury is compulsory for every vehicle used on a Singapore road.
- No Singapore insurer publishes commercial vehicle premiums. Each vehicle or fleet is quoted on its own data.
- Motor claims rose 11% in 2025 while accident numbers stayed flat, so the average claim is larger.
- Goods carried in a vehicle are not covered by motor insurance. They need goods-in-transit or cargo cover.
Cover types and the legal minimum
The Motor Vehicles (Third-Party Risks and Compensation) Act 1960 sets the minimum. Section 3 makes it unlawful to use, or permit the use of, a vehicle on a road without third-party cover.
Three cover levels are sold:
| Cover level | What it pays | Effect on premium |
|---|---|---|
| Third party only | Injury and property damage to others | Lowest |
| Third party, fire and theft | Adds fire and theft of the insured vehicle | Middle |
| Own damage (full cover) | Adds accidental damage to the insured vehicle | Highest |
Vehicles on hire purchase or lease usually require own-damage cover under the finance agreement. Older vans with low market value are often insured third party, fire and theft.
The policy also sets who may drive. An "any authorised driver" clause covers any employee the company permits. A named-driver clause covers only the people listed.
How the market moved in 2025
The General Insurance Association of Singapore (GIA) reports motor premiums of S$1.28 billion in 2025, up 5.2%. Motor is the largest domestic class. Total domestic general insurance premiums were S$6.09 billion.
Motor claims rose 11% in the same year, while accident counts stayed flat. Accidents are not rising in number, but each costs more to settle on average.
For a fleet buyer, rising severity means rates follow claims cost, not claim count. A fleet with no change in accidents can still see its premium rise.
Two responses keep a fleet's own record in its favour. The first is reporting every accident promptly, with dashcam footage, so liability is settled early. The second is reviewing claims by driver each quarter, so repeat drivers are retrained or moved off driving duties.
What sets the premium
Eight factors set a commercial vehicle premium.
Vehicle class and laden weight
Goods vehicles are rated by maximum laden weight. The Land Transport Authority publishes the goods vehicle population by type and maximum laden weight. Heavier lorries carry more mass and cause more damage in a collision.
Use
A van used for the company's own goods rates differently from one carrying goods for hire. Delivery vans that stop often in traffic have more claims.
Drivers
Insurers rate the drivers' age, licence years and driving records. Young or newly licensed drivers raise the rate or attract an excess.
Cover level and excess
Own-damage cover costs most. A higher own-damage excess lowers the premium.
Vehicle value
The insured value sets the own-damage premium. Newer vehicles with high replacement cost pay more.
No-claim discount
The no-claim discount (NCD) is a reduction earned for claim-free years. On individual vehicles it attaches to the vehicle's policy. On a fleet policy, insurers usually rate the whole fleet on its claims record instead.
Fleet size and claims history
Fleets above a few vehicles are rated on their own loss record. Insurers ask for claims data covering recent years by vehicle and driver.
Risk controls
Telematics, dashcams, driver training and maintenance records support lower rates. Dashcam footage also speeds liability decisions on claims.
Driver injury and goods carried
Motor insurance covers the vehicle and third parties. Two exposures fall outside it.
Injury to the company's own driver. An employee injured while driving for work is covered under WICA, not the motor policy. WICA premium is rated on each employee's trade and declared annual earnings. Driver, dispatch and delivery roles rate well above office staff. The work is manual and exposed to road accidents every working day.
Goods in the vehicle. Motor policies exclude the goods carried. For example, a van carrying S$80,000 of stock needs goods-in-transit or cargo cover. Annual cover over a stated limit per vehicle is common.
A business buying motor, WICA and goods cover separately should line up the definitions. Gaps appear when a driver is also a loader, or when goods are left in a parked vehicle overnight.
Fleet cover is set out on the commercial motor page.
Worked examples
Example 1. A trading company with 3 vans for its own deliveries. Cover: own damage on 2 newer vans, third party, fire and theft on 1 older van. Driver ages and van values drive the premium. Each van carries its own NCD. Goods in the vans are insured separately under a goods-in-transit policy.
Example 2. A logistics firm with 40 lorries of mixed laden weights. Cover: fleet policy with any authorised driver. The fleet's claims record over recent years and the share of heavy lorries drive the rate. Telematics data supports renewal terms.
Example 3. A professional services firm with 6 company cars for senior staff. Cover: own damage, named drivers. Car values and drivers' records set the premium. Business use is declared so claims on client visits are not disputed.
Figures checked 14 November 2026.
Frequently asked questions
Why do goods vehicles pay more than private cars?
Goods vehicles cover more distance, stop more often and carry heavier loads. Heavier vehicles cause more damage in a collision. Commercial drivers also change more often than private car drivers, so insurers know less about who is driving.
Does a named-driver policy cost less for a company?
Often, because the insurer knows exactly who drives. The trade-off is that an unnamed employee driving the vehicle is not covered. Companies with rotating drivers usually need an any authorised driver clause.
What is the NCD treatment on a fleet?
Individual vehicle policies carry NCD on each vehicle. Fleet policies are usually rated on the fleet's overall claims experience instead. Moving vehicles from individual policies onto a fleet changes how claim-free years are counted.
Is goods-in-transit covered by motor insurance?
No. Motor insurance covers the vehicle and liability to third parties. Goods carried need goods-in-transit or marine cargo cover.
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.