Fleet insurance in Singapore: pricing and cover for 3 or more vehicles
How is a fleet policy rated?
A single commercial vehicle is rated on a tariff: vehicle type, capacity, age, use and driver profile. A fleet is rated on experience. The insurer looks at the fleet's claims over 3 to 5 years, the premium paid in those years and the number of vehicles. It calculates a burning cost, the average annual claims per vehicle, loads it for expenses and large-loss margin, and quotes a rate per vehicle or a lump sum.
This changes who controls the price. A sole trader with one van cannot move the tariff. A business with 20 vans moves its own rate every year through its claims record. Two fleets with identical vehicles can pay very different premiums.
Four items set the quote.
- Claims history. Number and cost of claims, split between own damage and third party, for each of the last 3 to 5 years, with large losses explained.
- Vehicle schedule. Type, laden weight, age and use of each vehicle. Lorries and refrigerated trucks rate higher than vans.
- Driver controls. Minimum age and licence period, whether drivers are named or any authorised driver, and the business's recruitment and discipline process.
- Risk management. Telematics, dashcams, speed limiters, driver training and a vehicle maintenance programme.
A broker prepares a claims experience report from the outgoing insurer and presents it with the risk management evidence. Fleets with a stable record are quoted by several insurers. Fleets with a poor record get fewer quotes and more conditions.
Comprehensive, third party fire and theft, or third party only
The three cover levels on a commercial motor policy are the same as on a private car policy. The difference is in the limits and excesses.
| Cover | Third party injury | Third party property damage | Own vehicle: fire and theft | Own vehicle: accident damage |
|---|---|---|---|---|
| Third party only (TPO) | Yes | Yes | No | No |
| Third party fire and theft (TPFT) | Yes | Yes | Yes | No |
| Comprehensive | Yes | Yes | Yes | Yes |
Third party only is the minimum the Motor Vehicles (Third-Party Risks and Compensation) Act requires. Etiqa's commercial vehicle product shows the Singapore market norm: unlimited cover for death or bodily injury to third parties and up to S$500,000 for damage to third party property, on all three levels.
Fleets often mix levels. New vans and lorries under finance go on comprehensive because the financier requires it. Vehicles over 8 to 10 years old with low market value may go on TPFT, since the own-damage premium can approach the vehicle's value. The policy schedule shows the level per vehicle.
Comprehensive cover on a fleet also carries add-ons: hire of a replacement vehicle, windscreen without excess, goods in transit, and cover for accessories such as refrigeration units and tail lifts. Each is an extension to be requested, not a default.
Fleet insurance in Singapore: drivers and excesses
Driver terms are where fleet policies most often fail at claim time.
Named driver policies cover only the people listed. Any authorised driver policies cover anyone the business permits to drive, subject to age and licence conditions. Fleets with staff turnover use any authorised driver. The premium is higher because the insurer cannot underwrite each person.
Excesses are layered. There is a standard own-damage excess per claim. Insurers add a further excess for drivers in higher-risk groups. Etiqa's commercial vehicle policy adds S$4,000 on top of the standard excess for drivers aged under 27 or above 75, or who have held a full licence for under 2 years. The additional excess applies to own-damage claims, not to third party claims. Other insurers set different thresholds; the policy schedule is the only reliable source.
Three things the fleet operator must do.
- Keep a driver register with date of birth, licence class and licence date, and check it against the policy's driver conditions before assigning a vehicle.
- Report changes. A new driver under the age limit or a vehicle change of use is a material fact.
- Hold the excess in the budget. A fleet of 15 vans with young drivers can face a S$5,000 to S$6,000 excess per own-damage claim once the standard and additional excesses are added.
A fleet with a clean record can negotiate the additional excess down or the age threshold lower at renewal. A broker tables that with the claims experience.
The 2025 figures behind motor pricing
Motor is the largest line in Singapore's domestic general insurance market, and it is not profitable.
The GIA reports motor gross written premiums of S$1.28 billion in 2025, up 5.2%. Motor claims rose 11% in the same year, with the number of accidents stable, which points to higher cost per claim. The segment recorded an underwriting loss of S$6.9 million, narrowed from S$33.8 million in 2024. Insurers are pricing to close that gap.
Road statistics moved the same way. The Singapore Police Force recorded 149 road deaths in 2025, up 4.9% from 142, and 7,560 accidents resulting in injury, up 7.2% from 7,053. Speeding violations rose 25.9% to 253,550 as speed enforcement was activated in more red-light cameras.
Commercial vehicles are a large share of the exposure. LTA counted 166,532 goods and other vehicles at the end of 2025, including 90,188 light goods vehicles, 32,718 heavy goods vehicles and 17,539 very heavy goods vehicles. Lorries with a maximum laden weight between 3,501 kg and 5,000 kg registered before 1 January 2018 must have speed limiters fitted by 1 July 2026; 80.1% had done so by 1 February 2026. The limiters cap speed at 60 km/h. Insurers ask for the installation record.
Telematics and what moves the fleet rate
Because a fleet is rated on its own experience, risk management has a direct effect on premium. Insurers in Singapore look for 5 things.
- Telematics. GPS tracking with speed, harsh braking and hours-of-use data. Some insurers offer a discount for fleets that share the data; all use it to settle disputed claims.
- Dashcams. Front and rear cameras cut third party claims costs by establishing fault. Several insurers require them on lorries.
- Driver training and discipline. A documented induction, periodic refresher and a points system for violations.
- Maintenance. Service records, tyre and brake checks, and for lorries the speed limiter certificate.
- Claims handling. Prompt reporting, use of the insurer's approved workshops and a single point of contact at the business.
Worked example. The figures are an example.
A logistics firm runs 12 vans and 4 lorries. Over 3 years it paid S$180,000 in premium and the insurer paid S$135,000 in claims, a loss ratio of 75%. Insurers price for a loss ratio nearer 60% to 65% after expenses, so the renewal rate rises. The firm fits telematics and dashcams and tightens its driver age rule to 25. If the next year's claims fall to S$30,000 on S$62,000 premium, the loss ratio is 48%, and the broker has grounds to seek a rate cut at the following renewal. The fleet controls its own price in a way a single vehicle never can.
The commercial motor page lists what the fleet submission needs.
Frequently asked questions
How many vehicles make a fleet policy?
Most Singapore insurers consider a fleet from around 3 to 5 vehicles under one ownership. Below that, each vehicle is rated on the standard commercial vehicle tariff. From roughly 10 vehicles upward the fleet's own claims record becomes the dominant rating factor.
Does a fleet policy need named drivers?
No. Fleets can be written on an any authorised driver basis, subject to minimum age and licence period conditions. Named driver cover is cheaper but fails when an unlisted employee drives. Businesses with staff turnover should use any authorised driver and keep a driver register.
Why is commercial vehicle insurance more expensive than private car insurance?
Commercial vehicles are driven more hours, by more drivers, under time pressure, and carry goods. Lorries cause more third party damage per accident. Motor claims across the market rose 11% in 2025 and the segment lost S$6.9 million on underwriting, so commercial rates carry that cost.
Can I insure vans and lorries on one policy?
Yes. A fleet policy schedules each vehicle with its own cover level, so vans can be comprehensive and older lorries third party fire and theft. One renewal date and one set of terms apply. Vehicles can be added and removed mid-term by endorsement.
Sources
General information only, not advice on any particular policy. Cover depends on the policy wording and the insurer's terms.