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Motor Insurance Premiums in Singapore Expected to Rise Further Amid Growing Claims and Repair Costs

Motor insurance premiums in Singapore are expected to continue rising in the coming months, as industry experts cite increasing claims and escalating repair costs as key contributing factors. This trend is placing added pressure on both insurers and vehicle owners, as reported by The Straits Times.

Source: Google
Source: Google

According to data released by the General Insurance Association (GIA) of Singapore, the first quarter of 2025 saw a 9.4% increase in gross written premiums for motor insurance, reaching $368.2 million, compared to the same period in 2024. Meanwhile, underwriting losses also grew by 14%, amounting to $13.3 million. This reinforces the ongoing financial strain within the motor insurance industry.


In a broader view, 2024 recorded underwriting losses of $33.8 million, a sharp rise from $7.7 million in 2023 and $21.6 million in 2022. These losses mark a stark contrast to earlier years, where underwriting profits reached $49.7 million in 2021 and $104.5 million in 2020. Simultaneously, total gross written premiums for 2024 rose 11.3%, totalling $1.21 billion.


Industry professionals point to several reasons for the upward pressure on motor insurance pricing in Singapore. Ms Judy Ng, Partner of Financial Services Consulting at KPMG Singapore, told The Straits Times that the increase in accident-related claims, the higher repair costs for electric vehicles (EVs), and the global inflation affecting vehicle part prices are all driving premium hikes.


While there is some hope that motor insurance premiums in Singapore may stabilise over time, Ms Ng cautioned that moderate increases are still likely in the near future. Insurers are expected to adjust their pricing models to account for rising claims costs, inflationary pressures, and emerging risks, especially as the EV market continues to grow.


As long as claim frequencies remain high and repair expenses continue to surge, motor insurance providers in Singapore are likely to pass these rising costs on to policyholders. This trend reinforces the importance for drivers to compare motor insurance quotes, explore value-added coverage options, and review their car insurance policies regularly. It’s time wise for you to secure or renew your car insurance as early as possible—especially before premiums increase further.

Here’s why:


1. Premiums Are Rising

With underwriting losses climbing and claims increasing (especially due to costlier EV repairs and inflation), insurers are likely to continue raising motor insurance premiums in Singapore. Getting insured now might mean locking in a lower premium before future hikes.


2. High Repair Costs

If you're uninsured or underinsured and get into an accident, the repair costs—especially for EVs—could be very high. Having comprehensive coverage protects you financially.


3. Fewer Options Later

As insurers adapt to rising risks and costs, they may also tighten coverage options or introduce more exclusions. Early renewal gives you access to wider and more competitive plans.


4. Inflation Will Continue to Affect Claims

As inflation affects the cost of car parts and services, even minor repairs could get expensive. A good insurance plan helps shield you from unexpected out-of-pocket costs.


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