Car Insurance

MSIG Car Insurance Singapore Review 2018

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Clara Lim

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As one of the longer-standing insurance companies in Singapore, MSIG is a popular brand for car (as well as other types) of insurance. What does MSIG car insurance have to offer that can distinguish it from the competition? Let’s see.

MSIG car insurance plans

MSIG sells car insurance under 2 brand names: the standard MotorMax and the new UMax, with a total of 4 plans.

Car insurance plan Key features Recommended for
MotorMax Basic level of coverage

MSIG authorised workshops only

Cars no longer under warranty

Second-hand cars

Parallel imports

MotorMax Plus More extensive coverage than MotorMax

Transport allowance when car is under repair

Replacement car for cars under 1 year old

Higher PA payout

Loan protection up to $100,000

No restriction on workshops

New cars under warranty

Drivers who took out a car loan

UMax Same as MotorMax but with added personal effects coverage Safe drivers
UMax Plus Same as MotorMax but with added personal effects coverage

No loan protection

New cars under warranty but not on loan

Safe drivers

 

MSIG MotorMax is really basic – it covers car repairs (at authorised workshops only), medical expenses, third party damage and roadside assistance. This is for those looking for affordable insurance for an older car and who are not too fussy about coverage. Note that there are several insurers also offering similar basic coverage at competitive premiums – just use MoneySmart’s Car Insurance Wizard to find them.

If you have a new car or are very dependent on your vehicle, consider paying more for MSIG MotorMax Plus as you can get other benefits like loss of use transport allowance and a replacement car if your new car gets completely wrecked. Also, MSIG is one of the few car insurers with car loan protection. In the event of a fatal accident, your debt will not be passed on to your family.

 

UMax is a new scheme from MSIG where you can get the same coverage as MotorMax, but you can lower your excess if you are a good driver – this is tracked through a telematics device in your car and a mobile app. See below for more details on UMax.

 

UMax Plus corresponds to MotorMax Plus and gives you the same benefit – the chance to lower your excess through good driving behaviour. However, there’s no loan protection on this one.

 

MSIG car insurance add-ons

NCD Protector: If your No Claim Discount (NCD) is 50%, you can add on this protector to maintain your NCD in the event that you have to make a claim.

Vehicle Service in West Malaysia (for UMax only): Drive up to Malaysia frequently? Then you might want to splash out (an additional $53.50 to be exact) on this enhanced coverage which protects you against theft, robbery or break-in.

 

How to get cheaper premiums with MSIG?

With MSIG, the main way to save money – apart from the usual NCD – is to go for their UMax scheme.

Type of discount Description Amount
NCD (No Claim Discount) Given in increments of 10% for each year you don’t file a claim 10% to 50%
MSIG UMax scheme Discount might be given upon renewal if you have a good driving score based on mobile app Varies

Similar to NTUC’s Drive Master scheme, MSIG UMax is marketed as a way to help you save money on (a) your excess and (b) your future premiums IF you’re a good driver.

MSIG will install a telematics device in your car and a mobile app. You then get a score of Red (worst), Orange, Yellow or Green (best) based on your driving behaviour in the last 30 days. This determines how much excess waiver you can get. You can get 100% of your MSIG car insurance excess waived if you’re a really safe driver! Here’s how it works:

When Drive score Excess
First 60 days of policy N/A Standard excess
61st day onwards Red Standard excess
Orange Standard excess
Yellow 50% waiver
Green 100% waiver

This is one way to work around that compulsory $3,000 excess that MSIG (like every other insurer) slaps on you if a young and inexperienced driver gets behind the wheel. So if your newly-licensed kid takes your car for a spin and somehow ends up inside a longkang, you can actually get that enormous excess waived – provided YOU have been driving safely the past 30 days! See the MSIG UMax page for more details.

It WON’T give you a discount on your first year’s annual premium, but if you have a good drive score (and, obviously, made no claims) you might get a discount on renewal.

 

Why (or why not) choose MSIG car insurance?

MSIG is definitely a premium insurer – it’s not cheap. You MUST be willing to pay more for the brand name and level of cover.

If you have a brand new car, consider upgrading to MSIG’s MotorMax Plus or UMax Plus as they are higher coverage (though pricier). But if you’re looking to insure an older car and are watching your budget, you can shop around for similar plans at cheaper rates.

One unique feature of MSIG is that emergency evacuation back to Singapore is bundled into their plans at all levels, plus there’s an option to extend coverage in Malaysia. If you often drive to Malaysia, especially for long-distance trips – frequently enough to make you wonder if your current insurance is adequate – you might want to consider switching to MSIG.

Of course, with its UMax scheme, the higher premiums MIGHT be worth it for the chance to get your excess waived 100%. If you’re already a safe driver, it doesn’t require any extra effort on your part. Do compare it with NTUC’s Drive Master before you commit, though.

 

Would you take on a scheme like UMax for the chance to reduce your excess? Tell us why or why not in the comments.

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Clara Lim

I used to be MoneyDumb. I hung out at H&M every day and thought that a $50 lunch set was a good deal. These days, I spend my time researching the crap out of life and trying to maximise utility on micro-decisions. I'm not sure if that's an improvement.