Do not ignore insurance costs when renewing COE

The costs and conditions of insuring your COE car could surprise you if you are not careful - learn more from this little piece of advice.

Thinking of renewing the COE of your car as it approaches 10 years of age? Many drivers mainly look at the COE PQP (prevailing quota premium) and the car financing options, but forget about the insurance.

In 2025, car insurance in Singapore is getting more expensive. Whether your car is old or new, the insurance costs should be part of your decision-making process. 

If you renew your car's COE

• Older car = higher insurance premiums, because motor insurers charge more to cover older vehicles.

• Less coverage, with cars older than 10 years only qualifying for third-party insurance. 

• Lower market value for your car, with consequently lower potential insurance payout in the event of a major insurance claim, such as total loss.

If you buy a new car

• New ride = better rides, but not necessarily cheaper, with luxury cars and electric vehicles generally costing more to insure.

• The COE premium affects the insurance premium, which would reflect the cost of putting the new car on the road, complete with COE and vehicle taxes.

What should you do?

• Renew COE if your car is still running well and you want to save on the depreciation, downpayment and car loan interest.

• Buy new if you want full motor insurance, warranty peace-of-mind, easier/cheaper servicing and fewer headaches caused by mechanical breakdowns.

Use Motorist before you decide

Not sure what your car is worth? Use the Motorist app or visit Motorist.sg to:

• Get a free car valuation.

• Compare insurance quotes.

• Apply for loans or COE renewal.

• Sell your car easily.

Motorist helps you make smarter car decisions in Singapore.

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