1. Vehicle age — the 10-year line
Once a van or lorry crosses roughly 10 years old, most insurers stop wanting to sell you comprehensive cover. What you'll be offered is usually Third Party Only (TPO) or Third Party, Fire & Theft (TPFT) — and honestly, that's usually fine. Many working vehicles in Singapore run well past 10 years on renewed COE, and paying comprehensive-level premiums to insure an old vehicle's own damage rarely adds up. Don't fight the 10-year line; price around it.
2. Attachments — that box on your lorry isn't free
A hood, a box body, a tailgate, a freezer unit, a small crane — every attachment adds value and risk to the vehicle, and insurers price for it. Two rules here:
- Expect the premium to be higher than the same bare vehicle.
- Declare every attachment. An undeclared box body isn't a money-saver — it's a reason for an insurer to reject the claim exactly when you need it.
3. Nature of business — insurers rate the trade, not just the truck
The same 10-foot lorry pays different premiums depending on whether it hauls renovation debris, delivers cakes, or carries scaffolding. Insurers have loss data by trade, and they price it. There's little you can do about what your business is — but it's one more reason quotes must be shopped: different insurers rate the same trade differently, and we know who likes which trades this year.
4. Hire or reward — carrying other people's goods costs more
If your vehicle carries goods for other people for payment — couriers, third-party logistics, deliveries for hire — that's "hire or reward" use, and it's priced above carrying your own goods. Expect both a higher premium and a higher excess. Two things matter:
- Declare the use honestly. A policy priced for own-goods use can leave you uncovered if the accident happens while doing paid deliveries.
- Shop it harder. The hire-or-reward loading varies meaningfully between insurers — this is where a volume agency earns its keep.
5. Who drives — the YEID clause
Most commercial policies cover any authorised driver, but drivers who are under 26, aged 70 and above, or holding a licence under 2 years carry an additional excess if they're driving during an accident — with some insurers, $2,500 or more on top of the standard excess. If your crew includes young or new drivers, tell us: the age bands and amounts differ by insurer, and picking the right one softens the blow.
6. Your NCD — capped at 20%, but fully portable
Commercial vehicle No Claims Discount maxes out at 20% (private cars get up to 50%). It transfers fully when you switch insurers, and we verify it ourselves — no paperwork from you. The practical takeaway: never stay with an expensive insurer out of fear of "losing your NCD". You won't.
7. Claims record — clean years are currency
Beyond the NCD itself, insurers look at your recent claims when deciding how keen they are to win your business. A clean three years makes you the customer every insurer wants — which is exactly when we can negotiate hardest on your behalf.
8. Workshop plan — why we recommend approved workshops
Policies come in two flavours: approved workshops (repairs at the insurer's panel) and any workshop (your choice). For nearly every working van and lorry, approved is the better plan:
- Cheaper premium — insurers control repair costs at their panel, and pass some of that saving to you.
- One-stop after an accident — approved workshops double as accident reporting centres: report and repair in a single visit.
- No quality gamble — panel workshops handle commercial vehicles all day and are accountable to the insurer for the work.
The any-workshop plan earns its higher premium only for genuinely specialised vehicles that a panel workshop can't handle.
The boss's checklist
- Over ~10 years old? Expect TPO/TPFT offers — usually the right economics anyway.
- Declare every attachment and the real use of the vehicle. Cheap-by-omission is expensive at claim time.
- Hire-or-reward work? Budget for higher premium and excess — and shop more insurers, not fewer.
- Know who drives: young/new drivers change which insurer is cheapest for you.
- Your NCD travels with you. Never let it hold you hostage.
- Take the approved-workshop plan unless you have a specific reason not to.
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General information, not financial advice — exact terms vary by insurer and policy. Speak to us for advice on your specific situation.
