Drive In Singapore

road tax

Singapore ERP (Electronic Road Pricing): 6 Facts You Need to Know

Drive a car in Singapore, Own a car in Singapore

Singapore ERP (Electronic Road Pricing)

Singapore is renowned for its innovative and efficient transportation system, and electronic road pricing (ERP) is one of the key components that make it work.

ERP is a system that charges drivers for using congested roads during peak hours, with the aim of reducing traffic congestion and improving overall road efficiency.

As a driver in Singapore, understanding the ERP system is integral to navigating the city's roadways effectively, avoiding fines, and saving time.

This driving in Singapore guide aims to provide a concise guide to the top 6 facts you need to know about electronic road pricing in Singapore. We will explore the role of ERP, how it works, and the various ways you can pay for it. Additionally, we will discuss frequently asked questions about the system, such as the fines for non-compliance.

1. ERP is an electronic toll system, not a tax.

Electronic Road Pricing (ERP) is a sophisticated electronic toll system introduced in Singapore in 1998 with the aim of reducing road congestion during peak hours. This system does not replace the traditional road tax, but instead charges road users a fee (currently from $0.5 to $6.0 per gantry) based on the electronic gantries they drive through and the time of day. So, the ERP system is designed to encourage drivers to avoid congested areas during peak hours, thus reducing traffic and improving travel times for arterial roads and expressways.

The ERP charges are automatically deducted from an in-vehicle unit (IU) that is installed in the vehicle, making it a seamless process for road users. ERP charges are reviewed and adjusted periodically based on the traffic conditions around individual gantries.

ERP has been successful in managing the traffic flow in the city-state and has since been expanded to cover more arterial roads and expressways, making it part … Read the rest

Car Insurance in Singapore Explained

Drive a car in Singapore, Own a car in Singapore

Car Insurance in Singapore

If you own a car in Singapore, you must have car insurance. It's not just a legal requirement; it's also a smart way to protect yourself and your car from unexpected accidents and damages.

But with so many different car insurance policies available, choosing the right one for your needs can be confusing. In this article, we'll explain everything you need to know about car insurance in Singapore.

What is Car Insurance in Singapore?

Car insurance is a type of insurance that protects you financially in the event of an accident. If you are involved in an accident, your car insurance policy will pay for the damages to your car, as well as the damages to other people's property and injuries to other people.

Car insurance can also help you pay for your medical expenses if you are injured in an accident.

Car insurance is important because it protects you from financial ruin in the event of an accident.

Even if you are not at fault in an accident, you could still be responsible for paying for the damages to other people's property and injuries to other people. If you do not have car insurance, you could be forced to pay for these costs out of your own pocket, which could be very expensive.

Types of Car Insurance Policies in Singapore

There are three main types of car insurance policies in Singapore:

  1. Third-party only (TPO) insurance,
  2. Third-party, fire and theft (TPFT) insurance, and
  3. Comprehensive insurance.

Third-Party Only (TPO) Insurance

TPO insurance is the most basic type of car insurance in Singapore.

It only covers damage or injury caused to other people or property by your car. This means that if you get into an accident and you are at fault, your insurance company will only pay for the damage or … Read the rest

Why are cars in Singapore so expensive?

Own a car in Singapore

The breakdown of the car cost in Singapore

According to the Worldwide Cost of Living Report 2018 by the Economist Intelligence Unit, Singapore has held the title of the most expensive city for the fifth straight year since 2014. The top factor contributing to Singapore's ranking is the cost of car ownership.

Singapore is the most expensive place in the world to buy a car (and maintain a car), thanks to its successful car control policy. When you plan to buy a car, it is important to understand the breakdown of the car price you have to pay. If you are a foreigner and hold a foreign driving license, you need to convert your foreign driving license to Singapore driving license after 12 months.

As a highly populated city-state, Singapore cannot afford a massive traffic jam. So the government invested billions of dollars each year in the public transportation system to make it affordable, reliable (decreasing in recent years), accessible and efficient.

For car ownership, the Singapore government fabricated a complicated, fair, and effective car regulation system. Since 1990, the Certificate of Entitlement (COE),  complemented with tax and duties, has been introduced (and tweaked) to regulate the demand, and Electronic Road Pricing (ERP) to regulate road usage.

Today, when you pay the “purchase price” to the car dealer, less than 25% of the price is the actual car value. In simple words, for the same money you paid, you probably can buy 3-4 identical cars in the US.

So, why a car in Singapore is so expensive?

When you buy a car, you are not paying only for the car. The purchase also includes at least the following 10 items:

  • COE (you can bid one for yourself, but most dealers will mark up the car price);
  • Open Market Value (OMV);
  • Additional Registration Fee (ARF);
  • Excise
… Read the rest

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