Skip to content

EV or Not? Singapore Car Owners Weigh in on Costs, Safety, & Insurance Needs

Picture of Edward Tho
Follow The Financial Coconut

 

Singapore is moving closer to its goal of phasing out internal combustion engine (ICE) vehicles by 2040. However, the transition to EVs presents challenges.

A recent survey titled "Singapore Electric Dream" was conducted by YouGov for Income Insurance in March 2025. The survey highlights the concerns of Singaporean car owners. It also explores their motivations and expectations regarding EV adoption.

Here’s an in-depth look at what the data reveals and how it impacts the decision-making process.

Source: "Singapore Electric Dream" by Income Insurance, conducted by YouGov online in March 2025.

Younger drivers are enthusiastic about technology but remain cautious about practical issues:

  • Risk of fires at charging stations: 35%
  • Long waiting times for charging: 34%
  • Higher repair costs vs. fuel cars: 33%
  • Challenges in locating a charging station: 33%
  • Range anxiety (fear of being stranded): 32%

For Millennials and Gen Zs, convenience and safety are significant barriers. The fear of being unable to find a charging station or experiencing long wait times highlights the need for a more robust EV infrastructure.

Source: "Singapore Electric Dream" by Income Insurance, conducted by YouGov online in March 2025.

Older drivers are more concerned about financial and logistical aspects:

  • Inconvenience due to charging wait times: 38%
  • High battery replacement costs: 36%
  • Speed of charging: 36%
  • Risk of fires from battery issues/re-ignition: 35%
  • Limited resale market value for EVs: 31%

These concerns reflect a focus on long-term value and practicality, with older car owners prioritising cost efficiency and reliability.

Insurance Concerns and Desired Features

Insurance plays a crucial role in alleviating fears about EV ownership. According to the survey:

  • 1 in 5 (20%) potential EV buyers say that EV-specific insurance would influence their decision.
  • Nearly 1 in 3 (31%) existing EV owners express concerns about the lack of tailored insurance options.

Top Desired Features in EV Insurance

  • Coverage for battery replacement after accident: 43%
  • 24/7 emergency mobile charging service: 36%

These findings highlight the importance of addressing unique EV risks, such as battery damage and roadside emergencies, through specialised insurance products.

LTA | Electric Vehicles

Motivators for Switching to EVs

Despite the concerns, many car owners are motivated to switch to EVs for environmental, financial, and technological reasons.

1. Environmental and Innovation Factors

  • Helping the environment: A common motivator across all demographics.
  • Keeping up with tech trends: Particularly appealing to younger drivers, with 49% of female EV owners citing this as a key reason (vs. 31% of men).
  • Lowering car ownership costs: Financial incentives are a strong draw for non-EV owners:
    • Vehicular Emission Scheme rebates: 53%
    • Government subsidies: 49%
    • Reduced road tax: 48%

2. Generational Differences

  • Women drivers: Sustainability is a stronger motivator for women, with 40% citing environmental benefits (vs. 31% of men).
  • Gen X drivers: Focused on practicality, with 49% motivated by environmental goals, 45% by improved driving experience, and 37% by tech trends.

Attitudes Toward the Singapore Green Plan

The government’s vision of achieving 100% cleaner energy vehicles by 2040 has garnered widespread support:

  • Awareness of the 2040 target: Close to 70% of respondents are aware of the initiative.
  • Optimism: 71% feel positive about the EV shift, with nearly 80% of women expressing optimism (vs. 67% of men).
  • Younger drivers: Over 80% of Gen Z and Millennials support the vision, with close to 70% open to fully transitioning to EVs by 2040.

This optimism reflects confidence in Singapore’s ability to meet its green goals, provided that infrastructure and support systems keep pace with demand.

A Look At The Key Blindspots In S'pore's Roadmap To Full Electrification

Expert Insights

Cecilia Siah, VP & Head of Motor Business at Income Insurance, emphasised the company’s commitment to supporting EV adoption:

“We understand that switching to an EV is a big decision for many drivers. Our team has spoken to car owners who are keen to make the switch but are held back by worries around battery replacement costs or roadside emergencies, hence we developed our EV insurance with these concerns in mind. We not only aim to protect these car owners but also to support them with a smoother, more confident transition to greener mobility.”

Wrapping Up

The shift to EVs in Singapore is inevitable, driven by environmental goals, technological advancements, and government incentives.

However, concerns about costs, safety, and infrastructure remain significant hurdles for many car owners. Addressing these issues through innovative solutions, such as tailored insurance products can help ease the transition and build confidence among potential EV adopters.

As Singapore moves closer to its 2040 vision, collaboration between the government, insurers, and EV manufacturers will be critical in creating a seamless and sustainable mobility ecosystem.

For car owners, the message is clear: while challenges exist, the tools and support needed to embrace EVs are already here.

Let us know what you think about this topic, and what do you want to hear next.

You can now be our community contributor and make a pitch to have your favourite personality be on our show.
Join our community group and drop us your insights on this topic.

 

Stay ahead in your financial journey! Sign up for our newsletter to receive insights, tips, and strategies from The Financial Coconut
,

Let us know what you think of this post