Drive In Singapore

Everything about ERP 2.0 On-Board Unit (OBU)

Drive a car in Singapore, Own a car in Singapore

Everything about ERP 2.0 On-Board Unit (OBU)

Singapore is currently undergoing a substantial technological transformation in its road pricing framework, which involves the replacement of the traditional In-vehicle Unit (IU) with the advanced (although controversial and arguable) On-Board Unit (OBU). This transition is a core component of the move towards the next-generation Electronic Road Pricing (ERP) system, known as ERP 2.0, which is based on the Global Navigation Satellite System (GNSS).

This Drive in Singapore guide first explains the relationship between ERP 2.0 and the On-board Unit (OBU), then details the components, features, and installation options of the OBU, and finally answers questions you may have about ERP 2.0 and On-Board Unit (OBU).

About ERP 2.0 and On-Board Unit (OBU)

The existing gantry-based Electronic Road Pricing (ERP) system has functioned effectively for over 25 years, having been implemented in 1998. It will soon (but the date has not been announced) be superseded by the advanced Global Navigation Satellite System (GNSS)-based ERP 2.0 system, which aims to enhance the efficiency and precision of road pricing mechanisms.

In conjunction with this transition to the ERP 2.0 system, it is imperative that all vehicles registered in Singapore replace their current In-Vehicle Units (IUs) with the newly developed On-Board Units (OBUs). Upon installation, this transition will occur seamlessly; users will not experience any changes in the manner in which they are charged for ERP or parking fees.

In a nutshell, ERP 2.0 needs the car's real-time position. The OBU is responsible for gathering and transmitting this information.

There will be no requirement to modify any existing arrangements linked to the IU, such as season parking permits. This ensures that while adopting the new technology, you can maintain the current arrangements without disruption, thereby facilitating a straightforward and efficient upgrade process.

Components of the On-Board Unit (OBU)

The new OBU is … Read the rest

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.

Update: Singapore will transition to ERP 2.0 within the next few years, likely before 2028. All Singapore cars will replace the IU with OBU for ERP 2.0 by 2026.

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 … 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

Top 5 rules of driving in Singapore safely and legally during COVID-19 Circuit Breaker period

when to drive, when to wear a mask, where to park and to go.

Drive a car in Singapore, Own a car in Singapore

Top 5 rules of driving in Singapore safely and legally during COVID-19 Circuit Breaker period

During the COVID-19 Circuit Breaker period (now, till June 1, 2020), you need to follow some new rules and regulations (in addition to the existing rules, e.g., speed limit) to drive in Singapore.

Some of these rules may be vague because they were tabled without extensive debating or deliberating and may be revised when the pandemic situation changes.

This post summarizes the top 5 rules of driving in Singapore safely and legally during COVID-19 Circuit Breaker period for private car drivers: when to drive, when to wear a mask, when it is unnecessary to wear a mask, where to park if you drive to exercise, and where to go for exercises.

Taxi drivers, private-hire car drivers, and delivery car drivers have to follow some specific rules and therefore are NOT covered in this post.

Please also note, you are not allowed to drive north to Malaysia during this period. Malaysia has closed the two checkpoints (Sultan Iskandar Complex and Sultan Abu Bakar Complex) for Singapore private drivers since March 18.  Movement Control Order has been extended to May 12, 2020.

Rule #1: Stay at home unless you really need to go out

The purpose of the COVID-19 Circuit Breaker is to minimize or slow down the spreading of the virus in the communities in Singapore.

To keep you safe, you should try to stay at home. Once you step out of the door, you may expose yourself to the virus.

Of course, if you have to go out, for example, to buy groceries, to see a doctor, to fetch your family member who has to work, then you are allowed to go out and drive.

Based on the latest recommendations and regulations, you have to wear a mask once you leave your home, or leave your car.  … Read the rest

Understand COE Price by 10 Simple Questions

Drive a car in Singapore, Own a car in Singapore

COE price history

If you plan to buy a car (even a pre-owned car) in Singapore, you cannot avoid the COE (Certificate of Entitlement). It is part of the car price you have to pay. But many people find it hard to understand the COE price, as shown above.

So, instead of a lengthy explanation which usually causes more confusion, I think these 10 questions can help you understand COE price fluctuations easily.

Is COE an investment or a disposable product?

COE (Certificate of Entitlement)  is definitely NOT an investment, although the price fluctuates as stocks do.

The value of your COE depreciates from the day you register the car.  Each day, you lose about 0.027% of the COE price you paid. Every COE shares the same depreciation rate, but not the absolute value, obviously. So, some car owners lose more money each day than others.

For example, if you get the COE at the price of $30000, you will lose $8.1 every day. If you got it at $60000, congratulations, you lose about $16.2 per day.

After 10 years, the value of all COEs, regardless of your cost of getting the COE, will be $0.

So, COE is not an investment.

In fact, COE is a disposable product:

  • It can only be used for up to 10 years.
  • It can only be used once.

Can I buy a second-hand COE?

One COE can and MUST be tied to one car only.  In other words, once used, the COE becomes an essential part of the vehicle.

So, you cannot sell a COE without selling the car. Similarly, you cannot buy a second-hand COE without purchasing the car.

For this reason, there is a market for second-hand cars in Singapore. But there is no market for second-hand COEs.

An imported second-hand car needs … Read the rest

How to convert a foreign driving license to a Singapore driving license?

Get to know the requirements of conversion of foreign driving license to Singapore one

Drive a car in Singapore

How to convert a foreign driving license to a Singapore driving license?If you are holding a foreign driving license, you may be required to convert the driving license to a Singapore license to drive legally in Singapore.

Of course, there are some exceptions.

This driving in Singapore guide explains who can (and who cannot) use a foreign driving license to drive in Singapore and the requirements and procedures for converting a foreign driving license to a Singapore driving license.

Who can use a foreign driving license to drive in Singapore?

Although cars are exceptionally expensive in Singapore, many people are willing to pay the price for convenience.

Generally speaking, you need a Singapore driving license to drive in Singapore.  All Singaporeans and Singapore permanent residents MUST have a valid Singapore driving license to drive in Singapore.

But as an internationalized city-state, Singapore does allow a certain group of foreign drivers to use their valid foreign driving licenses to drive in Singapore.  For example,

  • Foreign visitors, social visitor pass (SVP) holders, and short-term pass holders can use a valid foreign driving license to drive in Singapore.
  • Holders of long-term passes including Student Pass (STP), Employment Pass (EP), long-term visit pass (LTVP) and Dependent's Aass (DP) can use their foreign driving licenses to drive in Singapore for up to 12 months.  The 12-month period is calculated from the date of your last entry into Singapore (before getting the pass), NOT from the date of issuance of the Pass.
  • Holders of Work Permit (WP) and S-Pass who are employed as a driver (or driving is part of the job) can use their foreign driving licenses to drive in Singapore for up to 6 months.  This 6-month period is calculated from the date of issuance of the pass.

Of course, in all … Read the rest

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