An EV lease in Singapore is becoming a preferred choice for businesses looking to stay agile and sustainable. Leasing commercial electric vehicles (EVs) in Singapore is on the rise. With lower upfront costs, strong sustainability incentives, and EV-focused government policies, more businesses are switching to EV leasing as a strategic move. But one vital question still requires clarity: When you lease a commercial EV in Singapore, who pays for the insurance—and what does it really mean for your business?
This guide explores how EV insurance works within a lease, who holds responsibility for what, and how EVFY simplifies the process by offering protection designed for commercial EVs. Understanding these terms is critical for avoiding hidden liabilities and optimizing your lease experience.
Key Takeaways
Insurance for commercial EVs is held by the leasing provider (EVFY), but lessees remain responsible for policy compliance and liabilities in certain conditions.
Driving violations, unauthorized usage, or failure to report accidents promptly can void insurance coverage and lead to full financial responsibility for damages.
Insurance payouts go to EVFY, not the lessee, and do not release the lessee from contractual liability.
Accident-related costs may include excess charges, premium increases, and damage fees—especially when lessees are at fault.
EVFY offers all-in-one leasing packages that simplify coverage, streamline reporting, and reduce the administrative burden on businesses.
How Insurance Is Structured in a Commercial EV Lease
When you lease an EV through EVFY, your vehicle is covered under a standard commercial motor vehicle insurance policy. This insurance is held by EVFY, ensuring regulatory compliance and continuous coverage across all leased units.
What this means for lessees:
The insurance is for the benefit of EVFY. All claims and reimbursements are handled through EVFY and not paid directly to the lessee.
Your monthly lease payment includes insurance, which reduces the administrative workload and keeps billing simple.
The lessee must comply with the insurance terms outlined in the lease. Violating these terms can lead to voided coverage and personal liability.
EVFY’s insurance-inclusive approach removes the need for businesses to procure their own third-party policy—allowing for better rates and less paperwork.
What’s Included in EVFY’s Insurance Coverage?
Leases through EVFY provide broad, vehicle-specific protection. Coverage typically includes:
Third-party liability (compulsory under Singapore law)
Collision and comprehensive damage
Fire and theft
Personal accident benefits
Battery and electric component protection (where applicable)
Damage due to natural disasters, subject to terms
Roadside assistance and towing services
It’s designed to offer business continuity and help fleet operators minimize operational risk. But like any insurance policy, it comes with conditions and exclusions.
What the Insurance Doesn’t Cover
Insurance is only effective when lessees meet their obligations. Certain actions or omissions can void the policy altogether. If this happens, the lessee becomes fully liable for damages, repair costs, and any third-party claims.
Here are exclusions that will result in loss of coverage:
Driving under the influence of alcohol, medication, or drugs
Using the vehicle for unauthorized purposes (such as racing, towing, or illegal activity)
Allowing drivers who do not meet age, license, or experience qualifications to operate the vehicle
Making unauthorized modifications or branding changes to the vehicle
Failure to report accidents within 24 hours
Delayed or missing police reports in serious incidents (e.g., injury, hit-and-run, government property damage)
The insurance will also be invalidated if the lessee conceals information or fails to cooperate in the claims process.
What Happens if There’s an Accident?
Even with insurance included, lessees remain financially responsible for certain costs, especially in fault-based or preventable incidents. Here's how liability works:
Insurance Excess: The lessee must pay this upfront portion of claim costs. It varies based on the lease and is defined in the Schedule of Fees.
Damage/Loss Fee: If the accident is partly or fully the lessee’s fault, an additional charge applies on top of the excess.
Premium Increases: Any insurance claims during the lease period may lead to higher premiums in the future.
Policy Adjustments: EVFY reserves the right to increase the excess amount at its discretion following a claim.
In some cases, the costs associated with an accident can be significantly higher than the excess. That’s why incident prevention and compliance are so important.
Reporting Obligations After an Accident
Proper reporting is crucial. Delays or omissions can invalidate insurance coverage and result in full liability for the lessee. Here are the steps to follow:
Notify EVFY within 24 hours of any incident.
Submit an accident report at EVFY’s authorized reporting center.
Secure witness statements, vehicle details, and photos from the scene.
Do not admit liability at the scene of the accident.
Make a police report immediately if the accident involves:
Injury, death, or hospitalization
A foreign vehicle
Government property
Cyclists or pedestrians
Hit-and-run situations
Theft or suspected criminal acts
Lessees are expected to cooperate fully with investigations and insurers by supplying all required documentation.
Understanding the Lessee’s Responsibility in an EV Lease in Singapore
While EVFY simplifies insurance by bundling it into every EV lease in Singapore, lessees still hold several critical responsibilities to ensure continued protection and compliance throughout the lease period.
These responsibilities include:
Ensuring all drivers are qualified and meet the required standards:
At least 23 years old
Valid license with a minimum of 2 years’ driving experience
No rejected or canceled insurance history
No serious driving offenses or bankrupt status
Using the vehicle only within Singapore and in accordance with manufacturer and legal guidelines
Avoiding unauthorized modifications or alterations to the vehicle
Monitoring and reporting any driver changes or disqualifications promptly
Reporting mechanical issues and breakdowns without delay
Failure to meet these terms under an EV lease in Singapore can result in restoration fees, repair costs, or penalties—even if insurance coverage is technically in place. These safeguards help maintain accountability, reduce risk, and keep operations running smoothly.
Why EVFY’s All-Inclusive Leasing Model Works
EVFY’s EV leasing model is designed around simplicity, accountability, and support. Our insurance-integrated lease structure removes common roadblocks associated with fleet management.
By choosing EVFY, you gain:
A single monthly bill that includes insurance, maintenance, and support
Built-in claims assistance and accident guidance
Access to EV-specialized insurance policies with extended battery and component coverage
Scalable options for adding new vehicles to your fleet with insurance automatically included
This creates a seamless experience for business operators who need reliability without micromanagement.
Final Thoughts: Why EVFY Is the Smarter Choice
Leasing a commercial EV in Singapore is a strategic move—but only when you partner with a provider that takes risk management seriously. That’s why EVFY goes beyond basic leasing by embedding insurance into every contract and guiding you through responsible vehicle use.
Our comprehensive coverage, backed by clear communication and proactive support, ensures that your operations stay compliant, protected, and uninterrupted.
Whether you're managing a single vehicle or an entire fleet, EVFY offers a complete EV lease solution built for Singapore's roads and regulations.
Choose EVFY for a Smarter, Safer EV Lease
Ready to simplify your EV leasing experience?
Visit our plans: evfy.sg/leasing
Contact our team: evfy.sg/contact-us
EVFY makes EV leasing easier, safer, and more efficient—for every business and every journey. Let us handle the coverage so you can focus on growing your business.