What You Need to Know About Car Insurance
If you own a car, you would know that car insurance and road tax has to be renewed every year. How much you pay depends on your profile (age, gender, driving experience, occupation, claims history), your vehicle’s profile (make & model) and the type of coverage.
It’s important to understand the different kinds of coverage availability to see what is most cost-efficient for you.
1) Third-party Only
Covers death or bodily injuries to third-parties and/or passengers; and damage to third-party's property.
2) Third-party, Fire & Theft
Extension of the third-party Only policy. Protects the insured's own car against loss or damage (caused directly by fire or theft). Other causes resulting in loss or damage to the insured's own car is not covered.
3) Comprehensive
This type of policy offers the broadest protection for a car owner. Covers the insured's liabilities; bodily injury, death and property damage to third-parties (including passengers). It also covers damage to the insured's own car (own damage).
The common coverage to go for is comprehensive. Cars are expensive in Singapore, better to be safe than sorry.
Keeping a Good Profile
Here are some very important factors to decrease the cost of your next car insurance policy.
1) Maintain a no-claims record
This means there shouldn't be any own damage (OD) claims / any other claims against you. Claims against another driver would not affect your record. This would enable you to enjoy a discount (NCD) off the premium, ranging from 10 - 50 %. (see table below)
2) Maintain a demerit points free driving record*
Eligible for drivers that do not have any demerit points awarded for the past 3 yrs. An additional 5% off the premium (*only for drivers with NCD of 30% or more).
3) No Claim Discount - NCD (or NCB)
NCD is discount (in % off the premium) extended to the car owner for maintaining a claims-free record whilst insured*. NCD is transferable among all motor insurers in Singapore. It is also transferable within parent / child / spouse.
How to Get Cheap Car Insurance?
You can’t change your profile or your car profile, but you can play around with the type of coverage you want. Also, different insurance companies will be able to offer different prices. It’s always good to do some research and comparison before making any purchase. It’s possible to save from few hundred up to thousands.
The Con
Not everyone can get a good rate from the insurance company, especially if you are just a call-in customer. Worse of all, it takes a lot of time to call up every insurance company and talk to more than 20 sales representatives. Every company you talk to will claim to be the best package.
Ready?
Step 1 - Send us your information.
Step 2 - You get informed of the best quotations filtered from a list of 20+ insurance companies.
Step 3 - Get great savings on your car insurance!
