First Time Car Insurance Buyers, Read this First!

First Time Car Insurance Buyers

Congratulations on getting your first car and welcome to a life of convenient mobility. Now that you have spent a fair amount of money on acquiring your car, time to search for the most suitable car insurance to protect yourself and your prized possession.

As a first-time car-insurance buyer, we’ve got some tips for you and What should I look out for in an auto insurance policy? When buying insurance, it is definitely not just the price that you are looking out for. Getting the most appropriate cover as a new driver while cutting out unnecessary extras should be your guiding principle.

Finding The Right Car Coverage

Auto insurance here consists of three main types of cover; you need to decide on either Third Party only, Third Party Fire and Theft or a Comprehensive cover. Spend some time reading through the fine prints as you do not want to learn after an accident that you are not covered. It will be too late and the consequences can be serious if you are not adequately covered.

1.  Third-Party Only

The Third-Party Only (TPO) plan is ideal for motorists who require the basic protection for liability against third-party property damage or physical injuries. This is the cheapest option for car insurance and is the minimum legal requirement under Singapore regulation. Under this type of insurance, you are protected if you injure someone or are involved in a fatal accident involving your car. You are also covered when property belonging to a third-party is damaged by you in a car accident.

2.  Third-Party Fire and Theft

Third-Party Fire and Theft (TPFT) plan covers you for damage caused to your car through fire, on top of the basis TPO coverage. Your insurer will also provide compensation if your car is stolen. Just remember to submit a police report as soon as you can, as you need it as a proof of theft.

3.  Comprehensive

The Comprehensive policy covers all of the above plus car damage in any natural disasters including floods or a fallen tree. Coverage includes the cost of reparations should your car be damaged in a natural disaster, and the insurer will pay you up to the market value of your car if it is stolen. Car parts are insured as well, including stereos, windscreens and windows.

Being a safe driver can save you money!

Since you are starting on your journey of new car ownership, it is important for you to have a clean driving record. Being a safe driver on the road has its benefits. Car insurance is usually renewed on an annual basis; so following your first year of safe driving, remember to ask for a no-claims discount from your insurer. No-claims discounts are usually presented as percentage discounts off your current premiums and increase with the number of years you maintain a clean driving record. This discount can be substantial, adding up to 50% savings on your premiums in your fifth year of safe driving! Nothing says this more than with NTUC car insurance, this provider offers a whopping 69% discount to drivers that have no claims, so think about your driving style and the effect it can have on your wallet.