Cheap Car Insurance in Singapore
With sky-high car prices here, not only is getting an auto insurance mandatory, it is a wise money-saving move as well. Prices of policies range widely depending on the model of car, your profile and the type of coverage you need. Insurers can quote prices that range widely due to their different risk assessment policies.
In general, the following risk factors are considered when setting your premium:
- Model of vehicle
- Engine capacity
- Age of vehicle
- Age, gender and occupation of drivers
- Driving experience
- Claims history of drivers
Your insurer will give each risk factor a weighting based on a range of statistics and past claims information.
In order to achieve lower auto insurance premium, take note of these tips:
In simple terms, the excess on a car insurance policy is a fixed contribution that you, as the policyholder, will have to contribute in the event of a claim. So if you have an excess of $500 and you’re making a $1,000 claim, the insurance provider will only pay out $500 as the first $500 will come out of your pocket. If the claim is deemed not to be your fault, your car insurer can waive the excess, giving you a full claim payment depending on the policy you take up.
So a voluntary excess is something that the customer themselves choose to pay in the event of a claim. The upside for you is a lower premium should you opt for a higher excess. So if you consider yourself a very safe driver, increasing the voluntary excess can earn you some savings on your premium.
Pay for only what you need
Insurers like to offer a series of optional covers – such as extra cover for other named drivers of your car, or extra premiums on overseas coverage. Work out which extra benefits you REALLY need and cut out the ones that you don’t to lower the price of your premium.
Maintain a no-claims record
As with health insurance, insurance premiums are always lower if you have no prior claims. This is even more important for motor insurance, as it reflects upon you as a safe driver who is not accident-prone. This would enable you to enjoy a no-claims discount(NCD). The great thing about NCD is that it increases with the number of years you maintain a clean driving record and is transferable between all auto insurers in Singapore.
If you have not violated any traffic rules for three consecutive years, you are entitled to a Certificate of Merit from the Singapore Traffic Police which can earn you a further 5% discount if your NCD is above 30%.
NTUC Car Insurance
Following these 5 steps can save you considerable cash the next time you get card insurance in Singapore. NTUC car insurance is a perfect example of a policy provider that offers a real discount to people that shop around. With a loyalty discount of 5% and up to 50% saving on your existing NCD and a 25% discount for Drive Master.