In Singapore, if you own a vehicle, car insurance is mandatory to protect ourselves and other parties on the road. Everyone who owns a vehicle has probably gone through the trouble to find an affordable Motor Car insurance that’s best suits your needs and cost. It’s an absolute hassle trying to compare prices and trying to get a quote for as cheap as possible.
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How much is my motor car insurance price
Here are the factors that affect the price of your car insurance:
1) Types of car insurance:
For those who are new to car insurance, there are three types depending on levels of coverage. This includes third party only insurance; third party, fire and theft insurance; and comprehensive car insurance. We will share with you what each type covers and not cover
- Comprehensive Car Insurance: As the name suggests, this type provides the most extensive coverage. At the same time, it is the most expensive option. The policies will also cover damage that you cause to another person’s property or body. on top of that, This option cover damage to your Vehicle from accidents regardless of owner fault which includes highly unlikely incident like fire, theft and vandalism. Depending on the company and the policy, comprehensive auto insurance may also cover civil riots and acts of God like a fallen tree or floods.
- Third-party, Fire and Theft insurance: This policy is like the middle ground of comprehensive and third party only. This policy provides coverage for the damages of the other party’s vehicle, but not yours, if you were to knock into another person’s vehicle. However, this policy would provide coverage for your car if it were to catch fire, be vandalized, or get stolen.
- Third-party Insurance: This is the minimum requirement for you to drive a car in Singapore and it is the option with the lowest cost which provides the least coverage. It will cover only damages that you cause to other people’s property, such as their car, fences or streetlights. However, if your car were to be damaged in an accident, you would have to bear the full cost for the damages incurred on your car while the insurance company would pay for the damages incurred to the other party.
Although female drivers have often been subjected to jokes and discrimination of being a bad driver, their premiums are usually lower than men as some insurance companies perceive women to be safer drivers. Even industry data shows that women typically pay between $10 to $60 less per year than their male counterparts. So, be sure to think again when y’all criticize your female friends for being bad drivers!
Young drivers under 30 have been shown to be more distracted and reckless when driving which means at higher risk of an accident. For people above the age of 65, they are perceived to have slower reflexes which pose a danger when driving. Thus, people under 30 and above 65 can expect to pay higher premiums than people aged 30-65 due to their higher risk as perceived by the insurance companies.
4) Driving experience:
Besides your age, insurance companies generally look at the number of years you’ve been driving on the road to gauge how well you can drive and decide on your risk of an accident. They generally equate more experience with better drivers so new drivers would be charged at a higher premium.
5) Type of vehicle:
Generally, if you’re driving continental cars, luxury cars and SUVs, do expect to pay more as the cost of repair would be higher for those cars. In addition, for cars with higher engine capacities, there would also be a higher premium.
6) Age of vehicle:
It’s natural to assume older cars require a higher premium as it would be harder to repair the older parts. However, premiums are pretty stable until you reach the 8th year in a 10 year gauge.
7) No claim discounts (NCD):
This is a way for insurance companies to reward you for being a safe and careful driver. It is a count of the number of years in which you haven’t made a claim on your car insurance policy and reduces the premium you have to pay the following year. Although it is non-essential, it would help you to save an amount of money. Insurers will usually give a 10% discount for every year that you don’t make any claims, up to a limit of 50% for five years or longer.
Therefore, although there are some factors which we are not able to change, there are other factors we can workaround to get a cheaper car insurance premium.
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How Much Excess for my Car insurance
To put it simply, an “excess” is a sum of money we would have to fork out first before the insurance company would cover the rest of the cost.
As a benchmark, most insurance would generate quotes based on a $500-$600 excess which is what most drivers are willing to pay on their own. However, this quote is not fixed and you may choose to increase or lower the excess amount.
A higher excess would mean a lower premium. Vice versa, if you pay a lower excess, there would be a higher premium to be paid.
To understand excess, Let’s say a driver got into an accident and the car has to go for repairs which cost $5,000. You have an excess of $500, so the insurance company would fork out the remaining $4,500 for your repairs.
When looking at car insurance quotes, be sure to consider at both the excess and premium as you would want to balance the needs. on one hand you do not want to let an accident left you in a bad financial situation but on the other hand you do not wish to overpay the premium than what is necessary
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