Factors For Car Insurance | Buy Car Insurance Plan in Singapore

Car Insurance | Insurance
by Priyadarshini 11 July 2022

Many automobile insurance policies now include wonderful features that cater to specific needs, such as personal roadside help, young driver coverage and a large list of conveniently placed workshops. In this blog, read about factors for car insurance you should consider in Singapore. 

What to look for when purchasing auto insurance?

Factors For Car Insurance

Type of Car Insurance

The first item to check for is the sort of automobile insurance coverage. Car insurance policies are classified into three types:

  • Third-Party Only: The most basic automobile insurance coverage, covers third-party injuries or death as well as damage to others’ property. This does not cover damage to your personal vehicle.
  • Third-Party Fire and Theft: In addition to Third Party auto insurance, this covers fire damage or theft of your vehicle. Again, this does not cover the cost of any vehicle damages.
  • Comprehensive: Covers everything that Third Party Fire and Theft does, plus repairs or replacement for unintentional damage to your car. Personal accident and medical expenditure coverage can also be included.
  • Third-Party Only is the absolute minimal minimum for your vehicle. If you want more comprehensive coverage, you should go with a comprehensive plan that covers car damage in the event of an accident.

How much extra money are you willing to pay?

The excess is the maximum amount you can expect to pay out of pocket if you file a claim. This excess, however, is only paid in cases when you are at fault. For example, if your policy excess is S$500 and your claim is for S$2,000, you will only be required to pay S$500 while your insurance provider would cover the remaining S$1,500.

The amount you’re willing to pay in policy excess in the case of an accident will influence the automobile insurance policy you choose. In general, bigger excesses result in lower premiums, and vice versa. This is because you bear a bigger ‘cost’ by paying higher excess in the event of an accident and are thus rewarded with reduced premiums. This is one method of reducing your insurance premiums.

Only authorized workshops are permitted, but you may attend any workshop of your choice. Most car insurance policies urge you to have your repairs done at one of the insurer’s many authorized workshops. This ensures the quality and cost of repairs for both you and your insurer.

However, if you have a particular workshop or want the flexibility to have your car repaired at any workshop, you must choose a plan that includes this option. Car insurance policies that enable repairs at any workshop typically have higher premiums.

Factors For Car Insurance

Secondary variables to consider when selecting a car insurance policy include:

Additional driver: Will the car be driven by someone else? If this is the case, you should add a ‘named driver’ or ‘extra driver’ to the insurance who will be insured to drive the automobile as well. The ‘named/extra’ driver will often have the same amount of coverage as the primary driver and will incur additional costs.

Roadside aid: Would having access to roadside assistance at any time of day gives you peace of mind if you were in an accident? If you answered yes, check to see if the auto insurance plan includes 24-hour roadside help. This could be useful for newer drivers who are unsure of what to do in the event of an accident.

What is your No Claims Discount (NCD)? NCD is a discount on your auto insurance premiums based on how many claims you make (or do not make) in the previous year. If your NCD is between 30% and 50%, you should consider adding riders such as an NCD protector to protect your NCD in the event of a claim.

Daily transportation allowance: This is money you’ll get from your insurer for each day your vehicle is being repaired. This allowance is subject to the terms and conditions of the insurer and may be capped.

Abroad coverage: If you need overseas coverage, such as if you frequently travel in and out of Malaysia, you’ll need a car insurance policy that provides it. Take notice that most insurers give coverage is fairly conventional geographic areas, primarily West Malaysia and Southern Thailand. Finally, due to your lack of driving experience, expect your premiums and excess to be higher if you are a young driver.

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