We know owning a car in Singapore is not cheap, and buying car insurance is not only protection for your prized possession but also mandatory. However, there are ways to get comprehensive coverage without having to pay for the unnecessary extras.
Car owners in Singapore typically renew their insurance and road tax on an annual basis. The price of policies range widely depending on the model of the car, your profile and the type of coverage you need. Majority of cars in Singapore are covered by comprehensive policies as car prices here are expensive.
Insurers can quote prices that are vastly different due to their different risk assessment policies and favouring a certain driver’s profile.
In general, the following risk factors are considered when setting your premium:
- Make and model of vehicle
- Engine capacity
- Age of vehicle
- Age, gender and occupation of drivers
- Driving experience
- Claims history of drivers
- Type of cover
Your insurer will give each risk factor a weight age based on information from a range of statistics and past claims.
In order to achieve lower motor insurance rates, you should take note of these:
1. Maintain a no-claims record
As with any health insurance, insurance premiums are always lower if you have no prior claims. This is even more important for motor insurance, as it reflects on how safe a driver you are who is not accident-prone. Claims against other drivers will not affect your record. This would enable you to enjoy a no-claims discount, which can be very substantial in the long run.
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. One great thing is that NCD is transferable between all auto insurers in Singapore.
2. Offence-Free Discount
Being a safe driver on the road has its benefits. 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.
1st year upon renewal
Should your NCD be 30% and above for a private car policy, some insurers may reward you with a further 5% discount upon presentation of your Certificate of Merit.
3. Restricted Drivers Discount
If you are age 30 or above with more than two years driving experience, insurers can offer up to 15% off the premium. The only point to note is that any other drivers below 30 and/or less than 2 years of driving experience would not be covered under the policy.
More guides on Finder
Direct Asia Motorcycle Insurance Review
Compare three types of motorcycle insurance policies offered by Direct Asia Singapore and find a deal that works for you.
MSIG MotorMax Car Insurance Review
Protect yourself from financial losses related to auto accidents with MSIG MotorMax car insurance.
Budget Direct motorcycle insurance
Choose between three types of policy and get help in emergencies or breakdowns on the road, 24/7.
Budget Direct Car Insurance
Compare between three main cover options and make the most of promotions that can reduce the cost of your premium.
Comprehensive car insurance
Find out the key points of comprehensive car insurance and apply securely in just a few clicks.
Income Car Insurance Review
Choose between three comprehensive cover options and score policy discounts with Income.
Sompo Car Insurance Review
Get 24/7 emergency help, enjoy loyalty discounts and more with Sompo.