From The Straits Times    |

 

Owning a car in Singapore is not the cheapest way to get around. That’s why car ownership here is considered a luxury, rather than a necessity like in other countries. 

With car prices staying sky-high, getting car insurance is not only a good way to protect your prized possession, it’s also required by law. Most car owners in Singapore renew their insurance and road tax on an annual basis, but many simply rollover their contracts without looking for better deals. Insurers can quote a wide range of premiums depending on how they assess your risk profile. 

Since cars are expensive here, most drivers choose to take up a more comprehensive policy for more coverage against the potential high cost of an accident. 

In general, an insurance company will look at the following risk factors when setting your premium:

  • Make and model of vehicle
  • Engine capacity
  • Age of vehicle
  • Driver’s profile
  • Driving experience
  • Driver’s history of claims
  • Type of coverage

You will also usually get a discount every year that you go without making claims. This discount normally goes up for the first 5 years that you drive accident free. In a typical policy it will look something like this:

  • 1st year upon renewal – 10%
  • 2nd year – 20%
  • 3rd year – 30%
  • 4th year – 40%
  • 5th year and onwards – 50% (Maximum)

Your insurer will give each risk factor a weighting based on a range of statistics and past claims information. 

Similar to a health insurance, if your current records are clean, you gain access to lower premiums. It is thus important to maintain a good driving history with few traffic violations or accident records. 

Here are three tips to help you increase your chances of paying low car insurance premiums:

Maintain A No-Claims Record

Car insurance premiums are always lower if you have no prior claims. Having a no-claims record reflects upon you as a safe driver who is not accident-prone. 

Remember that claims against other drivers will not affect your record. This would enable you to enjoy a no-claims discount, which can be a substantial amount in the long run. 

No-Claims Discounts (NCD) are presented as percentage discounts off your current premiums and increase with the number of years you maintain a clean driving record. 

NCD is transferable between all auto insurers in Singapore, so you do not need to worry about ‘re-starting’ your clean driving record should you decide to switch insurers.

Offence-Free Discount

In Singapore, being a safe driver might not just save your life, but it saves you money as well. 

You will be rewarded for not violating any traffic rules for three consecutive years, allowing you to request for a Certificate of Merit from the Singapore Traffic Police. 

With this certificate, some insurers may reward you with a further 5% discount on top of your NCD.

Restricted Drivers Discount

Car insurers also reward more mature drivers, giving them up to a 15% discount off premiums. You need to be above the age of 30 with more than two years of driving experience to qualify.

With these three things in mind, driving safe is all the more important for car owners. Not just for your personal well-being, also because driving safe and having a clean driving record will mean that insurers will reward you will lower insurance premiums! 

If you don’t own a car yet but you’re considering it, here you can read about the pros and cons of owning a car in Singapore to find out if a having car is right for your own situation.

 

This article was originally on GET.com at: 3 Easy Ways To Save On Car Insurance In Singapore.
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