What Should You Look Out for Before Renewing Your Car Insurance Policy?
Aside from being a legal requirement, a good car insurance policy helps to financially protect you and your car against repair costs that are a direct result of physical damage.
Coverage can also be extended to ensure your car is insured against fire and theft, vandalism, or even damage from natural causes. With so many policies from so many different insurers on offer, how do you discern which is the right policy for you?
Opting for the right amount of coverage can save you plenty of headaches should you be involved in a collision, but you can also be overpaying for policy items that you may not need. When it’s time for renewal, should you shop around for a more competitive quote or should you stick to your current insurer? Here are key factors you should take note before you make your decision!
Understanding the Coverage You Need
Making an informed decision may potentially save you hundreds of dollars over the course of a calendar year. But before you can do so, there’s a need to understand the differences between the coverage.In Singapore, you can buy three different types of car insurance. Here’s a short breakdown of the differences between each of them!
Third Party Only
These policies only cover damage caused to Third Party property, and also assume legal responsibility for injury or death to someone caused by your car. There’s no additional coverage for you or your vehicle.
Third Party, Fire and Theft
You have the same coverage as per the policy in the second point, except that there’s also insurance against your vehicle caused by Fire or Theft.
While this may be the most expensive policy of the lot, it naturally covers more. Not only do you get covered for damage to Third Party, Fire and Theft, but you also get cover for damage to your own vehicle too.
As a general rule of thumb, age, driving experience, as well as prior accident history will all impact the premiums you pay. The younger you are, the costlier your premiums. Likewise, there’s an inverse relation between your years of driving experience and your payment sum.
The age of your car plays a big part too. Insurers tend to not offer policies to cars above a certain age, whilst your bank will require you to have a comprehensive policy if your car is still under financing.
No Claim Discounts (NCD)
You can save some cash at the time of renewal if you are entitled to an NCD. No Claim Discounts are accrued from not making any claims within a specified timeframe. Most policies will grant you a 10% NCD per calendar year without claims.
A maximum of 50% NCD is typically the norm locally, which adds up to fairly substantial savings should you be entitled to it. An NCD Protector ensures you keep your discounts should a claim be made - not opting for it typically results in significant deductions to your entitlements.
Shopping Smart for Further Savings
There’s no substitute for doing proper research. Comparing quotes across the various insurers may actually yield you a better rate than just renewing with the insurer that you are currently signed up with.Some insurers like Singlife offer perks over their competitors such as the lowest NCD penalty in the market. This translates into sizable savings on your premiums come renewal should you make a claim, as you’d only take a 10% reduction per claim^. A stark contrast to the industry’s standard of 30% deduction indeed.
Not All About the Lowest Cost
It is tempting to try and pay less for insurance. But objectively, low-cost policies may not offer the coverage necessary should you be involved in a collision. Ultimately, in a country like Singapore where cars cost as much as they do, it doesn’t pay to be penny wise, pound foolish.
Which is why the Singlife Car Insurance makes perfect sense. Singlife customers will be able to select their preferred workshop for repairs, 24/7 emergency services, as well as the industry’s lowest NCD penalty^, plus a waiver of additional excess for young and inexperienced drivers.It allows you to drive with peace of mind, sans the anxiety of hefty out of pocket expenses with the additional excess. And you can now enjoy the benefits at an even more attractive rate with up to 35% OFF* your car insurance plan. Get a quote now.
P.S. Keep an eye out for our 12.12 sale from 8 to 12 December 2022!
^Excluding the Motor Lite plan
*T&Cs apply. This policy is underwritten by Singapore Life Ltd. Motorist is not an insurance agent/intermediary and cannot solicit any insurance business, give advice, recommend any product or arrange any insurance contract. Please direct all enquiries to Singapore Life Ltd. Protected up to specified limits by SDIC.
Information is accurate as at 30 November 2022.
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