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What are the factors that will affect your motor insurance premium? Are they worth your penny? Does your vehicle have sufficient insurance coverage?
Let us address your concerns today!
1. Know the Types of Coverage Available
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Coverage for Third-Party Only (TPO) is perfect for drivers who seek minimum protection for liability against third-party damage or physical injuries. It is the most affordable motor insurance that meets the minimum legal requirement under Singapore law and regulation. However, you will have to pay for any repairs to your own vehicle.
Coverage for Third-Party Fire & Theft (TPFT) is a suitable balance for those who seek enhanced protection over TPO yet having premium that are more affordable in comparison to Comprehensive plans. Under TPFT coverage, one will be covered for damage done to your vehicle through fire or in the event where your vehicle is stolen. In addition, the repair costs to your vehicle in the event of fire will also be covered under the plan.
Coverage for Comprehensive is the safest bet for motor insurance albeit at a higher premium, the plan covers against damage in any natural disaster as well as for your own repairs, spare parts and windscreens/windows. Do note that if your car is still on a bank loan, the bank may insist the minimum motor insurance coverage to be of a comprehensive option.
2. Know What Kind of Driver Are You
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Ever wondered why are your personal particulars such as age and driving record are being requested by insurance companies before a carefully formulated quotation is being provided for your consideration?
This is because your motor insurance premium is calculated based on a variation of factors and listed above are a few that are known to play a considerable role.
- If you are a young or inexperienced driver with less than two years of driving experienced, or aged 70 and above, you are likely to be subjected to a higher premium due to increased risks.
- If you are a driver with two or more accidents or claims where you have been deemed at fault in the last three years, or has multiple traffic violations under your record, you are likely to be subjected to a higher premium as well due to increased risks.
3. Know the Vehicle You Are Driving
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Other than your age and driving record, the type of vehicle you are driving affects your motor insurance premium too!
This is because your motor insurance premium is calculated based on how expensive the vehicle would cost to repair in terms of both labour and parts in the event of damage. Performance cars tend to be subjected to higher premiums.
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