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10 Things You Should Be Aware Of About Car Insurance

Whether you’re a driver who owns an old car or a holder of a brand new auto, availing for private car insurance should be a top priority. This does not only protect the car itself, but as well as the one who drives the car, and the other drivers─it is truly beneficial and not just made for no reason.

On the other hand, getting your four-wheeled vehicle insured is not as easy as buying a piece of candy, in fact, it is more like purchasing life or health insurance for there are a lot of things that need broad knowledge and a deeper understanding. As a guide, below is the list of things to put in mind before deciding which auto insurance coverage you will sign up.

1. Must have a car insurance by law

As ordered by Land Transport Authority in Singapore, a car holder is required to purchase a private car insurance for his vehicle. In line with this, the Third-Party Risks and Compensation of Motor Vehicles Act, an Act Liability Only policy also mandates every driver in Singapore to have their auto insured. With this policy, the driver is insured against the third party costs associated with injury or death in an accident that is determined to be his (the wheelman) fault.

2. Car insurance cost depends on various factors

It is important to know that not all car insurance costs the same. The charge may vary in different factors including the model of the car you drive, your age and experience in driving, occupation and so on…

In line with this, owning an auto which measures less than 8,000km per year can help you save money as the car can be registered as off-peak. Not to mention that you can also get to enjoy higher discounts from insurance providers due to the fact that your car is off the road during heavy road traffics, in which car accidents are most likely to happen.

More so, you may check the other factors that affect insurance premium

3. Auto insurance is based on the market value of the car

As mentioned earlier, the car insurance premium may depend on the make, which is the maker of the vehicle, and model of your four wheels. The private car insurance provider can help you determine the cost of the premium by the performance and risk potential of your car’s make and model.

4. Named drivers

Aside from the owner of the car, there might be other person driving the car and in this case, a car insurance provider will ask you to list up to 2 names on the policy, in which you will be the default named driver. The cost of the premium may vary on the number of drivers that are registered.

5. Higher deductibles (excess) can lower the premium

Excess, otherwise known as a deductible, is the amount you agree to pay towards a claim. It is best to understand that the higher the deductible there is, the lower premium the insurance provider will give.

6. No-Claim Discount (NCD) for safe drivers

In any case, you may want to avail a discount on renewal premium, might as well drive carefully─making no claim during the year─as the safest driver will be rewarded with No-Claim Discount.

7. Add-ons

For both old and new drivers who want to level their car insurance coverage, there is a variety of add-ons available including the Courtesy Car Benefits also known as the Replacement Car Benefits, in which the insurer can have a rental car for three days whilst the auto is under repair. The Additional Personal Accident Cover and Personal Accident for Passenger covers a lump sum pay-out by any chance death or bodily injury occurs. Excess Waiver wherein the insurance company will pay for the full claim.  In Waiver for Young Driver Excess add-on, the insurer takes a huge amount of deductibles when the driver is younger than 27 or in a certain age under the insurance provider’s description. These are just a few of the many add-ons a car holder can choose to avail.

8. Report claims as soon as possible

Just in case an accident occurs whilst you are on the road, it is important to know that not only your family needs to know it but your car insurance provider too. In this point, the insurer can give helpful advices.

This includes claiming procedure, damage assessment, and other important things to a car driver must know in times of accidents on the road.

9. Track driving behavior

With the help of the advancement in technology, car insurance providers are able to track the driving behaviors of a car holder by means of plug-in telematics device or mobile phone-based telematics.

10. Review the best car insurance coverage from time to time

If you’re thinking about having an auto-renew for your auto insurance, better not have it because you might stumble upon an insurer which offers great deals on car insurance coverage in Singapore. With regards to this, surfing the internet is one of the best ways to look for a car insurance provider that offers optimum premium perfect for your car's not needs!

In addition, if you wish to get the best insurance quotes and compare among the other insurance providers in Singapore, Autoshield may be your partner. You may reach us through our customer service hotline at 6385 0777 or contact us via SMS at 8588 1688, 8588 9191, 8686 9991, 8688 9991, 8588 9991, 8866 9991, 8868 9991, 8668 9991.
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