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5 Myths You Can Usually Hear about Car Insurance

When purchasing a car in Singapore
When purchasing a car in Singapore, aside from preparing yourself for the hefty amount of money that you will need, for sure you have also done your research about things in lined to owning a car ─ in order to avoid misconceptions and unnecessary situations. This includes car insurance, which every car buyer and the owner should always put in top priority, given that the state where you live in mandates every single car (as well as a motorcycle) on Singapore road to have valid auto insurance.

However, not all of us are experts when it comes to insurance, chances are we might face difficulties understanding what car insurance is and how does it work. In order to save you from the misleading information when it comes to having private car insurance, here are some of the common myths or rumors about car insurance that need to be driven out.

1. The color of cars affects the insurance premiums and deductibles

Doesn’t it sound ridiculously funny how the color of your car determines your car insurance premiums? Despite this sounding unbelievable, many believe about one of these biggest auto insurance myths. One of the possible reasons about this is because a red car, for instance, is considered attractive and therefore becomes more prone to theft, which will lead to a higher car insurance payment. What you might not know about is that the color or shade of your car has nothing to do with determining the insurance premium of your car. As a matter of fact, many insurance companies don’t even bother asking what your car color is before giving you a quote.

2. Car insurance costs higher when you get older

Although the age of the person is one of the factors that affect the cost of car insurance premiums, this does not necessarily mean that the older you get the higher your auto insurance cost will be. In fact, those who are over 55 years of age can have a reduction in their car insurance premium once they successfully complete an accident prevention course. In addition, car owners who tend to drive less, given that they are retirees or aren’t employed full time will be entitled to a discount on their car insurance.

3. The No Claims Discount (NCD) will still be affected even if it’s not the driver’s fault

One of the best extra benefits your car insurance policy can give is the No Claim Discount (NCD) for those who keep safe driving. For each year of not making a claim, a 10% discount can be enjoyed, therefore being a safe driver for five consecutive years, you will only have to pay for half the cost of your car insurance premium.

However, accidents can happen at the least expected time and place. This can either damage you, your car or a third party, and can result in a higher premium if you are to claim your insurance, therefore affecting your NCD. The good news is your NCD will remain intact if the car is damaged, in which you are not at fault.

4. You will be paid what your car originally cost if it got stolen or written off

Although it may sound good to be paid with the exact amount of your car in case it gets stolen or damaged, this is actually a misconception. The truth is you will only be paid the market value of your car.

5. Auto insurance protects valuables inside your car

Despite having the best car insurance, such as comprehensive insurance which provides some sort of theft coverage, this doesn’t mean the valuables inside your car is also covered. This only insured the car ─ not the things that are inside the vehicle.

Need a quote about car insurance? Autoshield can be your guide! Reach us through our customer care hotline 6385 0777 or by sending SMS to 8588 9191, 8686 9991, 8688 9991, 8588 9991, 8866 9991, 8868 9991, 8668 9991.
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