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Switching Your Car Insurance - FAQs | DirectAsia Insurance

Thu, 05/17/2018 - 15:10

In this day and age where buying a product becomes as easy and efficient as a click of the mouse, it is not uncommon for some of us to experience “buyer’s remorse”. Perhaps buyer’s remorse hit typically when  you’ve bought a new gadget online and found that it didn’t work quite as well after it’s delivered. This may be a little less painful than say, a subscription where you’d be committed to for a year, like a telco contract or a car insurance policy?

In your haste to get a car insurance so that you can start driving on the road, you might have been tempted by one which promised you new sign-up discounts. Upon going through the details and later comparing with other insurers, you realised you’ve paid more than you should. What can you do now? Do you need to stick it out with your wrong choice for one year, or do you have the choice to switch insurance mid way?

Many drivers may not know this, but yes, you can switch your car insurance before the end of an annual term. Here are some common questions we get from customers who want to switch their insurance to DirectAsia, and we hope you will too!

1. How will the switching work? Do I need to cancel my previous car insurance first?

It doesn’t quite matter if you get a new policy before cancelling a new one or vice versa. You just need to inform the insurers on the right cancellation and new policy start date so that you enjoy continuous coverage.

2. Are there any penalties for switching car insurance before a year? What's the cost?

Some insurers do charge an administration fee for cancellation of the policy, but you may be eligible for a refund for some of the premiums paid upfront on a pro-rata basis.

3. Will I get a refund for switching car insurance from my previous insurer?

If you cancel your policy before it expires, you should be able to get a refund for the remaining period of the insurance premium paid. Do note that the amount of refund most likely varies between different car insurers. However, there will usually be no refund if a claim has been made.

4. Can I switch/transfer my car insurance from my previous car to a new car that I'm buying?

Transferring your insurance from your previous car to a new car is unfortunately not allowed by most insurance companies because the make and model of your next car will usually be quite different from your previous one.

5. Will my NCD be intact if I switch car insurance?

While you can’t transfer the car insurance for your previous car to your new car, the good news is that you can keep your NCD intact. Your new auto insurer will check your NCD eligibility and quote you a premium accordingly.

6. Can I switch car insurance in the middle of a claim (where I was at fault)?

No, since your current insurer will likely be processing your claims. If you cancel your policy right after a claim, you will not be entitled to a refund as well (see point 3).

Ready to switch over to DirectAsia? In fact, if you have been a safe driver and has been enjoying NCD50 with your current insurer, you might be happy to know the DirectAsia is the only car insurer in Singapore to offer NCD60! Click here to get an instant quote or call us at 6665 5555 for further assistance.