Factors to Consider when Choosing a Car Insurance in Singapore
It’s a well-known fact that you need to first get a car insurance before you get to drive your car on the road. So what makes a good car insurance? The cheapest? A brand you are familiar with? Or one that you can subscribe easily without any hassle?
It is no doubt that getting the right car insurance is important. It is a way to ensure that you protect your prized asset when the unfortunate happens. Like getting any insurance policies, you’d want to know what to look out for so that you are not paying for something that you do not need, or worse, that doesn’t provide the coverage you thought you had. So here’s a look at the important factors to consider before you purchase a car insurance.
Most car insurers here provide you with three types of coverage options:
- Comprehensive - for the greatest peace of mind
- Third Party Fire & Theft (TPFT) - for a bit more than the minimum with extra options
- Third Party Only (TPO) - the lowest mandatory coverage you need to drive your car in Singapore
Comprehensive is the most complete cover and shields you from the daily dangers you face for yourself, your car and others. It also protects you against rare incidents like fallen trees, floods and natural disasters. This is especially recommended if your car is new and you want to do your best to protect it.
TPO car insurance is the minimum requirement here, and it is also the cheapest of the three. It only covers damages to other people’s cars but not your own. So if you’ve got a spanking new car and if someone accidentally scratched it, the reparation cost is entirely on you.
Can car insurance be customised? Yes of course, but not every insurer provides this option. Customisation can sometimes help you to save more money since you can choose to only pay for what you need.
For instance, each of our cover provides three driver plans so that you only pay for who’s really driving the car. Why pay a more expensive premium that covers 3 drivers when you are the only one using the car?
An excess, otherwise known as a deductible, is the amount of money you would have to fork out first before you get to claim from the insurer. The amount of excess payable differs from insurer to insurer so check that you are comfortable with the amount you need to pay. It is also possible to have a higher excess in order to enjoy lower insurance premiums.
4. No Claims Discount (NCD)
NCD is a brilliant way to reward safe drivers. Basically, it is a discount awarded annually by your car insurer if you have not made any claim on your existing car insurance. Your safe-driving record will also allow you to “stack” your NCD - 10% discount on your first year, 20% discount on your second year and up to 50% for most car insurers. At DirectAsia, we go further to reward safe drivers who have held the NCD50 discount for 5 consecutive years to the NCD60 discount! This entitled qualified drivers to get an additional 10% discount on their car insurance base premium!
It might sound like a tall order for some to maintain such a long no-claims record, but experienced drivers will understand that it is a really huge incentive to drive safely and be entitled to the NCD. Thus, DirectAsia offers the NCD Protector Plus which can help to protect your NCD status even if you’ve made one claim.
5. Coverage for Malaysia
If you intend to drive your car to Malaysia for a road trip or a simple shopping trip over the weekend, check that your insurer provides you coverage in Malaysia. For DirectAsia’s customers, your policy covers you when your car is in Singapore, West Malaysia and Southern Thailand.
The last thing you want is to be stranded in a foreign country after meeting with a car accident and not being able to have an insurer which can help you with the claims process.
Shopping around for car insurance quotes is easy nowadays and the application process is as simple as clicking on your mouse. You can fill out a form online and get a quote within minutes!