Tips to Lower Motorcycle Insurance Premium | How to reduce Premium
Top Tips to lower Motorcycle Insurance Premium in Singapore
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Owning a motorcycle is a dream for most youngsters. Motorcycles in Singapore come at a premium. If you have become the proud owner of a motorcycle in Singapore, you need to be ready to shell out some precious dollars on insurance as well. When you own a brand-new motor cycle, you may wish to choose a more comprehensive cover for your precious possession. Motor insurance does not come cheap here, and the insurance premiums can create quite a dent in your monthly budget. In this article, we will be looking at a few ways in which you can lower your motorcycle insurance premiums in Singapore.
When you are looking for an insurance cover for your motorcycle, the first decision that you need to take is regarding the type of insurance policy to buy. There are 3 types of motorcycle insurance in Singapore:
Third Party Liability Cover
This is the bare minimum insurance as mandated by law. Third party motorcycle cover will insure you against any third-party liability such as death, bodily harm or property damage to a third party due to an accident involving your motorcycle. It does not cover you for any injury that you may sustain or any damage to your motorcycle due to an accident.
Third Party Fire and Theft Policy
Under this plan, you are covered against third party liability due to accident involving your motorcycle. Apart from that, you are covered against theft of your motorcycle and total loss due to fire. Fire and theft coverage can be added on for a small extra premium.
Comprehensive Coverage
If you have bought yourself a high-end motorcycle, it makes sense for you to opt for a comprehensive insurance coverage. Most banks and financial institutions insist on a comprehensive cover as a pre-condition for offering motorcycle loans. Such a policy will offer you coverage against personal injury to yourself and damage or loss to your motorcycle due to any accident. This is in addition to covering third party liability, fire and theft. A comprehensive cover covers you against almost all kinds of risks. Hence, the premium for such policies tend to be higher than what you would pay for a third-party liability cover or a third-party fire and theft cover.
Add-ons
Add-ons are additional cover that you can choose if required, for an additional premium. Some of the add-ons that you could consider are:
Emergency 24 Hour Roadside Assistance Cover
If you are always on the road, it might be a good idea for you to choose emergency assistance cover as an add-on. This coverage would offer you round- the- clock help with any emergency breakdown issues. This includes minor on-site repairs, tyre changes, lost key assistance, battery jump starts, fuel tank emptying, towing charges and so on. This add-on cover can save you a lot of trouble during those long, arduous rides.
Medical Expenses
In case you or any driver authorized by you (depends on your coverage) is injured in a motorcycle accident while riding the insured motorcycle, the medical expense is covered (coverage limit is applicable). Your passenger’s medical expense is also covered (coverage limited is applicable). For ex: DirectAsia offers a coverage amount of S$2500 for you and any authorized driver and the same coverage is provided to the passenger.
Any Rider Protection
Coverage for any unnamed rider who rides your insured motorcycle with your permission. Terms and conditions apply.
Personal Accident
In case of any unfortunate happening like death or accident resulting in permanent loss or damage of any organ of the motorcyclist, he, or his family (in case of death) will get the insurance claim amount. DirectAsia offers up to S$ 100,000 for death and/or loss of sight or limbs.
Tips on how to lower your motorcycle insurance premium in Singapore
- The amount of premium that you pay will be directly proportional to the value of your motorcycle. If you have bought a high-end sports bike with higher capacity, you will end up paying high premiums. Smaller capacity, commuter bikes will cost you less to get them insured. Please keep this in mind when you choose your motorcycle.
- Your riding experience is another factor that the insurance company considers as important while fixing the premium. An inexperienced rider poses a higher risk than a rider who has several years of riding experience. It will be a good idea to own a lower cc bike whose premium may be low, ride and gain experience before switching to a higher cc bike – helps in keeping your premium low.
- Your riding history is another factor that can come to your aid. Most insurers offer a feature called “No Claim Discount”. If you do not make claims for a few years, you become eligible for discount on the premium that you are required to pay. Being a cautious driver and not running into any accident can certainly work to your advantage. Similarly, it would be advisable to desist from making very small claims that can affect your claims history. Also, safe driving may also result in Singapore’s traffic police issuing you a certificate of merit (COM) which labels you as a low-risk driver. A person with the certificate of merit may get you a offence-free discount on premiums.
- Another way to lower motorcycle insurance premium is by agreeing to pay a higher “deductible” or “excess”. Deductible(excess) is the amount that the customer agrees to pay, whenever a claim arises. The remaining amount is paid by the insurance company. There is an inverse relation between the amount of deductible and the premium amount. The higher the deductible that you agree to pay, the lower would be your premium. In case you are looking at shelling out a smaller amount as premium every month, you could opt to pay a higher deductible.
- The usage types are another factor that can determine the amount of premium that you are required to pay. A rider who spends more time on the road poses a higher risk for the insurance company and would need to pay more. There are 2 usage types: Private and Commuting use and Private and Business use. A rider who falls under the second category would need to pay a higher premium since he would be spending more time on the road, thus increasing the risk factor. For example – if a rider uses his bike for food deliveries, it will affect the insurance premium.
A motorcycle is often a dream purchase for many. It is important to safeguard your motorcycle with the right type of motorcycle insurance. By making your own comparison of the offers from various insurance companies and by using some of the tips to lower your motorcycle insurance that we have shared in this article, to you can make sure to get the best deal that ensures you pay a lower premium. On a happy note, know that Direct Asia offers NCD30 for safe riders that comes with an extra 10% off premium.
