In the lion city, nothing ever comes cheap. If you’re considering buying a car, you might be squirming at the thought of having to get ridiculously expensive car insurance coverage. Is there any way to make your insurance premium a little less nausea-inducing? Yes, there is. In this article, we’ll show you XX easy ways to lower your car insurance premium in Singapore.
1. Get your driver’s license ASAP
To insurers, young drivers are seen as high risk and are therefore charged higher premiums. Experienced drivers on the other hand, are seen as less accident prone, and those who have owned their license for more than four years avoid getting charged more by insurers. What are you waiting for? Get your license now and thank yourself later.
2. Your No-Claim Discount (NCD) gives you lower premiums
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For every year that you stay accident-free, your NCD will increase by 10%, and is capped at 50%. As its name suggests, the NCD awards drivers who have steered clear of accidents by granting them discounts on their insurance premium. That said, if you’re a car owner who’s gotten into an accident for which you’re not liable, do not fear reporting your accident to your insurer and losing your NCD – your No-Claim Discount will remain intact.
3. Safe driving lowers your premium
Otherwise known as the “offence free discount”, a Certificate of Merit (COM) entitles you to an additional 5% off your premium. How does one go about getting a COM? It’s simple – If you’ve kept a clean driving record and have been claim-free for the last three years, the Traffic Police will notify and award you with your certificate. Do note that not all insurers offer COM discounts.
NTUC Income has also introduced Drive Master, an app that measures your driving skills – If you accelerate smoothly, brake well, and keep within speed limits, you earn points on the app, and these points could lead to a discount of up to 20% on your premium.
4. Personal accident coverage? No thanks
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If you already have a PA insurance plan, you can choose to opt out of PA coverage in your car insurance policy, and if your insurer allows. What’s PA coverage? Personal accident coverage is what protects and offers you a payout in the case of an accident.
5. Skip the car modifications, get lower premiums
Any undeclared car mods could raise your insurance premium, or worse still, cause your insurer to cancel your policy, both of which will empty your wallet unnecessarily. Do also note that the more modifications you make to your vehicle, the higher your premium goes.
“What modifications exactly?” you might ask. Well, each insurer has their own unique list of modifications that contribute to higher premiums, so before pimping your ride out, please, please, triple please, speak with your insurer.
6. To keep your car insurance premium low, don’t add named drivers
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This one is a no-brainer. The more named drivers you add to your policy, the higher your premium will be, especially if said drivers are young and inexperienced. If you’ve got no restraint, and five reckless brats who love driving your car (and you insane), we really feel for you and your wallet.
7. Do you really need a courtesy car?
Many insurers offer policy holders a courtesy car whilst their damaged vehicle is in the workshop. While this is a huge relief for drivers who greatly rely on private transport, you can choose to opt out of this clause and save some moolah if you’ll be alright without a car.
8. Consider a dual-year policy
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Most insurance policies last a year, but some insurers like Aviva have introduced two-year policies. You would be forgoing your chance of taking advantage of lower premiums from a different insurer in your second year, but could also possibly be locking in an unmatchable price for yourself. If you’d like to enjoy some assurance that your premium won’t be hiked the following year, this could be a great option for you.
9. Got in a car accident? Settle it privately
If you’ve gotten yourself in a mishap, it might be good to settle matters privately if your car hasn’t incurred much damage and repairs might cost, say, just a few hundred dollars. This’ll not only protect your NCD, but also save you the hassle of going through the compensation process with your insurer.
A private settlement also helps if your excess is much higher than your actual repair costs. Do remember that both parties will still need to sign a private settlement form and submit it to their insurers.
10. Shop around, and look out for car insurance discounts
If you’re a first-time buyer, you might not know that your car dealer will impose a penalty fee if you do not purchase your insurance policy from them, and that these policies typically cost significantly more than the usual car insurance plans offered in Singapore.
This is why we strongly suggest buying your insurance from a provider you can trust – there are countless options to be found online. Even if it makes more economic sense to buy your insurance policy from your dealer in your first year, you can choose to save big time by renewing your policy with a different insurer in your second year.
From time to time, insurers also offer special promotions that could help you save substantial moolah, so always weigh all your options carefully and remember, cheapest is not always best.
11. Opt for higher excess to lower your premium
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The higher the excess, the lower the premium. An excess is the sum you’re required to pay when making a claim, so if your excess is set at $2K, and you’ve got repairs of $6K, you’ll have to pay the initial $2K while your insurer will pay the balance of $4K. If your repair costs amount to less than $2K, you’ll still have to pay the full cost yourself.
If you opt for a lower excess, you’ll have less financial risk in the case of an accident, so it’s all a matter of balance and weighing the potential costs. Most insurers will gladly adjust your excess based on your budget and needs, so be sure you’re settling for something that’s reasonably for you to commit to.
If you’re still finding yourself a little unsure about where to start, fret not! We’re here to help. Apart from these 10 ways to lower your car insurance premium in Singapore, our seasoned consultants have much more tips and tricks to offer you when it comes to motor insurance – We’re only a call or WhatsApp message away.