car insurance can be very expensive in singapore, especially if you have had any accidents in the recent past or have any traffic violations on your record. Even for someone with a clean driving record, the average cost of car insurance can range from around s$700 to more than s$3,000. But trying to drive without car insurance is very risky and could end up costing you thousands of dollars, your driver’s license, and even jail time. Here’s a list of the kinds of things you should be aware of if you’ve ever considered driving without a valid auto insurance policy.
singapore’s motor vehicle (third party liability and indemnity) law stipulates that a person caught driving a motor vehicle in singapore without insurance cover shall be guilty of an offense and liable to a fine of up to $1,000 Singaporeans, imprisonment for up to 3 months, or both. If he is convicted of this crime, he will also be disqualified from holding or obtaining a driver’s license for 12 months after the date of his conviction.
By actively choosing to break the law, therefore, you could end up paying a much higher price than the couple thousand dollars you might spend on a car insurance premium.
There are several exceptions to this law. You will not be convicted of this crime if:
what if you have a car accident?
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In addition to the legal implications and consequences you could face by driving without an auto insurance policy, you also do so at great risk to yourself and your financial well-being. If you are in a car accident while driving without insurance, you will not only have to bear the significant expense of repairing or replacing your car, broken personal belongings, and medical bills yourself. You could also find yourself facing a lawsuit from a third party and having to pay the third party’s losses, damages, and medical expenses as well. Ultimately, this could cost you many thousands of dollars that your insurer would otherwise have paid.
consequences of fronting
Some people with less than stellar driving records may be tempted to avoid paying the full cost of the higher premium that comes with being classified as a “high-risk driver” by engaging in a practice known as “fronting.” Fronting is when you try to get a cheaper rate on your car insurance using the details of a different, presumably better, driving profile. in short, it is a form of fraud. If you try this strategy to avoid paying higher auto insurance premiums, it’s possible to have your claims denied and your policies canceled outright, especially if you’re in an accident.
At the end of the day, while no one likes to pay for car insurance, trying to avoid it by breaking the law is likely to cost you much more than your premium would, both in time and money. however, there are ways to make sure you’re not paying more than you need to in your premium. If you’re interested in learning more about how to get the best bang for your buck when buying car insurance, consider reading our guides on choosing a car insurance plan and the top ways you can save on your car insurance.