“wow! It’s time to renew my car insurance, I’m so excited,” said no one ever. Yes, we may love our cars, but the main reason we buy car insurance is because it’s mandatory in Singapore.
Unlike almost everything else in the world (including cars!) where it’s fairly easy to shop around for the cheapest prices, car insurance is complicated because premium prices are quoted on a case-by-case basis. . On top of that, not all insurers will readily reveal their prices or quote you a price online.
Reading: When do you pay for car insurance
So if you’re looking to renew or buy car insurance, it makes a lot of sense to use a free tool like moneysmart’s car insurance comparison tool to help you find the best price on the market.
Of course, that doesn’t mean you should slack off. You need to take care of your auto insurance policy, because ultimately you need to know what you paid for, in case you have to file a claim. knock on wood.
We’ve made it easy for you to know all about the essentials of car insurance in Singapore with this comprehensive guide.
- how much does car insurance cost in singapore?
- How can I get the cheapest auto insurance possible?
- what is excess? and how much should it be?
- should i get comprehensive auto insurance or tpo (third party only)?
- what is the named controller? Should I add other drivers to my policy?
- what is ent? should i pay for ncd protector?
- Does the choice of workshop matter?
- What other benefits should I consider?
- how do i make a car insurance claim in singapore?
- Can I claim if my car has modifications?
- Can I claim for flood damage and other things out of my control?
- Should I buy auto insurance directly or through a broker?
- What happens if I cancel my auto insurance policy?
1. how much does car insurance cost in singapore?
two words: too much. you can expect to pay between $700 and $1,000, or more! — for one year’s coverage.
Your annual car insurance premium is calculated on a case-by-case basis. Basically, insurers try to calculate how likely it is that you will end up in an accident and how expensive it will be to pay the bill (ie the risk they are taking) by looking at the following factors:
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2. How can I get the cheapest car insurance possible?
You can’t change your age, driving experience, claim history, or car. but you can shop around and see who offers you the best price for your profile and car. start by getting quotes from at least 5 or 6 auto insurance companies.
However, don’t just pick the cheapest auto insurance you see. If you’re not adequately covered, cheap insurance is worse than no insurance at all because you’re just throwing money down the drain.
Cheap premiums sometimes go hand in hand with a high excess (the amount you have to pay upfront before the insurer starts paying the rest) and/or horrible terms & conditions (i.e. you can’t claim shit because everything is excluded). read the policy wording to make sure you really get the coverage you want.
if you’ve settled on a likely competitor, check to see if their plan can be customized, which is allowed by insurers like axa and aig. you may be able to modify some elements of your plan to get cheaper car insurance premiums:
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What determines your auto insurance premiums? Calculated on a case-by-case basis, annual car insurance premiums typically start from you play a role in deciding how much your car insurance premiums are here are some options you may want to consider how insurers determine your premiums determine your excess premium choice detailsnamed driver(s)$850
3. What is excess and how much should it be?
“excess” refers to the amount you must pay out of pocket before the insurance company pays the rest.
example: ryan is driving down the freeway, head nodding to a linkin park album, when a tree jumps in his path. he crashes into it, and the cost to fix his car is $2,000. the excess of it is $600 (for a fairly comprehensive plan). so he only pays $600 and the insurer will shell out the remaining $1400.
The excess is inversely related to the cost of the auto insurance plan. In plain English, this means…
Low excess = Expensive insurance premium. If an accident does happen, you’ll be happy to shell out just $600, especially since you may already be stressed about medical bills and having a tough time usually. But you’ll feel pretty broke when you pay your annual car insurance premium. if you’re looking for a low excess of $300 to $400 or so, you can expect to pay $3,000 more for your annual premiums.
high excess = cheaper insurance premium. The good news is that you’ll get a bargain on your auto insurance. The bad news is that you will be afraid to drive your car. this is a risk you may not want to take unless you are the safest driver in the world and enjoy the protection of a prominent deity.
Note that if you add a perceived “risky” handler, e.g. his son (under 23 with less than 2 years of driving experience) who just got his driver’s license: his insurer could force him to accept an additional young and inexperienced driver deductible without any discount on his premium .
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4. Should I get comprehensive auto insurance or tpo (third party only)?
tpo car insurance is the minimum requirement in singapore. it’s cheaper and only covers damage to other people’s cars. if you hit someone’s fender and he responds like you took liberties with his wife, you can claim damages to his car to shut that loser up. but you cannot claim for any damage to your own car.
Comprehensive auto insurance typically costs a few hundred dollars more, but it basically covers anything that could happen to your car, plus any other parties involved. As the name suggests, this type of car insurance policy has the most comprehensive coverage, including things like flooding… which never happen in Singapore because we only experience “ponds” (see section 12).
See also: Understanding Your Auto Insurance Deductible | Bankrate
Which one you choose depends mainly on the value and age of the car.
Consider tpo if your car is at least 10 years old and fully paid for, or you have a cheap (ha, “cheap”) used car and it’s already banged up anyway. if it is badly damaged, you can choose to scrap the car.
If you’ve saved up for years to buy your new car, you’ll definitely want to get comprehensive auto insurance. otherwise you will be in a world of pain when it inevitably gets damaged. the price difference isn’t huge anyway.
oh, if you bought the car with a bank loan or if you’re still paying the installments, you may not have a choice. no bank wants to retrieve a subaru from a drain.
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comprehensive car insurance fortunately, you have made the decision to purchase one of these setpo car insurances•it covers you and third parties•it is best if your car is new and represents a large expense•insures third parties only•best for used vintage cars !take notebanks will probably insist on comprehensive car insurance if you took out a car loan oh no! your car has collided with another
5. what is the controller named? Should I add other drivers to my policy?
When you sign an auto insurance contract, you are the default “designated driver.” in other words, figures like the excess belong to you.
Those numbers change if an unidentified driver hits your car. so you may pay an excess of $200 if you wreck the car, but if his brother removes a utility pole with it, the excess could be $1,200 instead.
Instead of letting that happen to you, consider adding other controllers. this used to incur higher premiums, but these days many insurers will let you add 3-5 designated drivers for free, as long as they are at least 27 years old and have a minimum of 2 years of driving experience.
If your little brother always “borrows” your car for his late-night prata races, you might want to think twice before adding his name. some insurers will impose a large deductible on you, e.g. $3,000 if you add a young or inexperienced driver to your policy.
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6. what is ncd do i have to pay for ent protector?
the ncd (no claim discount) or ncb (no claim bonus) is a discount applied to your premium if you’ve been good. You get this in 10% increments when you don’t file any auto insurance claims for the year, and it rolls over for each year with no claims.
(Ostensibly the ncd is your reward for being a “good driver”. But of course there are plenty of Singaporeans who have accidents, just small enough to pay cash instead of filing a claim.)
If you’re in an accident serious enough to file a claim, say goodbye to your beloved ent. most insurers deduct 30% each time you file a claim.
That’s why you should definitely add an ncd protector if you’ve reached 30% or more. it will preserve your ncd, but it’s usually only good for a claim, so you can’t just go out on a mad dash.
oh yes, if there is a change in car ownership, you may lose your ncd. Most insurers in Singapore will allow you to keep your NCD for up to 24 months. however, don’t assume this is always the case.
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what is ncd protector and should i buy it? the ncd protector prevents your ncd record from being clouded (only once though) if you have to make that rare claim what was that term? your insurance premium goes up 30% when you make an insurance claim without the ncd protector, 3 years of “good behavior” can easily go down the drain with a single claim maybe it’s not such a bad idea to have a no claim discount (ncd) drive carefully, because you can get a discount on your auto insurance premium for each year you don’t claim from the insurer. ncd goes up 10% every year, capped at 50% these days, you can pay more for a “ncd protector”
7. Does the choice of workshop matter?
let’s say you get into a minor mess and want your car fixed. insurers generally insist that you only go to their “approved” garages. Likewise, they can be picky about who fixes the car and what parts the mechanics can use. If you decide to have your car repaired by some kind of carousel, be prepared to give up your claim.
but most insurers allow you to top up extra to be able to claim at any garage. this is usually available as an add-on plan or as a completely separate plan.
If you are going to buy a new car and it is under warranty, you must be faithful to your dealer’s workshop or, otherwise, the warranty will be void. so you should opt for car insurance that allows you to go to any garage or your dealer’s workshop.
for second-hand cars, vintage cars or parallel imports, it doesn’t matter which workshop you go to. you can save on premiums and go with the authorized workshop plan.
See also: What Does BIN, RX, RXGRP and PCN Mean On An Insurance Card?
let’s see what all this means however you have a new audi under warranty, you must send it to an audi approved workshop the audi workshop is not covered by the pre-approved workshops of your insurance option to send your precious to the audi workshop so you must buy all workshops
side note: it’s not just workshops that might be restricted. In the event of an accident or collision, some insurance companies also require you to go to specific locations to have the damage officially assessed. check with your insurer about the sop.
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8. What other benefits should I consider?
Irreparable Damage Payment: Most insurers will pay the market value of your car if it is completely damaged beyond repair, but only for the first 12 months. and of course they won’t pay for your coe.
loss of use benefits: in most cases, your car will not be completely damaged. it just needs to be in the workshop for some time. so make sure you have decent loss of use benefits: most insurers give you at least a transportation allowance. If your livelihood will be affected by the loss of a car, such as if you have a sales position and need to drive a lot, this is important.
Personal Accident Coverage: Auto insurance policies typically include a payment to your dependents in the event of disability or death. Some insurance companies allow you to increase amounts for a fee, but you can also save money on a top-up if you’re covered by separate-paying insurance.
24-hour road and medical assistance: Some car insurance plans offer free 24-hour assistance in the event of an accident or breakdown, while others offer it as an additional option that requires you to pay a little more on medical and roadside assistance, including towing and jump-start services.
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9. how do i make a car insurance claim?
don’t panic! Check out our step-by-step guide to making a car insurance claim in Singapore. here’s the trick, in short:
- do not move your car unless absolutely necessary
- call your insurer’s hotline for help; don’t “act like a hero” and call a towing company on your own
- take photos. take all the photos!
- get the other driver’s contact details
- have your car repaired at an authorized workshop
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10. Can I claim if my car has modifications?
You may think you’re safe because your mods are lta approved. like those tire rims from hello kitty. surely those are completely benign, right? guess what, you may not be able to claim anything from your insurer.
If you plan to get modifications to your car, even if they are purely cosmetic like changing the tires, you should tell your insurer. Chances are they’ll charge more to insure your car, including modifications, but that’s better than denying your claims.
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11. can i claim for flood damage and other things out of my control?
since flash floods seem to happen so often in singapore, you may want to check if your insurance policy really does cover flooding…ponds…and other “acts of god”. The good news is that yes, some comprehensive plans do cover water damage. See our article on flood damage coverage in singapore for more information.
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12. Should I buy auto insurance directly from an insurer or through a broker?
I’m a nerd when it comes to optimizing things, but even I find the whole process of finding the best auto insurance a time-consuming affair and quite daunting. It’s no wonder most Singaporeans feel blissfully ripped off by automatically renewing their existing car insurance.
Knowing that other insurers may quote more competitive premiums to win over new customers, it may be wiser to compare auto insurance premiums.
After all, it won’t take long, as our auto insurance experts will do the comparison for you while you sit back and relax. And if it turns out that your existing insurer has the best deal, you can at least go ahead and renew without feeling like you’ve missed out on a better deal.
Of course, you can also buy car insurance directly, if you don’t mind checking the details and reading the fine print yourself.
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13. What happens if I cancel my auto insurance policy?
You may be totally in love with your car today, but you never know what might happen 6 months later. You may decide to sell your car, scrap it, or move to Timbuktu.
If you need to cancel your auto insurance policy, keep in mind that most insurers will reimburse you for only 70% of the unused portion of your insurance, upon receipt of your original certificate of insurance. the other 30% will be pocketed as an “administrative fee”.
On the other hand, your insurer may also decide to let you, for example, if you’ve made some unsubtle modifications to your car or you’re bleeding the insurance company dry with too many claims. she may be entitled to a refund. but if she has filed even one claim, she may have lost her right to it.
check the terms & conditions carefully to find out what happens in the unlikely event that you have to cancel the policy. things to remember to claim insurance don’t move your cargo from a bumpy ride to a smooth ride with these simple steps insurers may refuse to cover you unless they themselves have approved your mods (lta approved or otherwise) take pictures fix on your plan workshop approved mods some comprehensive plans offer coverage on matters beyond your control so if you cancel with 10 months remaining be prepared to lose 3 months of your insurance acts of god get third party contact details what else you can claim ?canceling your insurance30% of your remaining value administrative fee 70% of your remaining value refunded still looking for auto insurance? Check out our guide to cheaper car insurance.
See also: Can I Get Life Insurance on Someone Who Is Dying? | Northwestern Mutual