10 Singapore Car Insurance Myths: True or False?
Car insurance can sometimes seem complicated, which is perhaps why there are so many myths surrounding it. But at DirectAsia.com we’re passionate about making car insurance simple and easy to understand, so in this post we de-bunk some of the most common car insurance myths…
- MYTH: My car insurance policy only covers me for driving in Singapore. This is a myth – most (if not all) motor insurance in Singapore provides coverage in West Malaysia and up to 80km from the border of Thailand, including car insurance policies from DirectAsia.com.
- MYTH: A red car will cost me more to insure.
It may be the colour of danger, but driving a red car does not increase your chances of having an accident – or at least, there have been no studies to support the notion. Insuring a red car will not cost you any more than insuring a vehicle of any other colour!
- MYTH: All car insurance policies are essentially the same, so I might as well choose the cheapest one. This is definitely not true. For example, a lower cost Third Party Only policy will not offer as much coverage as a more expensive Comprehensive policy, which for example may offer cover against accidental damage, window damage and towing costs. DirectAsia.com offers flexible policies that enable you to pick and choose the features you need. Other insurers tend to provide less flexible policies which automatically include features you may not need – but will have to pay for.
- MYTH: If my car is stolen or written off, I will be paid what it originally cost me. This is not the case. Your insurer will pay you the market value of the car immediately before the theft or accident resulting in a claim being made.
- MYTH: My No Claim Discount (NCD) will still be reduced even if an accident is not my fault. This may be true with some insurers, but if you are covered by DirectAsia.com your NCD will not be affected if you are found not at fault after our claim officer reviews your case.
- MYTH: Buying car insurance online is not as safe as buying it with a traditional agent.
This is not true. Car insurance has been sold online in Europe and the US for many years, and advanced security systems have been developed to ensure customers’ details are safe at all times. At DirectAsia.com we use Verisign technology to guarantee the safety of our customers’ information. However, for those who prefer a face-to-face transaction, insurance can be taken out in our central business district office.
- MYTH: I can save money by taking out insurance in someone else’s name and listing myself as a named driver.
This is definitely not true. Insurers are well aware of this practice – also known as ‘fronting’ – and are adept at identifying those who try it. Doing this is likely to invalidate your insurance policy and will definitely be more costly following an accident as you will have to meet the cost of repairs out of your own pocket.
- MYTH: I am covered to drive someone else’s car. Most insurers will not cover you if you have an accident while driving someone else’s car. However, some providers may offer this as an option.
- MYTH: My car is covered if it is damaged during a riot. Most insurers will not cover cars damaged in riots.
- MYTH: I cannot get car insurance if I have made two or more at-fault claims. If you have made two or more at-fault claims, getting car insurance can be challenging. However, some insurers do offer cover to high risk drivers – including DirectAsia.com. Our SOS Car Insurance offers a second chance to drivers who have claimed twice or more.