4 Areas to Customise in Your Plan and How to Use Them to Save More on Car Insurance
We let you customise your cover. Our belief is that you should pay only for the cover you need. Nothing more. Sometimes that will save you money, sometimes it won’t. But we want to be fair to all buyers.
Getting a price to you is the easy part. Making sure you fully comprehend your policy, choices you can make, etc is harder. And many companies (not us) hide behind cryptic legal speak, bury policy disclaimers or otherwise try to minimise things that might scare you away. They make buying car insurance tricky.
At DirectAsia.com we’re always working to try to sell to you more directly. That doesn’t just mean online. That directness also means straightforward speech.
So we’ll say again, if you don’t understand anything you read online, in your policy documents or anywhere else, please contact us, call us or comment here and we’ll do our best to make sure you understand.
What are the Buying Steps?
Buying a policy with DirectAsia.com involves customising in 4 areas. There are more than 4 steps when you go to get a quote, but to simplify the way you think about your policy there are 4 areas to decide on:
- Usage – how you’ll be using your car and where
- Plan Type – what type of cover you want (minimal up to full)
- Who’s Driving – who will have access to the car and will really be driving it
- Options – anything else you want to add on (modification cover, personal accident, etc).
The details of these points are where you really make your cover unique.
Why pay for cover you don’t need?
For many people this will help save on your policy. For others it might make you pay more. Everyone’s a safe, proven driver? Then the policy is cheaper. If you have more risky drivers using your car, it’s more risky for the insurer and you pay more. All insurance companies do this. But we want to make sure you understand.
Generally as you go on your policy gets cheaper as you age, grow your NCD, etc. So it’s always better to declare truthfully early and drive safe. Rewards follow safe, honest drivers.
How will you be using your car? Where will you be using your car? Will you drive only in Singapore?
Some policies will charge you based on averages…most Singapore drivers will go into Malaysia so all drivers pay premium for driving in Malaysia. We Don’t. Declare anything unique in your driving and you could save.
Two ways you could save based on your usage:
- We have a Low Mileage Car Insurance option for those with weekend plates or who just don’t take their car out that much. If you commute on public why pay for a policy like someone who’s driving? Save!
- Drive in Singapore only? Let us know and we can save you money too.
Your plan type is the next major decision for your policy. Basically you need to decide on how much cover you want for your vehicle? Some drivers want only the bare minimum required by law and others want to be covered even if non vehicle damage happens (falling branches).
This is tricky because less cover is always cheaper, but it also leaves your car exposed. Only you can decide what’s right for you. Choosing simpler cover is a gamble in expensive Singapore. Maybe nothing happens and you save a few hundred bucks. Maybe something bad happens and the small savings on cover are crushed by a larger out of pocket expense.
It’s your choice. Base it on how you drive, what you can afford and what it’ll cost you if something happens.
We have 3 Major Plan Types:
- Third Party Only (TPO) – the bare minimum to drive under Singapore law. Will cover liability against 3rd party property damage or bodily injuries. We’ll also help with legal expenses.
- Third Party Fire & Theft – same as the above with additional cover for damage from fire or if your car is stolen.
- Comprehensive – all of the above plus if you have an accident with or without any Third-Party vehicle or your car is damaged by any natural dangers including floods or a fallen tree you will be covered. You also get towing, windscreen cover, spare parts and more.
The concept here is pretty straightforward in theory. If potentially dangerous drivers will be using the car, you pay more. If you’re safe and only you are driving, you pay less. Again this is another area where some insurers average things out. We charge you based on who’s really using and have three basic driver plans: Value, Value Plus and Flexible plan.
- Value Plan – You have to name every person who will be driving your car. Anyone you don’t name when you setup the policy won’t be covered. Full stop. You can choose up to 4 named drivers, 2 of which can be young and/or inexperienced*.
- Value Plus Plan – Whoever is chosen as the main driver and any drivers 30 years old and above with at least 2 years’ valid driving licence you’ve authorised will be covered. In addition, you can name up to 2 young and/or inexperienced drivers*.
- Flexible – Covers the main driver and any other authorised driver(s) who owns a valid driving licence. Basically anyone with a valid license can drive your car with your permission and will be covered under your policy.
*Note that young and/or inexperienced drivers are aged below 30 and/or with less than 2 years’ valid driving licence.
Finally you need to choose any additional coverage options you’ll need such as LTA Approved Modifications, My Workshop, Repatriation Costs, etc.
NOTE: some of the options are only available under certain plan types. So if you want My accessories you can’t have a TPO Plan.
Read more about options here.
We’re transparent on our car and motorcycle insurance policies. We’re also very open about how we handle false claims. It sounds harsh, but some have tried to declare different main drivers, users, usage, etc in order to save on their policy costs.
If we find out, we’ll require you to pay more and in many instances you can lose a claim.
Those who get caught are upset and have complained online. We’d think they’d be a bit more embarrassed. If you try to rob a bank and get caught you don’t blame the bank.
We lay out these custom options so you can save…if that’s how you drive. We want you to save, really. And most will. Just don’t try to cheat or game the system. If it means your quote is higher, we’re sorry. Stick with us and it’ll go down or maybe we can work something else out too.
Take your time when you set up your policy. Read your policy documents. Ask questions. We’re here for you. Always remember you’re signing a contract that’s a legal agreement. You can’t say “I forgot” in court. If you don’t know the answer to something when setting up your policy, just save and go find out. The quote will still be waiting for you when you find the answer