Certificate of Merit: How to Use For Insurance Savings
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How to Lower Car Insurance Premiums with a Certificate of Merit
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Are you a safe driver and looking to save some on your car insurance premiums? Singapore drivers with a clean driving record for 3+ years can obtain a Certificate of Merit from the Singapore Traffic Police, qualifying for up to 5% additional discount on car insurance premiums.
This guide explains all things about the Certificate of Merit: eligibility requirements, application process, and how you can use a Certificate of Merit (COM) to save big on your car insurance.
What is a Certificate of Merit for Driving
The Certificate of Merit is a document issued by Singapore’s Traffic Police as an award for driving safely in Singapore for at least 3-years or more. Being a low-risk driver entitles you to a ‘Safe Driver Discount’ by most car insurance companies, including DirectAsia. What’s more, this discount is added on to your no-claim discount (NCD) for extra savings!
Driver Improvement Points (DIPS)
To keep track of your driving record, there is a system known as the Driver Improvement Points System (DIPS) which keeps a track record of traffic violations of every registered driver in Singapore. Under this system, there are penalties and rewards, with COM belonging to the latter. Maintaining zero demerit points for 3+ years qualifies you for a Certificate of Merit.
Am I Eligible to Receive the Certificate of Merit?
To qualify for a Certificate of Merit in Singapore, you must:
- Hold a valid Singapore Driving license
- Maintain a demerit-free driving record (zero-demerit points) for at least 3 consecutive years
- Have no outstanding fines or traffic violations
You can check your eligibility on the Singapore Police Force e-website before sending in your application.
To qualify for the Safe Driver Discount when buying car insurance, your driving record must be free of traffic violations for at least 3 consecutive years before you sign your insurance policy. So, new drivers who have just gotten their driving license are not eligible for the certificate.
Is the Certificate of Merit Transferable?
No, you cannot transfer your Certificate of Merit to another driver. This is because the merit is given based on individual driving behaviour as well as abiding by Singapore’s road safety rules.
The same goes for your car insurance policy; you cannot claim a discount based on your parents, spouse’s, children’s, or other named driver’s Certificate of Merit. If you are the main driver, your base car insurance policy will be adjusted according to your driving profile. In other words, only the Certificate of Merit of the main driver is considered when purchasing car insurance.
How Can I Get the Certificate of Merit in Singapore?
You can check your eligibility for Certificate of Merit via the Singapore Police force e-Services.
How To Use the Certificate of Merit to apply for My Car Insurance Discount
Basically, the certificate of merit rewards safe drivers with discounts to their insurance. To utilize your COM to obtain the safe driver discount, you have to declare it upon application of your motor insurance.
Most auto insurers in Singapore ask for eligibility of Certificate of Merit during the insurance quotation process. For example, DirectAsia has a section that asks about the main driver and his/her entitlement to a Certificate of Merit, as part of their quick quote process online.
The insurer will then verify your eligibility for a Certificate of Merit through the EDDIES (or Electronic Diver Data Information and Enquiry System). The system will calculate the Safe Driver Discount in addition to whichever No-Claim discount you currently qualify for.
Alternatively, you could also contact your insurer to declare your Certificate of Merit, so that they can process any discounts that you’re eligible for.
How Much Can I Save With a Certificate of Merit
Typically, you can expect up to a 5% discount with a COM but it ranges for different insurers.
And if you’re eligible for a COM, it means you displayed 3-years of good driving behaviour and most likely not made any prior car insurance claims. So, you would have accumulated at least NCD30 as well.
Basically, the Safe Driver Discount will be calculated in addition to whichever No-Claim Discount you’re currently entitled to.
Will Demerit Points Affect My Certificate of Merit?
Unfortunately, yes. Demerit points may affect both your eligibility for a COM and your risk profile, which can influence premiums.
If you receive demerit points after obtaining your Certificate of Merit:
- You'll need to maintain a clean record for 3 more years to become eligible again
- Some insurers may require you to declare if you've received new demerit points
Obtain Your Certificate of Merit and Save Big on Car Insurance
Safety should be top priority for all drivers.
And if you want to save on car insurance in Singapore, remember that good driving behaviour can qualify you for discounts - the COM and NCD are testament to this. Have a COM? Get a quote from DirectAsia to enjoy your discount today!
