Car Insurance for Women in Singapore – A Comprehensive Guide
Did you know that on average women pay cheaper car insurance premiums than men? Why? Most insurers in Singapore (and worldwide) consider women safer drivers and are less likely to make claims, so their premiums are lesser.
In Singapore, most insurers consider gender when issuing a policy to a motorist, so women get to pay fewer premiums compared to men and as low as 14%!
While in Europe, it is illegal for insurers to use gender as a criterion for determining insurance premiums. Still, women in these parts of the world pay cheaper premiums than men. Why?
“Because men drive cars in higher insurance groups and work in professions that attract higher insurance premiums,” according to Dave Merrick, the head of car insurance at MoneySuperMarket Group.
What does this mean for you as a woman looking for car insurance? How can you take advantage of this to save more money?
You’ll learn all that and more in this article.
What are the available car insurance options?
There are three main types of car insurance:
Comprehensive Car Insurance:
As the name suggests, this is the most comprehensive car insurance
It gives optimal coverage for you and your car from fire, thefts and accidents, and third parties protection.
Third-Party, Fire & Theft (TPFT) Car Insurance:
This insurance only covers you if your car is involved in a fire or gets stolen. It also covers third parties that are involved in an accident. This policy does not cover you if your car gets damaged or needs repairs.
This car insurance only covers damage to a third party or their property. You would have to pay for damages to your car from your pocket. TPO is the cheapest car insurance available, and it is a basic requirement for motorists to get by Singapore’s Road and Safety Act.
Features and Benefits you Should Look for When Picking Your Insurance plan.
Some car insurance companies offer insurance plans exclusively for women, but you might not need all the features. Let us share the features you should look out for when picking your insurance plan.
Pay for Features Not Bundles:
Most insurance companies bundle up the features, and this might increase your premiums drastically. Pick an insurance company that lets you pick the features you want in your insurance policy.
They Offer Roadside Help:
There is nothing more upsetting than driving to work in the morning. Then you find out that you have a flat tyre or some mechanical fault with your vehicle – such scenario may result in a bad day.
Some insurance companies offer 24 hours roadside help, so if the battery of your car is dead, they arrive just in time to help you get on your merry way.
They Offer Repair Features:
Some insurers have authorized workshops they partner with to help fix your car. Opting to use the designated repair shop of your insurers helps you get your insurance premium down.
They Offer “No Claim Discount Protection” (NCD):
The more years you spend driving, the more reduction you get on your premiums. In Singapore, most insurers offer up to 50% NCD to reward safe driving. If you have managed to maintain a zero ‘at-fault’ driving record for the last 10 years, you can even enjoy NCD60 at DirectAsia, the highest level of NCD in Singapore. Also, it takes only 5 claim free years to obtain 50% NCD. Now, here’s a DirectAsia exclusive – you can obtain NCD60, if you maintain 10 claim free years. But there is a caveat.
In the event, you file a claim, and the accident was your fault, you will lose all or some of your NCD.
Customizable and Cheaper Excess:
Choose an insurance company that lets you increase or reduce the insurance excess you pay. You should consider picking an insurer that offers cheaper insurance excess.
Cheaper Premiums Vs Lower Excess – The idea here is to save money; there is no point paying cheap premiums and pay an expensive excess when you must make a claim.
Read Reviews About Insurers You Are Looking to Insure With.
A thorough review of what customers think about an insurance company can save you a lot of heartache in the future.
Spend some hours searching on the internet to find out what other drivers think about insurers they use.
Factors That Determine Your Premium Payments
In Singapore, insurers use different criteria to determine the amount of premiums you’ll pay. No two insurers are the same, so they might also use other factors to determine your premium.
But these are the general criteria that can determine your premium.
Gender and Age: Insurance companies offer cheaper insurance to female drivers than male drivers, but age also comes into consideration.
Younger drivers (male and female) pay higher insurance premiums because of their higher culpability percentage to have an accident.
Your Occupation and Car Usage
Some insurers might put your occupation into consideration, but not us at DirectAsia.
The usage of your car is also a factor. If you only use your car occasionally or periods where traffic is lesser (off-peak periods), you might enjoy lower premiums compared to a driver that relies on her car to commute to work and home every day.
The Car You Drive
The model of your car is one of the major determining factors too.
Is your car a premium model? Luxury cars, SUVs, and sports cars are more expensive to insure because of their expensive parts and cost of repair.
Does your car house a powerful engine? Cars with a high engine capacity incur higher premiums than cars with lower engine capacities.
Is it a new or old car? Some insurers charge more premiums on brand new cars.
Claims You Have Filed in The Last 3 Years
Insurers check the numbers of claims you have filed in the last 3 years; it is a standard question they ask in their insurance application forms.
If you have filed a claim in the past 3 years, you are more likely to pay a higher insurance premium. Why? Statistics show that drivers who have filed claims in the past have a significantly higher chance of filing another claim later.
Driving Experience and No Claims Discount
Insurance companies check how experienced a driver is to specify their insurance premiums. More experienced drivers get lower premiums, while it guarantees new drivers to pay higher premiums.
Here in Singapore, Certificate of Merit is only based on the demerit points due to traffic offences, not on accidents (not all drivers that get into accidents, get demerit points records). It entitles you to a Certificate of Merit from Singapore Traffic Police. [SH2] This certificate entitles a driver to a discount on her car insurance, and this even supersedes the No Claim Discount (NCD).
A driver that has built up her No Claim Discount over the years will have a more favorable insurance policy, and of course, cheaper premiums.
How to Lower Your Car Insurance in Singapore?
Compare Insurance Costs Between Companies:
Costs differ from company to company. Take some time to receive and compare quotes.
Look for insurers that let you pick the features you need in your insurance policy. Some insurers bundle up several features (some you need and some you might not need) to load up your insurance costs. Consider signing up with an insurance company that lets you pick your features.
Find Out If Your Current Health Insurance Company Also Offers Car Insurance:
Some insurers offer health, home insurance and even auto insurance. Inquire if your current home or health insurance company might also offer car insurance. It guarantees you a lower insurance premium cost.
If You Are A New Driver, Consider Having Telematics Installed in Your Car:
The black box or telematics is a technology that tracks all the location, speed, idling time, harsh acceleration or braking, fuel consumption, vehicle faults, and more. Having this installed in your car will help the insurer monitor your driving pattern and this can also help reduce the premium. Not all insurers offer this feature yet as it is relatively new.
Ask If the Insurer Offers Multi-Car Policy:
Practice Safe Driving:
Drive carefully if you want to keep your insurance premium low and build up a good ‘No Claim Discount’ that can lower your insurance premium.
Having a good insurance plan can protect you from a lot of unforeseen financial strains. When seeking insurance, have as many insurers send you their quotes so you can compare and pick the right fit.
And the most important tip: remember to drive safely always.