First Car Insurance – Quick Guide | Car Insurance for First Time Drivers

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First Car Insurance – A Quick Guide

The first car is no less than a lifetime achievement. Excitement is on the next level when you get the car registration in your name.

As you know, one of the most important things that you need to do while purchasing your first car is to buy good car insurance that will provide you the right protection in case you meet with an accident. If you are a first-time car buyer who is looking for your first car insurance – this article is for you! Go through this quick guide to understand everything that you need to know about buying your first car insurance. Read on. 

Types of Car insurance in Singapore

So, here are the types of car insurance that can cover the expenses in case of accidents. Let’s see what each type can cover for you:

1.      Third-Party Only (TPO) Insurance

This is one of the basic types of insurance. If you want to cover the other people aka passengers of your car, then this is the one to use. Moreover, the TPO Insuranceis said to be the policy that covers third-party damages such as passengers, street lights, other cars, etc., but it will never cover your vehicle or owner of the car.

So, if you think your first car is affordable for repairs by you, it is the best choice for you. Otherwise, let’s move towards other types of insurance and keep our options open.

2.      Third-Party, Fire, and theft (TPFT) Insurance

It is similar to the TPO, but it adds some other benefits to it such as covering the theft of your vehicle, damages from theft, and fire damage.

So, for example, your car had an accident, you can claim the same coverage as TPO. But if it is a case of theft, it will cover the theft and any damages due to theft too. And fire damages are also covered by TPFT Insurance policy.

3.       Comprehensive Car Insurance

This is a broader type of insurance with more coverage. This can cost you more than TPO and TPFT, but with extensive coverage. This one is the highest level of car insurance for the drivers. It covers everything in TPFT and it also covers the damages of the vehicle of an owner. The benefits of the comprehensive car insurance type are more than just the simple coverage, it includes:

  • Accident towing
  • Windscreen damage
  • Personal accident cover (optional)

The high-level benefits are the reason that this type of car insurance is considered more reliable. Moreover, cars can be expensive in Singapore, therefore this Insurance policy can save you from a lot of trouble.

Are you still wondering; which type of car insurance is best for you?

You have just bought your first car and it is not going to be your last one. So, make sure that you select the type of insurance that saves for your future too and benefits your present at the same time.

Why is insurance expensive for new drivers?

This is an important factor, especially for First-time insurance buyers. The reason for this is that insurance companies usually look into the history of driving experience especially if you have maintained a record of avoiding any felony etc.

What are the latest insurance costs values for the drivers?

This is a common question, but do you know how much it costs? Let’s see the latest car insurance costs in 2019.

Well, it varies from company to company, but roughly the cost maybe anything around $862 (Annual premium) or above. It basically fluctuates with the market rate, so nothing is hard and fast here. However, if you have considered worldwide data or simply compare the rate with New York, you will find that Singapore is still offering cheap insurance policies.

The analyst Anastassia Evlanova said in a report:

“The average Singaporean driver can expect to spend between 2-4% of their annual salary on car insurance (or about S$880-S$1,760 per month),” analyst

However, the New Yorkers are said to spend 4.8% of their annual salary on not only first-time driver insurance but almost every car insurance.

Tips for purchasing first car insurance

You have all the right to ask any questions while you are purchasing car insurance.

So, here are some of the common factors to consider before jumping right into the purchasing phase…

 So, before someone tries to fool you, understand a few common terms for it.

·       Know the common terms

Excess

Excess is referred to as the first part of the payment. And the rest will be covered by the insurer. Also, if you choose the higher excess you will be paying a lower premium.

No-claim discount

If you are a person with no record of accidents, this is your treat. Some policies offer claim-free discount offers for being a responsible citizen. So, if you are maintaining the record, you can get the discount on your premium with the time. Now, it is better to get all the details about it from your insurer.

·       Have a Model in mind

If you are thinking about the car and first-time car owner insurance, you might need to keep the model in mind. It is necessary as the insurers can show you the quotes accordingly. It will benefit you in managing and planning your budget accordingly.

·       Compare different quotes

It is easy to get quotes from various companies simply through calling or reaching them through their website. If you are buying your first car insurance, doing a thorough research will help. Keep in mind that cheapest quote may not always be the best option – make sure that the insurance company you choose is a well-established and a reputed brand in the market.

·       Understand the types and your needs

If you are a first-time buyer of car insurance, you must know that you need to understand the different types of insurance and they should be according to your needs.

·       Ask a company agent to set up a policy

If you have picked up the car to buy, you can get the car plate number. Ask an agent to set up the policy and you can go with the number to a dealership. 

Quick checklist or criteria to choose the best insurance for first-time drivers

If you are getting car insurance for the first time, you are still far away from the whole lot of information you need for it… So, before making a final decision, have quick look at the criteria of choosing the insurance company just to be sure and safe.

  • Learn about independent agents and insurance companies.
  • Check out for the history and reputation of it.
  • Understand the financial strength of the company
  • Check out all the coverage plans and their benefits
  • Ask for the available discounts
  • Learn about the accidents counted as damages such as personal injury, car damage, passengers, major accidents, etc.
  • Learn the ways you can submit a claim.

How to reduce insurance cost

Can you reduce the first-time insurance cost? Well, before we answer this question, let’s have a look at the factors that might affect the price.

  • Type of car
  • Age
  • Gender
  • Driving Experience
  • Car insurance Type

Now, how you can reduce the cost to your best budget interests:

  • Go for the best rates and benefits. You can buy car insurance through a dealership. This way you can save a penalty fee. Study the terms and benefits of each policy before any final decision.
  • Go for a private settlement for minor accidents. Try to settle the matter mutually.
  • NCD can reduce your premium. So, try to maintain the record for no accidents and you can get a discount on every renewal. By the 6th year, you can have a 50% discount on your insurance premium.

Bottom Line

Ultimately, if you are a first-time car insurance buyer, you need to keep a lot of things in mind. So, do not just jump into any plan. Plan every step carefully and ensure that you are going in the right direction before giving away your hard-earned money to anyone.

Now, if you want to be saved from all the trouble and land directly to the best insurance for first-time car owners, get in touch with DirectAsia’s car insurance through an online form available on our website. Yet, if you prefer to speak to an agent call us at 6665-5555. Our experts are super amazing in getting you through the process making it a seamless effort on your part by offering top-class policies of car insurance for first-time drivers.

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