Buying a car insurance policy is a necessary expense in Singapore if you own a car, but that doesn’t mean you should settle for just anything. We know that driving and maintaining a car insurance policy isn’t the most affordable thing, and users often times make mistakes when purchasing a policy.
As a policyholder, you have to pay premiums on time to keep your policy active. These premiums can add up quickly, and if you’re like most people, you need to stick with a budget. Here are some tips to help you get the cheapest car insurance without sacrificing quality.
Shop around before you sign
When your current policy expires, don’t just robotically auto-renew it. Instead, set aside some time to shop around with other providers . It may surprise you to learn that the price of motor insurance in Singapore can vary significantly between companies. Get a few quotes to make sure you’re paying a fair amount. A good rule of thumb is to compare the rates of at least three different insurance companies.
If you do find a better rate elsewhere, do some more research before you sign up, especially if you don’t know anything about the company. Make sure the insurance company provides its customers with a high level of care. After all, saving money doesn’t help if you can’t rely on your insurance provider to take care of you after an accident.
Ask about discounts
What does your driving record look like? Insurance companies prefer to do business with safe drivers. If you don’t have any violations or accidents on your record within the last five years, you may qualify for money-saving discounts. Rates also change if you have more driving experience; that’s why new drivers pay the most for insurance. Ask your insurance company if you can take advantage of any safe driver benefits.
If you don’t currently qualify for safe driver discounts, then it may be time to change the way you act behind the wheel. Make sure you always follow the rules of the road whenever you are driving a motor vehicle. Driving within the speed limit and watching out for other drivers may make you less risky in the eyes of an insurance provider.
Avoid any vehicle modifications
Many drivers don’t realise the impact that vehicle modifications can have on your car insurance rates, be it brand new or a second-hand car. Certain modifications may lead to more expensive rates because your vehicle now costs more to replace. Some bodywork and motor upgrades may boost the performance of your car, but while that sounds great to the driver, it makes covering you riskier for insurance providers.
Too many drivers mistakenly believe that insurance companies don’t care about LTA-approved modifications. While that may be the case for some policyholders, it’s not true in all scenarios. Even changing out the rims on your tyres may result in a premium increase. Before you invest in those new wheels or body configurations, read the fine print on your motor insurance policy. Better yet, call your provider to see if modifying your car will increase your premiums.
Increase your excess
When you sign up for an insurance policy, you’ll be asked how much excess you prefer–think about this carefully. The rule of thumb is, the higher your excess, the lower your premiums. If you want to save money right away, raise your excess to the highest level with which you’re comfortable. Most safe drivers don’t mind having a higher excess, but if you frequently file claims, it may not be the right choice.
What is excess? When you get into an accident or file a claim, the excess is the amount you’ll pay out of pocket before the insurance pays anything. But if you can’t afford to foot a hefty bill after an unexpected fender bender, then having a high excess may be detrimental. However, if you can put aside the excess for a rainy day, then you know you’ll have the cash on hand if you ever need to use it.
Don’t pay for coverage you don’t need
The more expensive your insurance policy, the more perks it probably has. If you have a luxury vehicle, you probably want a comprehensive policy that protects your car in the event of an accident. However, if you drive an older vehicle, it may make more sense to buy a TPO policy. The low value of an older vehicle may not justify the higher premiums of a comprehensive plan.
Motor Insurance Singapore
If you want the cheapest car insurance, it’s advisable to choose a company that offers customisable policies! At DirectAsia, we work with each customer to come up with a custom insurance plan that works for their budget and needs. So get in touch with us for a quote on your next car insurance policy.