Motor insurance is mandatory in almost all countries like Singapore. However, owning a car entails more than just purchasing the vehicle. Other expenditures associated with ownership include maintenance, taxes, and most importantly, insurance payments. Before driving, all car owners should ensure they have adequate insurance coverage. Nevertheless, many people merely go for the insurance offered to them.
How to choose the best car insurance?
You cannot have a one-size-fits-all approach to insurance. Here are some points to consider when choosing a car insurance policy for your needs.
1. Have a look at the insurance excess
Accidents occur, but it is frustrating when the accident is not your fault, and your insurer requires you to pay the excess. Excess is the amount you agreed to pay the insurance company when making a claim.
2. Purchasing car insurance
Search for a policy that eliminates the excess. If not removed, it should waive off the excess, for you need not pay for the mistakes of others.
3. Compare no-claim discounts
A no-claim discount (NCD), which insurance companies offer to customers who do not file a claim for a specified period, can lead to significant reductions in premiums. However, if you are at fault in an accident and file a claim, your NCD may drop by 10 percent, which is the lowest offered by a few insurance companies in Singapore.
But don’t worry; you can add an NCD protector to your insurance to protect your NCD for a single claim, or you can look into policies that lower your NCD by a smaller proportion. You can avoid paying a high penalty for a one-time error by doing so.
4. Consider buying a plan that covers old cars
A Certificate of Entitlement (COE) permits you to purchase and run a vehicle for ten years. You can deregister your vehicle or renew the COE after this period. However, most vehicle insurance contracts include coverage that expires after ten years.
If you want to save money by renewing your COE rather than purchasing a new automobile, seek coverage that covers older vehicles. Shopping for car insurance needs research to ensure that you obtain the best rate for your vehicle and profile.
Know more about buying car insurance
You can have one of the best car insurance plans with a premier insurance provider that covers all basis. It gives the benefit of waiving off excess if the policyholder is not at fault and only a 10 percent reduction in NCD if the customer is at fault.
For instance, DBS offers car insurance with the following benefits:
- DBS DriveShield is an all-inclusive plan that covers new electric vehicles, older vehicles up to 15 years old, and everything in between.
- Breakdown assistance in an emergency
- When your automobile breaks down, you can get free roadside assistance.
- Loan guardian
- Automobile repairs
- Replacement of windshields
- Windscreen (glass) replacement cost if done by approved repairers.
- The allowable number of windscreen claims
- Excessive windscreen.
- Damage caused by an accident, fire, or theft
- Coverage for full market value, including the COE, factory-installed automobile accessories, and audio equipment
Optional Extra Benefits
- Any extension of the workshop
- Send your vehicle to your selected workshop for repairs.
- Lock and key replacement
- The cost to replace the damaged locks, transmitter, central locking interface, and any affected sections of the car’s alarm or immobilizer if your ignition keys are lost or stolen.
- Coverage for loss of use
- When your automobile is in the shop, the insurance will provide you with a substitute (1.6L model) (up to 10 days).
- NCD guardian
- If only one claim is submitted, your NCD remains intact (by yourself or a third party).
- Exemption of young and/or unskilled driver excess for the approved driver who is 24 years old or younger and/or has held a valid driver’s license for less than two years.
The applicant must be between the ages of 21 and 70; must live in Singapore for at least 183 days per year and have a valid NRIC(s) or FIN(s); must have at least one year of experience driving; have not made more than two claims in the previous three years; must be the ability to register owner of the car to be insured; must not have previously been refused any auto insurance application for any reason. The insured vehicle must be older than 15 years.
Tips For Choosing The Best Car Insurance for You
If you’re looking for car insurance, there are a few things to keep in mind. First, make sure you’re getting the best coverage for your needs. Second, consider what factors are important to you when choosing car insurance. Third, take the time to compare different policies and rates to find the best deal for you.
To choose the right car insurance policy, first determine your needs. Do you want liability insurance? Collision coverage? Car rental coverage? Each type of coverage has its own set of benefits and drawbacks. Consider what will help protect you if something happens while driving your vehicle and decide which features are most important to you.
Next, try to figure out how much risk you’re comfortable taking on. How many accidents have you been in? How much money have you lost as a result of crashes? These factors can help you determine how much liability and collision coverage is necessary for your situation. Remember that higher limits don’t always mean better coverage – it’s important to read the fine print and understand exactly what each policy covers.
Finally, compare rates and policies from different providers before settling on one. Just because one company is more expensive than another doesn’t mean their policies are necessarily better – it’s important to do your research so that you know exactly what’s included in each policy and how much it will cost.
A car insurance policy provides complete peace of mind. You can rest assured that you will have no financial troubles if there is loss or damage to your vehicle or third party.