Singapore is a bustling metropolis with a vibrant economy and a diverse population. The city-state is also home to a thriving car industry, with many dealerships and service centres located across the island.
If you’re looking to insure your vehicle in Singapore, you’ll need to find an insurer that offers coverage in the city-state. There are a few things to consider when choosing car insurance in Singapore.
Is Car Insurance Mandatory In Singapore?
Car insurance is a mandatory requirement in Singapore. Your vehicle must be insured when it is used on public roads. All drivers must have a valid car insurance policy that covers them for at least third-party liability to drive on the road. If you are caught driving without car insurance, you may be fined or jailed.
Telling Car Insurers Apart
There are a variety of car insurance plans available in Singapore, and it is essential to compare them carefully before choosing one that best suits your needs. Some things to consider when buying car insurance include:
· The type of coverage you need
· Your budget
· The excess you are willing to pay
· The insurer’s claims history
· The insurer’s reviews and customer satisfaction rate
It’s also important to read the fine print of your policy carefully to know the exclusions and limitations of your coverage.
Factors That Determine Your Car Insurance Premium
If you are looking for car insurance in Singapore, you should keep a few things in mind. Here are several factors that affect how much you pay for car insurance:
The type of vehicle you drive, car’s age, and car usage: Sports cars and luxury vehicles tend to be more expensive to insure than economy cars. Older cars are usually more costly to insure than newer cars because they are more likely to need repairs. Vehicles that are used for commercial purposes (e.g., taxi or Grab cars) typically cost more to insure than those that are used for personal use only.
Your driving history: Drivers with accidents or speeding tickets on their record usually pay more for insurance.
Your age and gender: Young, male drivers, are typically seen as higher risk and pay higher premiums.
Occupation: Some occupations are seen as higher risk than others. For example, security officers and lawyers generally pay more for insurance than teachers or office workers.
Driving experience: More experienced drivers tend to pay less for insurance than those new to driving.
Claims history and No Claims Discount (NCD): Drivers with a history of making claims or those who have not built up any NCD usually pay more for their insurance.
Certificate of Merit (COM) discount: Drivers with a COM can get a discount on their insurance.
Type of coverage you need: If you’re financing or leasing your vehicle, your lender will likely require you to carry comprehensive and collision coverage. But even if you own your car outright, these types of coverage can protect you from costly repairs or replacements if your vehicle is damaged in an accident.
Now that you know all car insurance policies in Singapore aren’t made equal, it’s vital to find a policy that meets your needs. Remember to compare a variety of plans and read the fine print carefully before making a decision.