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How Do You Get Cheaper Car Insurance?

Car insurance schemes work in a way that you cannot always control. Indicators such as your age, the age of your car, and driving experience determine insurance premiums. However, how do you get cheaper car insurance in the face of all this?

Car insurance is compulsory in Singapore. It is important to note that there are various insurance plans for different vehicles.

Each and every insurer in Singapore maintains unique premiums and plans that suit their customers’ needs. Further, each plan targets drivers of different ages, sex, and driving experience. In addition, the calculation of premiums also focus on the type of car one drives as well as the car’s age.

There are various insurers with unique offerings in the country. However, you will have to know some tricks before deciding which plan best suits your needs and finances.

Shop Around for the Cheapest Quotes

This is the oldest trick in the book. Particularly, shopping around exposes you to various insurance quotes which may work in your favour.

For instance, Singapore has over eight insurance companies that provide relatively affordable plans. Interestingly, the average annual premiums for an experienced and low risk driver amount to about S$753.

There are available options like Budget Direct Comprehensive, MSIG MotorMax, Sompo ExcelDrive Focus and others. All these, and a few others provide insurance that is cheap and relatively comprehensive.

Living in High-Traffic Area Codes 

Bear in mind that the moment you present yourself asking for cover, your insurer will go over your background information. The aim is to establish relevant information such as your residence and the traffic in the area.

Normally, the assumption is that area codes with heavy traffic are likely to experience accidents. As such, the insurer estimates that you are more likely to file a claim. Subsequently, they will charge you high premiums to reflect your high-risk profile.

Limit your Mileage

Once you have secured your car, limit your mileage where possible. Oftentimes, insurers use the car’s mileage to determine its age.

Further, it is imperative to give an accurate reading of the mileage when shopping for quotes. This helps to avoid situations where your insurer can fine you with false representation of information. As a result, you could end up incurring more costs in insurance premiums.

Ensure the Security of your Car

The security of your car largely determines how much you pay in insurance premiums. Therefore, it is imperative that you ensure your car is safe at all points of time.

Interestingly, there are various security solutions which might help. For instance, fitting your car with alarm devices that will alert you if your car is in danger or being compromised.

Further, you should always make sure that your car is properly locked when you are not in the vicinity. This will not only prevent situations like theft but also cases of someone entering the car and causing damage.

Additionally, you could fit your car with vehicle immobilisers, steering wheel locks, and tracking devices. Ultimately, the aim is to ensure that your vehicle is secure.

Build Up your No Claims Discount (NCD) Bonus

Insurers deem customers who make frequent claims as being high-risk. As a result, they charge higher premiums to hedge against the likelihood of frequent claims.

Interestingly, insurers keep a no claims bonus discount which rewards customers who make fewer claims. Meaning that the fewer claims you make, the more likely you are to earn cheaper rates for your coverage.

Sim Kwang Meng

Chief Operating Officer

Mr. Sim has more than 40 years’ of experience in General Insurance. He joined Pana Harrison since 2003, and specialised in Property and Casualty. Prior joining Pana Harrison, he was AGM for Commercial Union Assurance Pte Ltd.