SINGAPORE, June 19, 2018 /PRNewswire/ -- An independent price comparison study of Singapore's leading insurers found that motorists with a 50% NCD stood to make the biggest premium savings with Budget Direct Insurance.
Having a No Claim Discount (NCD) is one of the best ways an insurer can assess how safe a driver is. It is a count for the number of years drivers haven't made a claim on their car insurance policy. For every year a motorist doesn't have an at-fault claim, their NCD should increase to a maximum of 50% after five years. The amount this is worth varies depending on the insurer but it can easily save drivers several hundred dollars a year on their premium.
But, how much exactly do Singaporean motorists save with an NCD of 50%? That was the question behind the study by independent consumer researchers, ValueChampion, who looked at 10 leading insurance companies, including FWD, Aviva and DirectAsia.
ValueChampion carried out a direct comparison of premiums for a 45-year-old male driver of a Toyota Corolla Altis Sedan without a No Claim Discount (NCD), and compared it against the premium for a driver with a similar profile but who enjoyed a 50% NCD.
The findings showed that motorists with a 50% NCD made significant savings with most insurance companies, and motorists who chose Budget Direct Insurance stood to make the biggest savings, with their premium prices being more than halved.
The direct insurer has one of the lowest average car insurance premiums on the market at $1,153 per year for a 45-year-old male driver of a Toyota Corolla. This premium price is more than halved to $496 for a driver with a similar profile but who enjoys a 50% NCD. That amounts to savings of around $657 on an annual premium for such a driver.
Simon Birch, CEO of Budget Direct Insurance, says that this is part of their long-term strategy to attract Singapore's safest drivers. And by doing so "Budget Direct Insurance will continue to keep premium prices down without cutting corners on cover or service."
Simon Birch, said: "The independent study shows Budget Direct Insurance as one of the cheapest for car insurance and our premiums for drivers may be more than halved if they have a 50% NCD. Drivers who switch their insurer can transfer their NCD and enjoy bigger discounts with Budget Direct Insurance."
He added, "Our aim is to attract Singapore's safest drivers. That way good drivers don't have to subsidise bad drivers; this means lower premiums for all. It's a win-win."
Meanwhile, Budget Direct Insurance is so certain that its premium price for car insurance is one of the cheapest in Singapore that it is challenging drivers to beat it. Motorists with a cheaper renewal quote from their current insurer for the same level of cover will be rewarded with $100 even if they don't buy.*
*Terms and conditions apply