Blog / Car Insurance
Easy hacks to help you save on car insurance
While you may not have control over many of the costs involved in owning a car such as the Certificate of Entitlement, ERP costs and so forth, you do have some control over how much to spend on your car insurance.
Cost-cutting methods
A cheaper plan
There are several types of plans available for you to choose from depending on your needs such as: Third Party Only Plans; Third Party, Fire and Theft Plans; and Comprehensive.
Each type of plan offers a different level of coverage.
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These are the cheapest plans. They cover you for liability against a third party, that is anybody that is not you. They will cover death or injury that occurs to the third party as a result of the accident, as well as any damage done to a third party’s property.
However, you will have to cover the costs of personal injuries and damage to your vehicle that occur as a result of an accident.
Third party, fire and theft plan
This is the second cheapest form of car insurance. In addition to covering you for liability against a third party, it covers you for accidental damage to your car due to fire or theft.
However, do note that it does not cover you for loss or damage to your vehicle, windscreen damage or medical expenses.
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These have the widest coverage and are the most costly. Most Singapore car owners tend to go for this type of plan. This is because car loans typically require you to have a comprehensive car insurance plan. Most of those intending to buy a car here tend tend to take up a car loan given the exorbitant costs of owning a car.
Such plans include coverage for loss or damage to your vehicle up to the market value of your car at the time of the crash, coverage for medical expenses, personal accident benefits, windscreen damage and towing.
Safer drivers pay less. No claim discount (NCD)
The No claim discount helps lower your car insurance premium. You earn a 10% discount for every year you drive without an own damage claim for up to a cap of five years.
However, if you get into an own damage accident, you could end up having your NCD reduced. A number of insurers do offer an NCD protector feature that will safeguard your NCD should you make a claim.
Raising the excess on your policy will lower the amount you have to pay on your premium. But it does mean that you will have to fork out higher expenses should you get into an accident.
Loyalty discounts and perks
Some insurers provide loyalty discounts if you have maintained a policy with them for a few years. Some may also include perks such as discounts on food, entertainment and shopping.
Other perks include:
Discounts for going paperless. That means you receive your car insurance policy via email and not on a hard copy in the post.
Discounts for driving in Singapore only which means you’re not covered if you cross the causeway into Malaysia.
Restrictions on who will drive your car. Some insurers offer driver plans which means you can name and authorise only certain people to drive your vehicle. This restriction means you can pay less for your car insurance.
Registering a car as an off-peak vehicle or weekend car can lead to substantial Certificate of Entitlement (COE) rebates and road tax discounts.
Do note, however, that they come with driving restrictions.
Low mileage car insurance
If you clock up very few miles on your car then you may well be able to get a discount on your car insurance. The less you drive the less of a risk you’re deemed to be.
Telematics car-based insurance scheme
This tracks your driving behaviour in real time, taking account of your speed, drive time and mileage.
Provided you are a safe driver, this can be a good way to save extra money on your insurance.
Certificate of merit
If you are a safe driver, you could qualify for a Certificate of Merit (COM) from the Singapore Traffic Police, which will entitle you to a 5% discount on your car insurance premium from participating insurers on top of your NCD.
To apply for a COM, you have to maintain a demerit-point-free driving record for three years in a row.
Married motorists are generally charged less than singles for their car insurance. If you’re married you’re considered to be more settled, stable and therefore less risky.
So, the next time you need to buy car insurance, take the time to consider the savings you can derive from it.
