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Feeling ripped off on your car insurance? Read on.



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In a bid to find out if Singaporeans are being ripped off when it comes to car insurance, sgcarmart.com did their own research and comparison of motor insurance companies.

They wanted to establish whether or not Singapore had a clear winner when it came to the cheapest car insurer and of course to find out who had the most expensive premiums. They were keen to find out too, just how much the driver’s age affected the price of a comprehensive car insurance quote.

Here’s what they did.

For their study they created four different driver profiles insuring the same car make and model, a 2016 Honda Vezel Hybrid.  

All started driving at 18-years old.

Four driver profiles:

4 Driver Profiles

From there, the team at sgcarmart pulled some insurance quotes for these driver profiles.

All quotes were for the same types of comprehensive car insurance coverage, with common add-ons and benefits such as:

- Being able to go to any workshop of your choice for repairs
- Getting transport allowance while your vehicle is under repair
- A low excess (the amount you will be required to pay when you make a claim on your policy) of around $500.

They also included the No Claims Discount (NCD) in their quotes.

Here’s how they got on:

Disclaimer: The results are based on the assumption that coverage from each insurer is similar based only on the above criteria. The study does not take into account that policies could differ in terms of other criteria such as cap on self-injury claims, who is insured to drive, etc.

Driver 1 Profile

Driver 2 Profile

 Driver 3 Profile

Driver 4 Profile

So what do the results tell us?

Sgcarmart concluded that insurers adopt a 'risk factor' rating system which takes into account the insured driver's age, driving experience and claims history (if you've made a claim before, it would affect your NCD). They showed that insurance premiums became cheaper as the 'risk factor' decreased.

Here are the findings from their research and here is what sgcarmart had to say about those results:

1. On average, Budget Direct Insurance is the cheapest

Summing up the insurance premiums across all the four profiles, the cheapest insurer on average is Budget Direct Insurance at $1,358.

2.    Regardless of your profile, it makes sense to do a comparison.

We calculated what was the difference between the cheapest and most expensive insurer for each individual profile. For each profile, the price variance is always more than 40%. So always compare, because you'll never know; you could be saving 40% by switching!

Just-started-work Joe - 48%
Just-married Joe - 44%
Just-had-a-kid Joe - 50%
Old-bird Joe - 56%

3.    There is no one single cheapest insurer.

Budget Direct Insurance Comprehensive coverage had a rather pricey quote for Just-Started-work Joe, but as the profiles increased in age, driving experience and a stellar claim history, they were listed as the cheapest as seen in Just-married Joe, Just-had-a-kid Joe and Old-bird Joe profiles.

At Budget Direct Insurance we believe it pays to compare your car insurance quotes so you can get the best deal for your profile. And not forgetting women drivers! We offer one of the most affordable car insurance plans for women too.

The full sgcarmart report is here.

 

Pay less for award-winning car insurance and first-class customer service with Budget Direct Insurance.

If your current renewal quote is cheaper than ours, we’ll give you $100, even if you don’t buy our insurance. It’s a win-win.

Get a quote online today!

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