Blog / Car Insurance
Safe drivers pay less for motor insurance. But how much can you really save?
Sitting behind the wheel of a car the number one priority is to drive safely and with focus - to protect your own life and the lives of those around you. However all too often drivers allow themselves to be distracted by phone calls and messages and are often tempted to drive aggressively as they are running late to an appointment or on the school run. In the worst case scenario the consequences of distracted and aggressive driving can prove fatal; but, they can also prove costly in other ways such as tickets and fines, higher workshop repair costs and running costs and higher motor insurance premiums.
Read on to discover how much money you stand to save by being a safe driver, according to the latest statistics by consumer researchers ValueChampion.
Car Insurance companies reward safe drivers
Some of the most direct and clearly-evidenced savings for safe drivers are from your car insurer. For every year you don’t have an at-fault claim your No Claims Discount (NCD) should increase, to a maximum of 50% after five years. This can easily save you several hundred dollars a year. In addition, if you have not received any demerit points on your driving record for the past 3 years a further 5% discount can also be available.
The latest research shows this is especially good news for motorists with Budget Direct Insurance who stand to pay the lowest average annual premium of S$1,153. This premium price is more than halved to S$496 for motorists with a 50% NCD.
A spokesperson for Budget Direct Insurance, said: "You can see from the graph that Budget Direct insurance is already one of the cheapest for car insurance and our premiums are more than halved if you have a 50% No Claims Discount. This isn't the case with some other insurers. This latest research clearly shows that being a safe driver means you pay a lot less for car insurance with Budget Direct Insurance.”
Safer drivers spend less on maintenance and repairs:
Avoid more frequent trips to the workshop, replacement of brake pads, checks to transmission and servicing for instance by not driving aggressively. Furthermore, distracted drivers are more likely to be involved in small collisions or fender bender incidents. While not as serious as car accidents, the cost of these is not insignificant. Damage to front or rear bumpers can cost upwards of S$1,200 most of which you may be responsible for due to your motor insurance excess.
Save on petrol costs:
Avoid the tendency to speed and stand to gain greater fuel consumption and save dollars at the petrol pump. Fuel consumption is lowest at a fairly constant speed of 45km/hr and 75km/hr. If you drive more erratically, shifting speeds up and down quickly and braking frequently fuel consumption can drop by as much as 20-30%. For an average driver in Singapore clocking up 16,700 km/year, a smoother driving style within the proper speed limits could save S$500 or more per year in petrol costs each year!
Avoid Traffic Tickets:
Be aware of the traffic laws to avoid costly fines. Tickets for driving over the speed limit, failing to signal properly, failing to give way or hindering the flow of traffic can quickly pile up for drivers who are not paying attention to the road. Inexperienced drivers should read and memorise what constitute violations, such as when to give way at a roundabout, parking incorrectly or slowing down traffic in the right lane.
Traffic fines are not only costly in themselves, especially if you do not settle promptly, but can also impact your insurance premiums due to the loss of demerit-free discounts. Finally, you may incur legal fees if the violation was very serious and requires a court appearance. For example drink driving, driving significantly over the speed limit or talking on cell phones.
Defensive driving techniques:
Do yourself, other road users and your bank balance a favour by driving safely and ensuring you:
*banish distractions such as cell phones and car accessories
*always play close attention to the road
*watch out for blind spots in mirrors and turn your head
*never drink and drive