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How easy is it to switch your car insurer in Singapore? Find out
Aiyoh… you discover you’re over-paying for your current car insurance policy and you’d like to get more bang for your buck. Should you consider scouting around for a new car insurer? Read on…
To begin with, determine how much you are willing to pay and what features you truly need. The key word here is ‘need…’ do you really need all those additional extras that you’re paying for in that very expensive bundle?
See if you can get a better deal from your current insurer. Give them a chance to prove themselves. If not, it may be time to switch insurers.
Check the terms and conditions concerning the cancellation of your policy. This is the boring bit that most of us shy away from. But once you have this out of the way, the rest is a breeze.
Cancelling your policy
Once you’ve made up your mind to cancel your current policy, you may want to do so at the end of your renewal period or payment cycle.
Find out if there are any cancellation penalties if you cancel your policy midway. While it is your right to switch auto-insurance companies whenever you like, keep in mind that insurance companies can charge penalties for early cancellation depending on the circumstances.
Inform your insurer of your wish to cancel the policy. Don’t just stop paying premiums, notify them officially, either in writing or with a phone call. You should preferably get a written confirmation from them of your cancellation.
Choose a date from which your policy will become inactive. Pick one towards the end of the payment cycle to avoid the need for refunds if possible.
Finding and signing up for a new policy
Check out other insurers out there. Find a policy that meets your needs. For instance, if you’re a safe driver, does the insurer give you a good deal if you have a No Claims Discount? Read more on discounts for NCD here.
Don’t forget to look into the company’s reputation for customer service and claims handling. Customer reviews are important. In Singapore where word gets around like wildfire it’s easier to find out if an insurer has a good reputation. At Budget Direct Insurance for instance, all reviews are unfiltered and unedited via a third party called Feefo. That way you know you’re reading real reviews by real people. Comments on the insurer’s Facebook page are also a good indication of the insurer’s reputation, especially when it comes to claims. Read more about customer reviews.
Make sure your new policy becomes active the day your old policy expires, or several days before. This is especially important if you have a car loan as you will usually be required to furnish a certificate of insurance. Furthermore, a lapse in car insurance could result in financial losses for you should you be involved in a car accident. It could also lead insurance companies to charge higher premiums in the future.