11 Enjoyable (and Lesser Identified) Automotive Insurance Details For Your Automotive Homeowners – AsiaOne
Read this before you buy your dream car. Some of these facts can help you decide on better auto insurance or even "hack" your way to a cheaper premium.
For all budding car owners, in addition to buying your dream car, you need to compare the best auto insurances.
To own and drive a motor vehicle in Singapore, you must have car insurance. This not only protects you from potential financial damage from accidents, but also protects you and your passengers for medical costs and more.
Here are 11 Lesser Known Facts About Car Insurance You Need To Know Before Choosing Car Insurance.
1. You can get a discount for a clean driving report
You can get a discount on your clean driving report when you get the Certificate of Merit (COM) – a certificate of safe driving issued by the traffic police for three years. The COM sees you as a low risk driver and is an incentive for drivers to drive safely. This COM is a discount on your No Claims Discount (NCD).
To get a COM, you must have been free of traffic violations for at least three years. This means that in the three years before you take out your car insurance, you will not be able to accumulate minus points to be eligible for a COM.
However, for some, it might be easier said than done to be deficient. For example, if you drive 1 to 20 km / h above the speed limit, you justify four disadvantages. On the positive side, the collected deficiency points will be waived if you do not collect additional deficiency points 12 months after your last violation.
If your driving record isn't pristine, don't worry, you can still enjoy your NCD if you haven't made a claim in the last year.
2. No entitlement discount (NCD) is transferable
NCD refers to the discount you enjoy when you are not claiming your auto insurance. This can be between 10 and 50 percent, depending on how many claims you make during the insurance period.
Your NCD is tied to your name and is therefore transferable. For example, if you have a 50 percent NCD and plan to change your car insurance plan, you can ask your nearest car insurance company to transfer your existing NCD to the next policy if it is within the NCD validity period.
However, your NCD is not transferable to your friends or family – it is only transferable to plans under your name. There may be exceptions such as B. the transferability of your NCD to your spouse, but this is subject to the insurer.
3. Your NCD will expire if you do not take out auto insurance for 1 to 2 years
Unfortunately, your NCD has an "expiration date". After your car insurance has ended, the NCD you have acquired is valid for the next one to two years (depending on the insurer) and then drops back to 0 percent.
If you decide to take a break from driving and not get a car, it means that after your NCD expires you will not get discounts on your next auto insurance.
As a car owner, you must take out your next car insurance within this period in order to receive your NCD and keep your car insurance premiums down. Alternatively, you can always opt for car sharing, ride-hailing services or public transport instead of owning your own car.
4. You can keep your NCD even if you make a claim
Just add an NCD protector to your car insurance as a driver. The NCD protector generally applies to policies with at least 30 percent NCD and protects your NCD from being reduced to 0 percent in the event of damage.
Some auto insurers may even automatically enjoy free NCD coverage if you've enjoyed 50 percent NCD in the past few years. Unlike your NCD, your NCD protector is not transferable from one insurer to another.
5. Car insurance costs the most in the first few years
In contrast to other types of insurance such as life insurance and life insurance, the costs of which increase with age, the premiums of your car insurance can get cheaper as you get older. This is especially true if you are staying away from accidents and not making claims on your car insurance in order to enjoy higher NCD.
The first time you own a car, you don't have an NCD to enjoy regardless of how well you've driven your family or rental car before.
Because of the relative inexperience compared to those who have been on the road for decades, premiums and deductibles are typically higher for young drivers. If you are new to driving, while it is more expensive, it is best to have a comprehensive plan (within your budget) in place to cover all possible damage in the event of an accident.
ALSO READ: No Claims Discount (NCD) Protector: Should You Buy This Auto Insurance Driver?
6. Your marital status can affect your premiums
Yes, whether you are married or not can affect the premiums you pay for your car insurance. Aside from your marital status, your job (and how often you use your vehicle) can also be another determining factor.
Other factors that will determine your auto insurance premiums are your age, gender, years of driving experience, car model, and more.
7. You can pay premiums in installments
Auto insurance premiums can range from $ 400 to $ 3,000 and up – pretty hefty to be paid out as a one-time lump sum.
As with other insurances, you can also pay for your car insurance in installments. These installments can also be debited from your credit card. This gives you the opportunity to collect miles, cashback or points. However, you need to consider which of the few credit cards will reward you for insurance payments.
8. Get a replacement car if your car is totaled
Some insurers, such as MSIG, will provide a brand new replacement car in the event your car is irreparable after an accident. However, additional conditions may apply, e.g. B. that the original car is less than 12 months old or is not eligible if the car is stolen.
However, this does not mean that you will get an immediate upgrade (or downgrade). The insurer will replace your vehicle with a new vehicle of the same make, model and engine power.
Instead, if your car is repairable, consider whether your tariff includes a daily flat-rate transportation charge for each day your car is repaired.
9. Modified cars can still be insured
Change your car, change the premiums. Whether it is a roof rack, an engine change, a sunroof or a turbocharger on your vehicle, it can still be insured – but you can count on increased premiums. If you are planning to make changes to your vehicle, it is best to first check that it complies with the regulations of the Land Transport Authority (LTA).
You can also contact your preferred insurer or the SingSaver insurance broker team at Insurance_enquiry@singsaver.com.sg or call 31382648 to find out more about their converted car plans and premiums.
10. It costs money to transfer ownership of a car
Aside from auto insurance, here are two other interesting facts for aspiring car owners.
Just like how it costs $ 10 to apply for a Build-To-Order Apartment (BTO) and to apply for an initial public offering (IPO) in Singapore costs $ 2, even if you don't get any shares, you also have to pay an administration fee for pay the transfer of car ownership.
While it's just a click of a button after filling in the details online, it will cost you money to transfer ownership of a vehicle. This value can vary from vehicle to vehicle.
11. Bidding on your preferred license plate starts at $ 1,000
“8888”, “5555”, “1234” could be popular Singapore number plate numbers (also known as license plates).
If you have a preferred license plate, you can place a bid on LTA. Since the minimum bid amount is S $ 1,000 (incremented in multiples of S $ 1), it will cost you at least S $ 1,000 to get a license plate of your choice. If you are determined to get a specific license plate number, the upper limit of the allowable bid is unlimited.
The call for tenders takes place weekly and all available numbers are published on the website. No, you cannot simply provide a number of your choice, you must choose from the available ones.
This could be a reminder that you have to pay extra for a "nice" cell phone number and how some units (like those ending in 8) are able to fetch a higher price or fill up faster than others.
Please note that there is a non-refundable service charge of $ 10 for every bid you submit. This fee also applies if you fail to secure your preferred license plate.
ALSO READ: Is It Worth Buying Cheap Auto Insurance In Singapore?
So what should your car insurance cover?
Your car insurance coverage depends on the type of plan you choose. Here is an overview of the three main types available:
- Third Party Only: The simplest (and cheapest) type of auto insurance that covers injury or death to a third party, and damage to someone else's property. This does not cover the damage to your own vehicle.
- Third Party Fire and Theft: In addition to the Third Party Only car insurance offers, this also covers fire damage or theft of your vehicle. Again, the costs for other damage to your own vehicle are not covered.
- Comprehensive: The most comprehensive plan type, a comprehensive plan that includes what covers third party fire and theft, plus coverage for the repairs or replacements required in the event of accidental damage to your vehicle. It can also cover accident and medical expenses.
You will also need to compare other perks and coverage conditions from the insurer, such as: B. whether breakdown assistance is provided around the clock, whether there is a daily transport allowance and the deductible applies.
This article was first published on SingSaver.com.sg.