Importance of your Singapore Car Insurance Policy

Singapore Car Insurance Policy

You have managed to buy a car, and you want to drive it on the road the local authority in Singapore has made it compulsory for one to have annual car insurance. After you have purchased a new car you may not have an insurance company that you know; here you will be forced to choose the one that your car dealer suggests.

It can be good if the insurance is affordable. As seen in many cases many residents of Singapore will not be bothered by the insurance as they only look at how cheap it is. What they forget is that they can face many challenges in future and disappointments if they do not make a claim. If you want to buy insurance policy there are some things that you will have to consider some of them are:


This is the money that you will be required to pay to the insurance company from your pocket so that you can be allowed to claim the remaining cost. If the insurance companies allow their clients to fully claim everything they will perish within a short period. The insurance companies have to set something so that you can be encouraged to drive carefully. Some companies will indicate in the terms and conditions if the excess money that you pay will be applied to the third party, or it will be applied only to your damaged car.

Named driver access

This idea is of great importance since if you add so many named drivers to your insurance policy, you may be required to pay more premiums. But one thing you have to know is that you will prevent yourself from paying a lot of money if they happen to have caused the accident.

If the named drivers are inexperienced and very young, you will have to pay more premiums as these factors increase the risk of your being involved in an accident. Many people in Singapore will not like to add so many drivers on the list unless they are regular users of the car. This way they pay fewer premiums annually and opt that if the unnamed driver is involved in an accident, they pay an excess.

Car Insurance Annual Premium

This what you will have to pay every year so that you can be covered, this will depend on the company that you will buy your insurance from. Insurance companies can be able to determine how likely you can get an accident depending on your driving experience, gender, and your age. The more likely you can face an accident the higher premiums that you will pay.

If a year passes without you making an accident claim the insurance company will give you 10 to 50 % discount on your premiums so that you will not pay the same amount of money each year.

Third party vs. comprehensive

This names may sound to be complicated, but they are very simple to understand. In simple terms, the type of insurance policy that you will get for your car is of great importance as it reveals what will be covered. When you look at comprehensive insurance policy coverage, you will find that it covers many things, but there are some that it will not cover such as damages from nuclear terrorism, natural disasters, and civil riots. On the other hand, the third party policy will have limited coverage, making you pay low premiums. This policy will not cover your costs but those of the other parties that are involved in an accident.

You can select a third party policy only when you have fully paid for it, and it is more than eight years old. If your car is ten years old and you have not finished in paying for it, you will not be allowed to take the third party policy.

If you have bought a COE car and it has finished over ten years, it is good that you consider taking the third party insurance policy so that you will pay less. This is because in some cases you might consider to scrap the car after you are involved in an accident instead of going to the workshop to repair it.

Authorised vs. unauthorised workshop

Every insurance company in Singapore will have its list of the authorized workshops where you can take your car to be repaired. It is good that before you sign the policy you look at it to see it you will be allowed to choose a workshop from their list or you can select a workshop that is not on their list.

Insurance companies that limit you to go to a preferred workshop will give you some discount for the repair services that you get. It is therefore good to go to the insurance company that has a list of authorised workshops so that you do not pay a lot of money. You can also look at the list to determine if you can find on the list of the insurance company, your favorite workshop. This way you will be able to get a lot benefit as you can repair your car without any difficulties.

Loss of use benefits

If your car has spoilt, you got an accident and stuck on the road; the insurance company will give you some form of benefits to cover up the inconveniences that you would have faced. You can check if the insurance company that you want to take will offer a car replacement while your car will be repaired. You can also look at how many days the company will allow you to use the replacement car before you return it. Some insurance companies do offer transport allowance to compensate for this period. These benefits are important as they can assist you before you recover from an accident.

Terms and conditions

Generally, before you sign any insurance contract, you will be required to carefully read through the policy. It is good that you do not rush into signing that you accept the terms and conditions requirement. This is to enable you to know what is covered by the policy and any conditions that can hinder you from a claim after an accident.

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