Cheaper car insurance, really?
If you went around to ask for insurance premium quotes from different persons who approach the same insurers to quote for you, it is logical to think that you would receive the same price from the same insurer.
There are differences in prices – when you compare between different insurers – however, watch out for the differences in the coverage that they provide! It is very likely that the cheaper insurance premium buys you less benefits than the more expensive one, e.g.: loss of use coverage, higher excess value, non-comprehensive cover and so on.
So what makes a difference in lowering the insurance premiums that you pay for running your car on the road for another year?
No Claims Discount
Everyone knows this. If you didn’t make any claim from your car insurance for the past five years, you effectively get half priced or 50% discount on your insurance premiums.
Each accident free year, or in the case of minor accidents that you choose to pay for on your own, you will earn a 10% discount the following year.
Drive carefully and this should be easily achievable. Be careful though, as one accident can wipe our or drastically reduce your NCD for the next renewal, costing you may be hundreds or thousands more.
It could be worth your while to consider taking up NCD protector, which is additional insurance rider that keeps your NCD at 50% intact even in case of an accident, whether it is deemed as your fault or not. Be sure to mention this when you talk with our insurance consultants as it is not usually provided for unless requested.
Off Peak Car Discount
Did you know that insurers will give you a discount (usually 5%) for driving an off peak car?
It’s another reason to consider that Off Peak Car, but if your routine requires driving during the usual hours then, read on.
Restricted Drivers Discount
If you restrict the drivers to your car to only a few named individuals who have greater than 2 years of driving experience and are aged 30 and above, you can get a discount from most insurers. Do note that this condition is quite restrictive, and should any driver other than the named be driving in the event of an incident, claims may be disallowed.
Certificate of Merit Discount
Maintaining a points free driving license allows you to receive a certificate of merit and participating insurers will give you a discount on your premiums for this. Most well known insurance firms, 23 of them are listed in the LTA website. Click here to find out more (login required).
Insurers will give a discount to those who stay with the same insurer for a certain number of years. E.g.: NTUC income offers a discount of 5% for long time patrons. Discount rates and length of staying with insurers may vary between different insurers.
Your occupation affects the premium to a certain extent – and broadly, these are classified under two categories – indoor and outdoor jobs.
So if you work in an office as compared to a sales person who moves about to visit customers, your insurance premiums will likely be lower.
Other Methods of Lowering Saving On Premiums
It is logical that an experienced driver, married and aged above 40, working in an indoor job, and driving a car that is known to be cheaper to repair will receive quotes that are lower than an inexperienced driver.
So a clear way for some to save is to buy a sensible car, register and insure it under the name of and elder member of the family.
The downside is this would mean that you do not build up your own NCD over the years. However, for a driver who has just gotten his license, it is a good way to be insured and clock up a few more years of driving experience before getting insurance directly in his own name. It would also benefit for those who intend to go overseas for some year (to study or work), as all NCD is lost once the insured stops driving for more than 12 months.
Another tip, keep your car in good operating condition. Good maintenance, especially of the safety related components of the car (such as the brake pads, rotors & ABS), can save you an accident and keep your premiums low. Don’t try brake pads that are not original equipment or of a well known brand that have been tested and proven by other users driving the same model of car – this can easily lead to an accident (as I have personally experienced).
Talk to Our Insurance Consultants
Be sure to remember the above points and which discounts you qualify for, then contact us using the web contact form (on the right side of this page) or SMS +65 92782880 and discuss with us your car insurance needs.
Point to note though, please be truthful in all declarations such as your occupation as false declarations may lead to complications in times of a claim which may then cost more than the small savings you got on your premium.
SG Cash N Cars wishes you all happy and safe driving!
Important to note: The above is not to be understood as final and binding in any way, even if the text may seem to indicate so. The final terms and conditions of any insurance bought is given by the insurer in the policy text and the purchaser of the insurance is advised to read the policy carefully for all applicable terms and conditions.