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Think back to the first car you ever bought. It was exciting yet a learning curve, right? Other than researching car models and figuring out your budget, one thing you had to do was buy car insurance. Yup, that’s one of the mandatory tasks to complete when purchasing a car.
Some people choose to just pick up their car insurance plan at the dealership along with the car keys as there’s usually a discount (and who doesn’t like discounts right, and especially in this time of high inflation).
But despite the potentially lower cost of the dealership’s insurance, did you consider that it might not actually provide the most comprehensive coverage in the long run? After all, car insurance isn’t just some piece of paper you buy in order to drive and own a car…what if you (touch wood) actually need to make a claim?
So, if your car insurance is up for renewal soon, it might be time to shop around for a better plan instead of simply renewing your original one out of convenience or just because it’s cheap.
But how do you know when it’s time to make the switch? To help you make an informed decision, here are five things you may not know about your car insurance.
1. Don’t disregard the NCD (no-claim discount) penalty
You may see yourself as Singapore’s safest driver, or at least, you’re very confident about your driving skills.
Be that as it may, you should always take note of your car insurance’s NCD penalty, just in case (choy) you need to make a claim.
Let’s backtrack a bit. An NCD is a discount offered on your insurance premiums at the end of each year in which no claim has been made. Your NCD usually increases each year for a fixed number of years before it hits a maximum.
Typically, for every claim you make, car insurers reduce your NCD by 30%. As a driver, you need to build up your NCD over the years, and it really sucks to have it reset by so much if you need to make a claim (even though it’s not your fault!).
Having a decent NCD is actually quite important as the cost savings can be enormous, and in this high inflation climate we need all the help we can get. 30% is a big chunk of money, especially if your NCD was previously 50% and has now dropped to 20% all because you had to make a claim. If you’re really, really unlucky and your NCD resets to 0%, you might need five long years in order to regain your 50% NCD (provided no claims are made in between).
Well, did you know that Singlife Car Insurance offers one of the lowest NCD penalties right now? For every claim you make, they only reduce it by 10% (excludes the Motor Lite plan). When there’s a lower penalty, it’s easier to make back your NCD, and this also means your premiums during the next renewal are not as significantly impacted as other insurers who impose a higher penalty.
2. It’s possible to keep your NCD intact even after a claim
Wait, is this a loophole? No, you heard that right! There is actually a car insurance plan that lets your NCD stay intact even after you make a claim.
That plan is the Singlife Car Insurance plan.
Singlife’s Claims Promise is that if you were not at fault for the damage to your car, your NCD will remain intact and you also won’t have to pay any excess upfront1.
3. Young/inexperienced drivers can skip the additional excess
The excess is the amount you have to pay before you can receive your insurance claim payout. So, if your excess is $400 and you want to make a claim for $1,200, that means you must first pay $400 before the insurance company will pay out the remaining $800.
Young and/or inexperienced drivers may be required to pay an additional excess as the insurance company considers them riskier. This is typical of car insurance plans.
That’s not very reassuring for your wallet, whether you’re a new driver or a worried parent who’s seeing your child take to the road for the first time
It could be a financially painful way to begin one’s driving career, but we’ve all gotta start somewhere.
To make it easier, Singlife Car Insurance’s Prestige plan imposes no additional excess for young and/or inexperienced drivers. This means you don’t need to worry about additional out-of-pocket expenses if a young and/or inexperienced driver (24 years and below or who has held a valid driving licence for less than 2 years) is at the wheel when an accident occurs.
Those first few months on the road can be nerve-racking as you or your child gets familiar with road conditions and other drivers’ behaviour. With Singlife Car Insurance, you’ll at least have the peace of mind that in the event of a claim, you won’t have additional out-of-pocket expenses to contend with.
4. You might pay less for car insurance if you’re of a certain demographic
You may have heard that certain people get to pay lower car insurance premiums depending on factors such as gender, car model, age and even marital status.
So, an 18-year-old driving an ah beng sports car could very well be paying higher premiums than a married, middle-aged mother driving a Toyota Camry.
It’s not an urban legend. Read our related article here: Car Insurance in Singapore: All You Need to Know to Get the Cheapest Rate (2022).
5. You can get discounts/savings during promo periods
Look out for special promotions where car insurance premiums are offered at discounted prices. For instance, Singlife is having a promotion right now that gives you up to 35% off* your car insurance premiums!
If you’re a discerning individual who cares about getting comprehensive coverage rather than only cheap premiums, the Singlife Car Insurance plan can be a good option.
It provides comprehensive coverage with three plan types to choose from. The plan also offers one of the lowest NCD penalties available^ (10%), a Claims Promise so your NCD remains intact1 if the accident wasn’t your fault, and no additional excess for young or inexperienced drivers.
To claim your discount of up to 35%*, use the promo code CAR23 (valid until 7 December 2022).
Ready to drive off into the sunset knowing that you’ve got protection at great value? Get a quote for peace of mind and comprehensive benefits.
^Excluding the Motor Lite plan.
*T&Cs apply. Protected up to specified limits by SDIC.
1 This only applies if you are involved in an accident with an identifiable Singapore car(s)
This policy is underwritten by Singapore Life Ltd. MoneySmart is not an insurance agent/intermediary and cannot solicit any insurance business, give advice, recommend any product or arrange any insurance contract. Please direct all enquiries to Singapore Life Ltd.
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Original article: 5 Things You May Not Know About Your Car Insurance.
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