January 9, 2019

Is Car Insurance Expensive In Singapore?

Congratulations on purchasing your first car! Now what? Looking for car insurance and wondering how much it can cost? Is it very expensive? Let’s see! Buying car insurance is not a very exciting matter. It can be a complex and tedious process, especially when you don’t have any experience in purchasing insurance policies. However, you have to get it, because it is mandatory in Singapore. In this guide, we’ll discuss each and everything about purchasing car insurance in Singapore. So, keep reading!

Is Car Insurance Expensive in Singapore?

Let’s first answer your question. So, the short answer is, Yes, to an extent! According to a survey, the cheapest car insurance policy was recorded to be $850. Sounds crazy, right? And know that this policy was for an average driver with a clean accident record. And also, if your record is not clean, then be ready with more money. The car insurance premium is calculated on the basis of a number of cases. Basically, different insurers try to calculate the likelihood of an accident and it’s expected recovering cost on the basis of the following factors:
  • Age
  • Sex
  • Marital Status
  • Occupation
  • Driving Experience
  • Claim History
  • No Claim Discount (NCD)
  • Certificate of Merit (CoM)
  • Type of Car
  • Car Usage
Unlike every other thing in the world where you can easily compare the prices and find the cheapest one, car insurance doesn’t work in that way. It’s a tricky process because every insurer offers a different policy on a case-by-case basis. On top of everything, most car insurers don’t disclose their prices and offer you a free quote online. However, this is not the case with https://www.directasia.com/car-insurance/, we offer free quotes to our customers. Further, you’ll be happy to know that we are known for providing the cheapest car insurance policies in Singapore.

How Much Exactly A Car Insurance Cost In Singapore?

In reality, there is no fixed price for car insurance policies. There are thousands of car insurance policies and each company or individual insurer has their own policies and terms and conditions. For this reason, the price of different policies keep fluctuating as you go from one provider to another. Each policy varies on the basis of the following factors : Age – If your age is below 27, be ready to pay a higher insurance cost around $2500. If you want to enjoy low-cost premiums, you should have at least three years of experience. Marital Status – If you’re married, then you can get low-cost premiums. The logic is, married individuals, drive with more care because they have someone they care for. On the other hand, singles are subjected to higher premiums as they are likely to drive more recklessly. Driving Experience & Claim History – Drivers with a clean accident history and claims are granted lower premiums. Car Make and Model – A simple, sober car means a lower premium. On the other hand, a luxurious car is more likely to incur higher insurance costs. Current No Claim Discount (NCD) – If your NCD is higher, you’ll pay less for your policy. But if your current NCD stands at 50%, you’re likely to keep it forever with no added charges. Demerit Points – Low demerit points means you’re rewarded for being a safe driver. And this will help you in securing some great discounts for your CoM (Certificate of Merit). This certificate is given by the traffic police. Past Claims – Drivers with no claims are able to get lower premiums as compared to the drivers that made claims previously. No claim history is a sign of safe and responsible driving.

What Type Of Car Insurance Policies Are There?

There are mainly three types of car insurance plans in Singapore. However, the basic requirement here is Third-party insurance. Moreover, if you’ve purchased a new car and you’re still paying off the EMIs or mortgage, you may be asked by your bank to get a more comprehensive insurance policy. The reason is, the car is not considered to be yours until you pay the the entire loan. If you’re looking for the cheapest car insurance company in Singapore, DirectAsia may help you. They offer low premiums and offer free quotes as well. This is about it. So, what are you waiting for? Visit DirectAsia and get your online quotes today!