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Considerations When Looking for Car Insurance in Singapore

Car insurance policies offer different levels of coverage, and this is perhaps the most crucial consideration when choosing one. Choosing an insurance policy should be your top priority, as it must offer comprehensive protection in terms of each category of protection. Check car insurance quote online Singapore.

The following types of protection should be checked out:

  • If you get into a car accident with another person, you will have medical coverage for them as well
  • Due to your accident, you need medical insurance
  • A vehicle accident caused damage to another’s vehicle
  • As a result of the accident, your vehicle is damaged
  • Theft of cars
  • Stolen belongings from a vehicle

The best comprehensive car insurance plans should provide all of the above rather than a third-party, basic policy.

Excess

If there is an accident, your excess or deductible is the amount you will be required to contribute to any medical coverage or auto repairs. Consequently, you would have to pay a certain amount to the doctor or mechanic in advance before you are reimbursed by your insurer.

Your insurance premium is usually lowered the higher the excess or deductible on your policy. Excess coverage is intended to prevent reckless driving on the road and unnecessary claims.

Considering the cost of the total replacement instead of a higher premium will enable you to determine an excess amount. Though you are always entitled to a lower premium, you should also consider whether you want to risk the higher excess should you ever get into a car accident.

Customisation

A policy you can tailor to your particular needs is best with car insurance policies. With specific policy add-ons, you can customize your policy, and you’ll have extra security for your particular situation.

For instance, some car insurance policies have extensions that cover natural catastrophes like floods or earthquakes, while others cover strikes, riots, or civil disturbances.

Consider these car insurance add-ons:

  • Replace your intelligent key fob
  • Damage to the windscreen
  • Added drivers
  • Protection against natural disasters

Civil Unrest, Strikes, Or Riots

It’s always recommended to add additional coverage but be realistic with what you need. You might want to think twice before buying them in Singapore, which isn’t that susceptible to natural disasters and strikes.

If you consider the damage to your windscreen more likely to occur given the geographic location and local climatic conditions, you might consider buying an additional add-on to cover this.

No Claim Discount

There is a no claim discount (NCD). It is a discount offered to drivers who have not made claims from their insurance for a specified period. Depending on the type of car insurance policy, different timeframes and discounts may be offered by NCDs.

As you do not claim your car insurance in subsequent years, your NCD percentage increases. It is possible to obtain a claim from your insurer even if you are not responsible for an accident.

In Singapore, this is determined by the Barometer of Liability Agreement (BOLA), which determines your level of responsibility after an accident. Should you make a claim from your insurer and your liability falls below 20%, it will not affect your NCD.

What are the implications of the NCD when choosing an insurance policy?

You will be eligible for an NCD Protector extension when your NCD status reaches 50%. If you have an NCD status of 40%, you may still be covered by NCD Protectors. Look for a car insurance policy that offers an NCD Protector to see if you qualify.

Cost

When choosing an insurance policy, the cost is also an essential factor to consider. It’s easy to get carried away with adding on extras and selecting a policy with maximum coverage. However, it would be best to understand the implications of purchasing a policy you cannot afford for a long time in the future.

For instance, to avoid losing your insured amount if you lapse on an insurance policy, go for a policy that offers affordable premiums that you can afford to pay long-term.

Telematics

New technologies have made it possible for insurers to price premiums in new ways while rewarding safe drivers. Those who want to pay less for their auto insurance can install an artificial intelligence telematics device in their vehicles to track their driving behaviour – especially those who are safe and cautious drivers. As a result, cheaper premiums are charged to safer drivers.

Conclusion

To truly determine what policy will cover your needs, you need to go through all of the insurance policies on the market. Make comparisons and contrasts to gain a better understanding of the policies that are suitable for your situation. Search top 5 best car insurance in Singapore.

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