Singapore Insurance - General Insurance

 

Auto Insurance Coverage in Singapore - Car Insurance / Motor Insurance Policy Explained

There is largely 3 types of Motor Insurance in Singapore :

   1. Comprehensive
   2. 3rd Party, Fire & Theft
   3. 3rd Party Only

Insurance Coverage Details:

Comprehensive (aka COMP)

    * This is the most common product line for Motor Insurance in Singapore. 

(It is the most common because motor car owners have imperfect information on what insurance coverage to go for, so in order to "play safe", most simply opt for the fullest coverage.)

    * Covers Own Damage repair on insured own vehicle
    * Covers 3rd Party Damage repair on 3rd party's vehicle
    * Excess / Deductibles usually applies
    * In the event of Total Loss (Due to serious Accident or Theft) the insurance company will pay out the Market Value of the vehicle AT the time of Loss

3rd Party, Fire & Theft (aka TPFT)

    * This is getting more common with the recent constant increase in Motor Insurance Premium in Singapore.

(It's increasingly common because the auto insurance premiums have skyrocketed over the past 5 years in Singapore, the main reason being cited was that the car insurance companies have been making losses...... Another reason is that car owners are getting more insrance-savvy and sophisticated, thus they know that not all cars need to purchase COMP insurance.)

    * This is subject to the approval of the finance company of the car
    * Covers 3rd Party Damage repair on 3rd party's vehicle ONLY
    * Excess / Deductibles usually DO NOT applies
    * In the event of Total Loss (Due to serious Accident or Theft), the insurance company will pay out the Market Value of the vehicle AT the time of Loss

3rd Party Only (aka TPO)

    * This is also getting more common in the mist of increasing vehicle insurance in Singapore.

(Unfortunately, this gets more commont oo, but for less pleasnat reasons. Some car owners fail to have insurance renewed, and could  not find another insurer to renew their motor insurance. This is mainly becuase they were involved in an accident, and made significant amounts of claim. To get insured, they had to settle for TPO)

    * This is subject to the approval of the finance company of the car
    * Covers 3rd Party Damage repair on 3rd party's vehicle ONLY

 

Factors affecting Premiums for Auto Insurance / Car Insurance in Singapore  

Profile of Insured / Registered Owner of the car

1. Age
This is the one time where it pays to be older. Generally, if an insured person is older, the premium will generally be lower. But this is only true up to 69yrs old.

Once a person crosses into 70yrs old, most insurer will not want to take up the risk.

So for drivers who is <26yrs old or > 70yrs old, premium are generally higher due to higher risk.

 

2. Driving Experience
Basically, since there are no other benchmarks on driving experience, the insurer will base it on the Date when the Singapore driving license are obtained.

Due to the increasing population of Expatriates, Employment Pass holders & Permanant Residents population in Singapore, some insurer DO take into consideration the driving license which the person has obtained from their home country.

This generally helps lower the motor insurnace premium that needs to be paid by them.

 

3. Make & Model of the car
The rule of the thumb would be that the premium will be lower for those Make & Model which has better claim experience. (Think Toyota Vios / Nissan Latio vs Mitsubishi EVO / Subaru WRX)

Another possibility could be also due to a larger brand share of a particular Make & Model which reduces the risk undertake by the insurer.

Below are some general Motor Insurance Premium price band by Brand
(Premium indication below excludes Turbocharged / Supercharged / High Performance vehicle / Coupes / Cabriolets / High valued vehicle)
NOTE : Information below are correct as on Jan 2010

Low Premium - Toyota, Nissan, Hyundai, Chevrolet & KIA

Medium Premium - Honda, Lexus, BMWs, Mercedes, Audi, Volkwagon & Renault

High Premium - Subaru & Mitsubishi

Disclaimer : Above are estimates correct as on Jan 2010 but information above are solely for reference purposes and :
We shall NOT be liable for any gains / losses that may arises from the above information.
We shall NOT be responsible for any reference link that may refer you to us.

 

4. Claims history

Put it simply, the more you claim, the more expensive will be your neneweal auto insurance premium,

This is the part which may cause HUGE increase in Motor Insurance Premium. Due to escalating claims, car insurance rates have increased about almost 50% over the last 3 years.

Claims record in Singapore stays with a person for 3 years. Therefore, to keep your premium low, careful driving without claims is one of the best way.

Another way is to pay a small fee to preserve your NCD (explained below). Thus, even when you make a claim, your insurance discount will still be effective.

Due to the huge claims suffered by insurer in recent years, once a person has :

    * 1 claim of > $30K in the last 3 years
    * 2 claims of any amount in the last 3 years

The person will probably have to SELL their car as there is NO insurer that will be willing to insure that person.
 
What is NCD / NCB?

NCD - No Claim Discount
NCB - No Claim Bonus

No Claim Discounts [NCDs] are discounts provided by insurance companies to offset against motor insurance premium. They are typically employed to reward policy holders for good driving records. This is being adopted by all motors insurance companies in Singapore.

When there is a change in insurer for the motor vehicle insurance, NCDs can also be transferred. For policy holders to continue to enjoy the NCD with the new insurer, insurance companies have to exchange information on policy holders’ NCD records.

Last, but not the least, you can check with Traffic Police if you have a valid Certificate of Merit (COM aka "White Card"). If so, you stand to enjoy a further 5% on your annual auto insurance quote upon renewal.

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