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Types of Car Insurance Cover

Insurance companies in Singapore offer 3 main types of Car Insurance policies:

Third-Party Only Cover

Third-Party Only policy not only covers death or bodily injuries to third parties (including passengers) but also provides cover against damage to property belonging to third parties. The policy also covers any accident occurring on the the road and on private property. However, it does not provide cover against damage to the insured’s own motor vehicle, whatever the cause.

Key Benefits:

•  Death or injury to other parties

•  Damage to other parties’ property

 


 

Third-Party, Fire & Theft Cover

This is an extension of the Third-Party Only policy in that it additionally protects the insured’s own motor vehicle against loss or damage which may result directly from fire or theft. The loss does not need to be total, as this policy covers even partial damage to the insured’s own motor vehicle. This type of coverage is usually compulsory for any owner who is still financing his motor car which is more than 10 years old.

As the insured perils are limited to fire and theft, damage to the insured’s own motor vehicle by any other perils is not covered by this policy. Hence, a motorist who want additional protection for this motor vehicle against loss or damage by other perils will have to purchase a Comprehensive coverage policy.

 

Key Benefits:

•  Death or injury to other parties

•  Damage to other parties’ property

•  Fire damage to, or theft of, your vehicles

 


 

Comprehensive Cover

This type of policy offers the broadest protection against financial loss from using a motor vehicle up to its market value. This policy not only covers the insured’s liability for causing bodily injuries (including death) or property damage to third parties (including death and bodily injuries to passengers), but also covers accidental and malicious damage to the motor vehicle that the insured owns, or with some exceptions, other motor vehicles that the insured uses with permission of the motor vehicle owner.

Apart from these, the policy also offers additional benefits in connection with the use of the motor vehicle. For example, the insurer can provide for reasonable medical expenses that the insured has necessarily incurred arising out of his own bodily injuries. This medical expenses benefit can be extended to cover bodily injuries sustained by any named driver, authorised driver or passenger of the insured’s motor vehicle. Then, there is also the personal accident benefits which provide monetary compensation for the death or permanent disability sustained by the insure and/or any passenger of the insured’s motor vehicle.

Comprehensive coverage is usually not available for any motor car which is more than 10 years old. An owner is usually required to get comprehensive coverage if his motor car is less than 10 years old and is still under financing. However, there are insurers who provide comprehensive coverage for motor cars only up to 7 or 8 years old.

 

Key Benefits:

•  Death or injury to other parties

•  Damage to other parties’ property

•  Fire damage to, or theft of, your vehicles

•  Accidental damage to your vehicle

•  Windscreen damage

•  Damage arising from riot, strikes & civil commotion

•  Personal Accident cover (Private Motor Only)

•  Medical expenses (Private Motor Only)

 

Optional Benefits for Comprehensive Policies

Optional benefits are available to meet your individual needs. Do note that optional benefits for comprehensive policies may be subject to payment of additional premium.

 

Key Benefits:

•  Damage arising from flood and windstorm

•  Liability of passengers for acts of negligence

•  Personal Accident benefits for passengers

•  Additional excess

•  No-Claim Discount protection (Private Motor Only)

 


 

The following information is usually asked for in the Motor Insurance proposal form:

 

•  Proposer’s name, address, contact details & other personal particular

•  Driving experience

•  Occupation (indoor/outdoor) and nature of business

•  Claims experience during the last 3 years

•  Period of insurance required

•  Details of named drivers(s), including age & driving experience

•  No Claim Discount (NCD) entitlement from current/previous insurer

• Type of coverage & optional extensions required

• Market value of the car & whether to insure with or without COE & PARF value

• Years of manufacture of the car

•  Details of accessories

•  Body & car type

•  Car model & seating capacity

•  Registration number & date of registration

•  Engine & chassis number

•  Whether the car has been modified

•  Name of hire purchase company, if the car under hire purchase

•  Vehicle usage – private, business or hire, normal or off-peak

•  Insurance history – declined, cancelled, imposed an excess or other special terms, or refused to renew insurance

•  Other pertinent information, such as any existing physical or metal infirmity, defective vision or hearing, deduction of demerit points, conviction of driving offences (excluding parking fines) during the last 3 years, pending prosecution, suspension or cancellation of driving licence and frequency of driving to Malaysia.

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How To Secure The Cheapest Car Insurance

Below are some of the ways to secure a cheap car insurance:

Protect Your No-Claim Discount

Most insurance companies in Singapore provide protection for your No-Claim Discount accumulated over years. They generally view these group of drivers being the ‘ good and safe drivers’. Thus the higher your No-Claim Discount, the lower your car insurance premium.

 

Safe Driver Discount (SDD)

Certificate of Merit (COM) will be issued to drivers who maintain a clean driving record for 3 continuous years. The COM entitled you to a 5% discount on your motor insurance premium from most participation insurance companies in Singapore. All car owners of privately-owned vehicles including buses and motorcycles are eligible for the COM. Some insurers are willing to give more discount on top of the standard 5%.

 

Loyalty Discount

Check out whether your insurer does offer you a loyalty discount for your car insurance renewal. This premium discount varies from insurer to insurer. It can be a percentage discount or a flat amount of rebate.

 

Remove Young Named Drivers

Adding young and inexperienced drivers to your policy will cost your car insurance premium to increase significantly especially so if you are driving a high capacity or high end vehicle. Although, when the accident occur, you may need to pay a higher excess for the young and inexperienced driver in your car insurance policy.

 

Make & Model of the Car

You may have to pay more insurance premium if you are driving a high-power vehicle or a high value car. Your car insurance premium will also generally be higher if your repair cost for your car model is high. You may wish to do your sum before deciding on the make and model of car to purchase.

 

Usage of the car

Reduced mileage generally attracted lower car insurance premium. You can enjoy a lower car insurance premium if your car usage is for leisure purpose only. If you use your car for sales job purpose on for hire and reward, you tend to pay a higher car insurance premium. Some insurers also offer a premium discount (eg. 5% to 25%) for insurers an off-peak car in the view of it’s reduced usage.

 

Secure Your Vehicle

Cars with good safety devices such as alarm, immobiliser, video recorder or tracking device, can attract a discount off your car insurance premium.

 

Increase Your Voluntary Excess

By increasing your voluntary excess will bring down your car insurance premium. However, you have to be comfortable and agree to pay more towards the cost of any accident repair. Why not if you are a consistently good and safe driver. If you are not at fault, the excess can be recovered.

 

Be A Better Driver & Participate in Telematics Policy

Some insurance companies in Singapore encourage car owners to participate in their telematics policy initiatives. In some countries, they call it the blackbox insurance. This telematics policy rewards good and safe driver. The better you drive, the cheaper your car insurance premium.