If you’re reading this, we’re sure you’re well aware of what car insurance is and how it’s compulsory for every car owner in Singapore to have it. Some car owners have truly eye watering car insurance premiums with too many add-ons and this is where we come in.

Car insurance is an added expense for every car owner and keeping the premium low is what most car owners would want. One sure fire way to lower your car insurance premium is No-Claim Discount (NCD), which every insurance company offers. Simply put, your NCD increases by 10% for  every year that you drive safely and don’t claim anything from your insurance. This goes up to 50% which means you get 50% off your insurance premium if you don’t claim by the fifth year. Some insurers may even offer Lifetime NCD, which means paying only half the premium forever.

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Other than just the NCD, here are five other ways to lower your car insurance premium while keeping you covered on the road:

Higher excess, low premium 

Excess is the amount of money you need to pay out-of-pocket when making a claim before the insurer handles the rest. Even though it sounds like there’s more money leaving your pocket, opting for higher excess means you can get a discount on your premium. Some drivers rather forgo this discount and opt for lower excess because it lowers their financial risks when driving. It all boils down to whether you can fork out the extra cash then and there.

Most insurers have flexible excess that can be adjusted based on the driver's budget and circumstances, but some insurers have standard excesses that aren’t negotiable. Flexible excess allows you to choose the amount of excess you’re willing to pay in the event of a claim, but this is sometimes counted as an ‘add-on’ which increases your premium. Before negotiating, always go through your policy thoroughly and ask questions if in doubt and be sure to set a limit that you can commit to.

Getting your licence as soon as you can

Drivers with more experience generally are less accident-prone and thus, insurers will usually charge you with a lower excess if you’ve had your driver’s license for over four years. A ‘young’ driver is seen to have higher risk and thus, the insurer would usually charge a higher premium. Even if you’re not thinking of getting a car anytime soon or even driving a lot, it’s still a great idea to get your driving licence earlier.  Your future self would thank you when it’s time to eventually get car insurance.

Going to insurer-authorised workshops

When you get your car insurance, always check for the insurer’s list of approved car workshops to send your car to when it needs repairs instead of your own workshop; this keeps your car insurance premium low. If you are super loyal to your mechanic, then your car insurance premium would go up because to have a ‘preferred workshop’ is an add on to your insurance plan.

Say no to unnecessary add ons

Add ons here refer to both modifications and also add on benefits to your existing car insurance. If you want to make your car stand out in the crowd or you’re simply bored with its appearance, you might want to hold your horses. Making modifications or enhancements to your car could affect your insurance coverage and increase your insurance premium. The General Insurance Association of Singapore advises car owners who modify their car to notify their car insurer because if you fail to do so, your claims may be declined if you get into an accident.

Every insurer has a list of add-ons which add extra to your premium and thus increasing its overall price. Some additions might not even be necessary so whittle it down to what fits your driving and lifestyle.

Although we want to help you to lower your car insurance premium, things you need to take into account is also whether it’s a family car or if you take frequent road trips. You need to really pick and choose add-ons that could save you time and money in the event something untoward happens. 

| See more: Have you got enough coverage on your car insurance plan |

Shop around

Before buying a car, always check for its insurance costs as you will need to keep renewing it for as long as you have your car. As a recurring cost, you should keep track on how much it’ll cost and also how best to get the best bang for your buck.

Insurance companies also often have promotions which could mean lower premiums or added benefits so always keep an ear out for these and grab them while you can. Some companies also provide loyalty discounts but do be sure to check with your insurer. Other discounts include offers if you pay the annual or six-month premium in a lump sum, using e-bills and documentation or if you’re a member of particular organisations or groups.

Most importantly, these promotions have a deadline so keep being on the lookout for them and also always keep an eye on your insurers website to grab those deals and promotions while they’re hot!

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Conclusion

The best way to lower your car insurance premium is NCD as mentioned but there are also other ways to help alleviate that pinch when it comes to renewing your car insurance. Of course, most of these discounts come naturally with good driving habits so always stay safe on the roads and your premium will definitely not be high. 

Aaron Tan

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