Wondering if you're paying too much for your car insurance premiums? 

The good news is that there are plenty of ways to reduce your car insurance premium quotes to match what you need as well as what you can afford.

So, what's the first step? 

1. Be a safe driver 

While cutting back on your car insurance premiums shouldn't be your only motivation to be a safe driver, it's definitely something to be aware of!

By avoiding accidents on the road, you're allowing yourself to reap the benefit of an accumulating no claims discount which you can add up over the years as you remain accident-free. 

As insurers continue to see that you're a reliable and safe driver, over the years the no claims discount increases, adding to your savings on car insurance premiums. 

Here's a table showing how your NCD will accumulate over time: 

NCD no claim rates in Singapore for private vehicles
Period of insurance with no claim Discount on renewal
1 Year 10%
2 Years 20%
3 Years 30%
4 Years 40%
5 Years 50%


Here's a tip to reduce your premiums even further. If you're about to renew your car insurance and are currently already enjoying a 50% NCD, you're entitled to a 5% safe driver discount!

You'll also want to take note of how much of a reduction on your NCD applies should you get into the unfortunate situation of an accident. Most insurers in the market apply a 30% reduction to your NCD should you be the driver at fault. 

Meanwhile, Aviva's car insurance plan makes only a 10% reduction for every "at fault" claim*, which will save you from losing a bigger proportion of your discount.
*excluding Aviva Lite plan

While no one likes to think about the idea of getting into an accident, anything can happen on the road, and so it's definitely worth considering this when you choose a car insurance plan. 

2. Name your drivers

If you plan on sharing your car with someone else, you might want to consider naming this driver on your policy. 


Some policies may offer a discount for naming another driver on your policy such as a spouse. So, it's worth inquiring with your car insurance provider.  

But aside from lowering your premiums, car insurance policies differ in their terms regarding other drivers using your vehicle. 

While some policies do acknowledge implied consent, such as letting family members drive your car, this does not apply to every policy.

It's always important to check with your insurance provider on whether you will be covered for an accident resulting from a family member or another driver driving your car.

This especially applies to higher-end performance or supercars, which usually requires that you name other drivers on your car insurance policy.

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3. Accept a higher excess 

An excess is an amount you'll need to fork up on your own to cover any repairs needed in the event of the accident. It's a fixed amount that's agreed upon before signing up. 

For example, if repairs on your car come up to a total of S$9,000 while your car excess is S$500, you'll need to first pay S$500 (before GST) for the repairs in order for the remaining S$8,500 to be covered by your insurer.

Opting for a higher excess amount means that you'll pay a lower premium monthly since the amount the insurer will be paying in the event of an accident would then be lower.  

Also, be sure to check out car insurance plans which offer zero excess for certain types of coverage. For instance, Aviva's Prestige plan offers zero windscreen excess as well as zero additional excess for young and inexperienced drivers. If you have a young and inexperienced driver in your family, you might want to consider this plan!

This gives you more bang for your buck in terms of coverage because, this way, these types of coverage won't be tacked on to your monthly premiums.

4. Choose a policy based on needs vs affordability

When choosing the right car insurance policy and package for you, always consider your needs vs affordability when choosing the add-ons for your car insurance policy. 

While it's always advisable to get the most comprehensive protection possible for your protection on the road, you should definitely consider your own ability to make monthly premium payments that are realistic based on your finances. 

The way to do this is to compare different packages from a provider and understand the advantages of one over the other. 

For instance, the Aviva Standard plan offers great protection for accidents including S$2,500 in medical expenses and S$50,000 personal accident coverage.  

Meanwhile, with Aviva's Prestige plan, you can have even better peace of mind on the road with its eCall assistance service, S$100,000 personal accident coverage and up to S$5,000 in medical expenses for you and your passengers.

If you can afford the Prestige plan, it offers you that additional peace of mind with the eCall assistance service and higher coverage in medical expenses.

You could consider both plans and decide for yourself which you can realistically afford on a monthly basis for premiums. However, we always advise the best protection possible if you can afford it!

5. Seek out discounts and bundle offers

Make sure to seek out discounts and bundle offers which reward customers for having more than one insurance type with the insurer.

For instance, if you have both a group term life insurance plan and a car insurance plan with the same insurer, you should go ahead and check to see if this awards you any discounts to take advantage of. 

With Aviva, you'll be able to get additional quotes for your family members at competitive prices if you're already an existing Aviva customer;

Aviva offers both MINDEF & MHA Group Term Life / Group Personal Accident or POGIS Group Term Life policyholders additional 15% discount on top of any on-going promotion. And even better, this extends to your immediate family members as well. 

Enjoy exclusive privileges as an insured member of MINDEF/MHA or POGIS group.
Up to 36% off when you purchase your car insurance with AVIVA today!


If you're seeking to lower your car insurance premiums, it's clear the first step is to foster better driving behaviours on the road. Although, we hope you're staying safe already!

And while it's obviously ideal to never get into an accident, it does happen from time to time. And so if you do get into a tussle on the road, Aviva insurance offers a great tool for peace of mind in that situation - the Aviva eCall assistance service benefit. 

The Aviva eCall is a life-saving smart device designed to help you get quick and professional roadside assistance. With automatic crash detection, the smart device will automatically alert our emergency team in real-time.

Simply plug in the eCAll sensor device, connect to the Aviva eCall assistance app, pair your device with Bluetooth and you're all set for safe drives ahead!

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(This article is sponsored by Aviva)

Susanna Lim

Susanna Lim

Susanna is an experienced writer on topics such as personal finance, business and lifestyle. In her spare time, she's into reading and watching random documentaries.