If left unchecked the costs of getting car insurance in Singapore can get quite expensive, and with coverage rates constantly rising as time goes on, it seems that prices won’t be getting any cheaper anytime soon.
With auto insurance being mandatory in Singapore, having a vehicle at all may seem like an unreasonably expensive goal to some.
Fortunately, there are workarounds to these price tags that can help us get cheap car insurance. Let’s have a look at some of the most common ways to lower your car insurance costs in Singapore.
1. Drive safely
First and foremost, drive safely. This may sound like a no-brainer; however, we can’t overstate how important this tip actually is. Driving safely can seriously cut down on most of the motor insurance premium.
By actively avoiding accidents, not only are you going to get better rates thanks to a clean driving record, as well as save on the excess fees typically charged when filing a claim, but you’ll also save big by becoming eligible to a variety of discounts.
For instance, by having a claim free record with your insurance company, you are entitled to a No Claims Discount of 10% for every year with no claim on your insurer, up to a maximum of 50% for the full 5 years of holding a good record.
Additionally, if you haven’t had any accidents in the past 3 years, Traffic Police of Singapore will award you with a Certificate of Merit, which translates into a 5% Safe Driver’s discount on the premium.
Just by taking into account these two basic discounts, you can easily save thousands on insurance premiums every year, not to mention your potential savings earned by not raising your insurance rate with an accident.
2. Skip coverage that you don’t need
Obviously, if you’re driving a luxury vehicle or an expensive sports car, you might not want to skip on comprehensive collision coverage, since getting in an accident could potentially cost thousands on repair bills (or much more if you have to replace the totaled vehicle).
However, if your vehicle is old and expendable, or if you’re simply planning on buying a new car sometime soon, getting more basic third party only coverage may be one of your best bets to getting cheap car insurance rates.
For example, if you bought a second hand 2002 Kia for $5,500, getting third party coverage for $800 may sound a lot better than getting a $2,800 plan, despite the latter being for full coverage, since the price of the premium could easily end up overshadowing the car’s face value.
Also, keep in mind that some additional services and options such as unlimited windscreen coverage and freedom of choice when it comes to repair shops might be end up being an unnecessary luxury that you could easily skip for cheaper options.
3. Keep your vehicle mod free
Modifying your vehicle in any way is usually a big no-no when comes to car insurance. Although some insurers might overlook LTA approved mods, others might be quick to judge, setting more expensive rates for your vehicle. So, before even considering the option, always ask your insurance provider first.
4. Fully explore all the extras and options
Aside from shopping around and comparing car insurance costs (which you can easily do here at GoBear through our online smartsearch calculator), you should also fully explore all the money saving options each insurer has to offer.
For instance, if you plan on giving your vehicle limited usage, some insurers might offer you the option of getting low-mileage insurance which is considerably cheaper than ordinary auto insurance. Off-peak cars also tend to get their very own discounts.
Other insurers might allow you to limit your coverage to only include drivers 30 years of age and older, for an additional discount.
Finally, some insurance providers might give you the option of negotiating your excess fees, allowing for higher excess payments, giving you the benefit of paying lower premiums at the cost of a higher excess fee if you ever happen to get involved in an accident.