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Singapore law mandate vehicle owners to have personal motor insurance, this type of insurance provides vehicle owners with some financial protection in case of an accident or other unforeseen circumstances. In fact, without it, you cannot even renew your road tax.
The question on the lips of many is this – Is this insurance enough? Are there other options that are truly helpful? In this article, we would be teaching you how car/auto/vehicle insurance works and what types of coverage are available, and also the best plan for you.
What is Auto Insurance?
Auto Insurance is also known as motor insurance and this is simply a contract between you (a vehicle owner) and an insurance company in which you agree to pay premiums in exchange for protection against financial losses stemming from an accident or other damage to the vehicle.
For those who are new to insurance and its terminologies, you may be wondering what the premium is, don’t worry we are here to provide you with all the information you need.
Premiums are what you pay yearly or monthly with companies such as Direct Asia Insurance to maintain a car insurance policy.
Benefits of Getting Auto Insurance
Auto/Car insurance is designed to protect you against financial losses if you’re involved in an accident or the vehicle is damaged in some way.
What Coverage Does Auto Insurance Cover?
Auto insurance can offer coverage for:
Earlier in this article, we informed you that most countries/states especially developed countries require you to have personal motor insurance.
Auto insurance coverage is unique to the buyer and the vehicle you wish to insure of the insurance policy, this simply means that the insurance coverage is priced individually which can be due to age, years of experience (typically based on how many years you are licensed to drive/ride) and the vehicle you own/ going to purchase.
Insurance policies are generally issued for one-year time frames and are renewable. The insurance company sends a notice when it’s time to renew the policy and pay your premium.
What other types of auto insurance coverage are typical?
It is important you know that most basic, legally mandated auto insurance covers only the damage your car causes, it does not cover damage to your own car. To cover your own car, you are advised to consider these optional coverages:
Cost of Auto Insurance
Many persons would like to know what it cost to purchase an auto insurance policy before committing to the budget most suitable for them. There are two primary costs associated with purchasing car insurance, namely:
Auto Insurance Premiums
Auto insurance premiums vary due to various factors such as age, gender, years of driving experience, accident and moving violation history, among others.
Insurance excess is the amount you have to pay when filing a claim before the insurance company will pay out anything to you for damages. So, for example, your policy may have a $1500 or $15000 excess. Agreeing to a higher excess can result in a lower premium but you’d have to be reasonably sure you could cover the higher amount if you need to file a claim.
How to Purchase Auto Insurance Online
You can easily get an instant auto insurance quote online and proceed to purchase auto insurance online, simply follow the guide below
Can auto insurance be purchased online?
Yes, auto insurance can be bought online. Car insurance shopping lets you compare offerings and prices from multiple vendors quickly, and it makes it easy for you to specify features you want and filter out those you don’t need.
Is it cheaper to buy car insurance online?
Yes, it is cheaper to buy car insurance online than to buy it through an agent. This is simply because agents/brokers are likely going to charge you an extra fee or commission for finding you a policy or they will simply try to convince you to buy more coverage than you need if their commission is tied to how much premium you purchase.
Is it good to buy auto insurance online?
Buying auto insurance online is good because insurance plans online generally quote a lower premium than offline ones.
What determines the price of an auto insurance policy?
The amount you’ll pay for auto insurance is affected by a number of very different factors, some of which are listed below. Note that, not all companies use the same factors and it is wise to do a comparison before committing to one.
Comprehensive Insurance
The Comprehensive Coverage is the fullest, most complete insurance in Singapore that shields you from the daily dangers you face for yourself, your car and others while on the road. It also provides you with extra protection by offering coverage for rare incidents like fallen trees, floods, and natural disasters.
The right car insurance policy for you will depend on what kind of driver you are, so it’s important to have a clear idea before purchasing any type of car insurance coverage. When you choose comprehensive car insurance, you have the choice between our 3 driver plans and all of the optional benefits we have to offer. You also have the option to extend your coverage with popular options like Loss of Use, Modification Cover, and 24-Hour Breakdown Assistance. This type of comprehensive protection is ideal if you want peace of mind when driving around with your family in tow.
Third Party Insurance
What is third-party insurance?
Third party insurance is the one that covers the insured liability for death or injury to a third party or loss/ damage of a third party’s property in the event of an accident. Third-Party Only plan offers basic protection. Therefore it is recommended to drivers of cars at the end of their COE life as well as those who are experienced and familiar with the roads of Singapore. TPO insurance might also be an option to consider if you rarely use your car, or if you only use your car for safe and short trips with minimal risks of car accidents.
Does third party insurance cover my car?
No, Third-Party Property Damage does not cover your car. It only covers the costs of damage your car causes to someone else’s car or property.
There are so many car insurance companies online that you can choose from, this will help you easily protect yourself from the various risk that comes with driving, all you need to do is go through the different insurance options/quotes online and select what works best for your specific needs.
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Ah Hei