In Singapore, if you are driving a vehicle you must have car insurance. Since car insurance is mandatory in Singapore, most people do not think much about how much it costs because it is just something that they have to do. However, there are many ways to save money on car insurance and you should look into these so that you can save money on your monthly expenses. Here are a few ways that you can save money on your car insurance in Singapore.
Most of the time people in Singapore choose to buy their car insurance policy directly from the dealer. Since not purchasing insurance through the dealer comes with a fee, it might make sense to purchase your policy through the dealer for at least the first year. However, the insurance policies that are offered by a dealer are typically much more expensive when compared to the average cost of other insurance policy products that are available in Singapore. For this reason, it is important to shop around for a car insurance policy. Taking the time to do this could save you $1000 or more by simply switching to a lower option.
When you are shopping for car insurance make sure that you get quotes from at least three or four insurance companies. This will give you the option to compare the prices and features from the different companies that are available. Direct Asia Car Insurance Singapore offers a quick quote on their site so you will know roughly how much it will cost you. Remember, the cheapest option might not be the best, so study the terms of the policy carefully before you make your decision.
If you are in an accident and the damage to your vehicle is minor, you might want to consider a private settlement. This means that you would simply pay for the damages yourself instead of reporting it to the insurance company. This can be a good thing because you are going to have to pay out your deductible anyway and if the damage is less than your deductible, you are reporting an accident for no real reason as it is going to cost you the same amount. In addition, when you report an accident to your insurance there is a chance that your premiums are going to go up.
No Claim Discount
A no claim discount is often offered to people who do not have any claims in certain amounts of time. The longer you go without a claim, the higher the discount becomes. In fact, you can save as much as 50 percent on your car insurance by not filing any claims in five years. Typically, a renewal discount of ten percent is provided after a year with no claim, this goes up to twenty percent after two years, thirty percent after three years, forty percent after four years and fifty percent after five years. It is often capped at this amount.
Dual Year Policies
Most insurance policies are one year policies. However, there are some insurance companies such as Aviva that now offer two year policies. One of the reasons that you should consider this is because you are committing to at least two years of premiums, you will receive a large discount on the price. You can lock in the price for two years. On average it was found that a thirty year old male can save about S$50 a year by choosing a two year policy. Another positive of choosing this option is that it guarantees your premiums are not going to go up over the next two years.
Safe Driving Discounts
Many insurance companies throughout Singapore have introduced apps that track your driving habits. These apps keep track of your speed as well as how much you drive and other metrics. If you download this app your insurance company will allow you to earn points which can convert to large discounts on your insurance premiums. This is a great way to save money.
Insurance companies offer other deals on policies as well. It is a good idea to ask for good driving discounts, dual insurance coverage discounts, and any other type of discount the company might offer.
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