Do You Really Know What Your Car Insurance Covers? Learn more here.
In Singapore, auto car insurance or motor insurance is essential, as it is against the law to drive a motor vehicle on the road without a valid insurance policy. There are plenty of car insurance plans available, but before you getting one, you should find out as much as you can about them. MoneySmart and DirectAsia are some of the car insurance online platforms that offer useful reading material on the topic.
Here are some things you definitely need to know to start.
Third Party Cover
This plan offers the most basic protection for the driver on the road. It meets the minimum legal requirement to drive under Singapore law. Being the insurance policy that offers the least protection among all the insurance policies, it is the cheapest motor insurance plan available on the rack. The plan only pays when damage is caused to another person’s car.
Third Party/ Fire & Theft
Such a car insurance plan covers more than just damage to the third party. It also covers personal damage such as vandalism, fire and theft of the vehicle. When the car is subjected to external damage like fire and theft, you still get money from the damage incurred. As it covers a greater area of things, it is slightly more expensive than the third party cover policy. This plan is compulsory for owners who are still financing cars that are more than 10 years old.
Comprehensive Coverage covers the broadest scope when it comes to the area of car insurance. These plans cover death or injury to other parties, damage to other parties’ property, fire, theft, accidents, and medical costs arising from the accident. This plan is usually obtained by owners who are financing cars that are less than 10 years old.
At the start of this new year, is one of your new year resolutions to drive safer? Or to find a better car insurance plan? Here is a breakdown of the car insurance deals you can obtain from different insurance companies.
No Claim Discount (NCD)
As a driver, you are entitled to a no claim discount that is capped at 50%. Different insurance companies offer attractive No Claim Discounts for drivers that reward them for being safe.
DirectAsia’s NCD60 offer
Direct Asia Insurance offers a total NCD of 60%. For drivers that have held NCD50 for at least the last 5 years, they will get an additional 10% discount on their car insurance base premium. Being the first of its kind in Singapore, it intends to give more savings to the safest drivers in Singapore. Drivers can maintain their NCD status through the purchase of NCD protection for a fee. That way, when a claim is being made, the NCD protection will maintain the NCD level for the following year. It differs from other insurers by offering an immediate discount for the safest drivers. Under other ‘for life’ NCD schemes, safe drivers only see the benefit when they make a claim. With such a scheme, it prizes the safest driver and rewards them. If your driving records are relatively consistent, going for this plan will be the best deal for you.
FWD’s lifetime NCD Guarantee
FWD Singapore offers a lifetime NCD guarantee where the NCD gets to be maintained as long as you stay with them. Repairs are guaranteed at FWD premium workshops until your car turns 10 years old. FWD Insurance plans are comprehensive, customisable and affordable. Other benefits also include 24-hour assistance, out-of-Singapore coverage. If a lifetime NCD guarantee and a strong repair support is appealing, this is the plan for you.
However, it is not always the case that NCD percentage translates directly into the equivalent percentage of discount on your premium. Different insurance companies assign different amounts of importance to the NCD so be sure to check how much NCD you will be getting.
According to ValuePenguin, insurers like NTUC Income, and Etiqa would even offer you greater discounts in addition to your NCD, if you install a telematics device in your car that tracks your speed, mileage, and other aspects of driving behavior, to prove that you’re a safe driver. The telematics device is given to you when you sign up with them. In light of all these discounts that car insurers are offering, being a safe driver certainly has its perks.
Comparison of User Experience on different platforms
To find the best insurance policy, you no longer need to look all over the place. The emergence of integrated platforms to search for insurance quotes have made it easier to compare car insurance quotes and find a plan with the best value for money.
I decided to try them out and see how comprehensive and user-friendly these platforms are.
GoBear is an algorithm-based platform that works out the best comparisons between insurance products, simplifying the decision-making process of choosing insurance products. It offers a comparison suite of products such as car, health, life term insurance etc. As a user on GoBear, it was relatively hassle-free and easy to find out the insurance quote I could get. To generate a quote, I put in minimal information where they asked me for my age, gender, driving experience, no claims discount and car model. Input these details and you are on your way to receiving a quote from the different insurance companies. You are also able to customize your choices by choosing based on plan type and accident coverage. In terms of ease, this is one of the easiest platforms to find the right car insurance for you.
Ease of usage: 4/5
CompareKaki is Singapore’s insurance comparison portal managed by MAS-licensed financial advisor SingCapital. It helps users compare travel and motor insurance from different insurers and gets them the most suitable deal.
Using CompareKaki was more troublesome compared to Gobear in terms of ease of usage. This is likely because it is much more comprehensive in its analysis. While attempting to access a quote, users had to input extensive personal information such as their nationality status, the number of demerit points accumulated and even license pass date. As much as there are many details to provide for obtaining a quote, it is comprehensive in its quotation. I will highly recommend it if you are looking for a car insurance quote that is detailed and thorough in its entirety.
Ease of usage: 3.5/5
PolicyPal is an insurance app that helps the user manage insurance policies at affordable policies. If you’re always on the go and in need of finding insurance quotations, PolicyPal can help you get there. To get a quote from PolicyPal, one has to submit comprehensive details such as the vehicle’s name, model and personal details. After submitting these details, a quotation will be returned within the next 48 hours. It is a simple process but I found that there were too many details that needed to be filled up. This is similar to CompareKaki where one has to submit multiple details to get one quote. Nonetheless, the quote produced is comprehensive and the quote is easily accessible via the app. Getting this app will be useful for car owners who prefer convenience at their fingertips.
If you happen to be a PolicyPal user, there is good news for you! PolicyPal will be officially launching a cashback programme on the 1st February 2018 where as a car owner, you’ll stand to get 10% cashback on your motor insurance.
Ease of usage: 3/5
Over the years, the insurance game has changed with the rise of different platforms and competing insurance companies providing attractive deals for safer drivers. With the rise of such platforms, it is now more affordable and efficient to handle your car insurance online with these platforms and opportunities.