Factors on Which Singapore Car Insurance is Calculated
Let’s face it, no one is excited to buy car insurance as much as they’re to buy cars. In Singapore, everyone buys car insurance only because it’s compulsory. So, if it’s necessary to buy car insurance, it’s a good idea to learn more about it and then buy the most desirable one.
Factors on Which Singapore Car Insurance is Based
Singapore car insurance can cost anywhere from $700 to $1,000 or even more for an annual coverage. You should know that the premium of the car insurance will be calculated according to your particular car and many other factors. This is because insurance providers try to understand how likely your car can meet an accident and how expensive it will be for them. They look at the following factors to gauge their risk:
Your Age: Per se, your insurance premium can be the lowest at the age from 30 to 65. The younger you are, the costlier your car insurance will be.
Gender: Most insurance providers think that women are safer drivers and therefore, they charge less if the named motorist is a woman.
Marital Status: Married people are believed to be more responsible drivers and thus can sometimes get cheaper car insurance.
Occupation: An indoors office job can get you cheaper car insurance, whereas outdoor jobs like a sales-drive job indicate heavy car usage, and hence the cost of your car insurance can increase.
Driving Experience: The more your driving experience (4 years or more), the cheaper your premium will be.
Claims History: The fewer your car insurance claims in the past, the cheaper will be your premium.
No Claim Discount: For every year that you’ve driven and didn’t make a claim, you get 10% off. You can accumulate your No Claim Discount (NCD) up to 50% i.e. 5 claim-free years.
Certificate of Merit (COM) Discount: Some insurance providers offer a 5% discount on your car insurance premiums (after deducting NCD) if you didn’t get any demerit points in the past 3 years.
Model and Make of the Car: The more basic your car, the cheaper will be your premium. You’ll have to pay higher car insurance premium for SUVs, luxury cars and continental cars because parts of these cars are costlier to replace. Also, for large engine capacities and/or car modifications, you may have to pay higher premiums.
How Old is Your Car: The older your car (up to around 10 years), the cheaper will be your premium. But afterward the premiums will rise as your car begins disintegrating.
Car Usage: The lower your car usage, the cheaper will be your premium because chances of accidents are fewer due to low usage.
Understanding these factors, you can take the right measures to get cheaper car insurance. Happy shopping!