How Your Car Insurance Gets Determined In Singapore?

Car insurances depend on various factors around the world. Whereas in several countries, it is a matter of choice that the car owner gets whether or not to get their cars insured, it is different in Singapore. People who own cars in Singapore are required to get car insurance. Here too, there are certain factors upon which your car insurance is determined and calculated. Wondering what they are? Well, the list has been described elaborately for your convenience below.

How Much Risk Does The Driver Have To Put Up With?

If you are not quite a safe driver and the insurance companies are aware of the fact, they are going to charge you more. The premium of the car insurance is determined in Singapore depending on the risk that the insurers (car owners) have to take. Therefore, it costs you less if you are a safe driver. Also, once you are aware of the factors upon which they estimate you car insurance premium, you can navigate around your chances, find out the company that is best suited for you and then make up your mind. And get the cheapest car insurance in Singapore.

Model Of The Vehicle And Its Age

If the car that you have purchased is quite an expensive model in the market, make note of it beforehand to pay off more on your insurance. On the other hand, if you own a safer model that is priced quite less, the insurance company will consider that while calculating the premium. If you have a vehicle that is not found in the market anymore, it indicates that the model has become old. In such a case, you would be asked to pay more since older cars or vehicles are more prone to accidents as the engine capacity degrades, parts of the vehicle rusts etc.

What Is The Use Of The Car – Commercial Or Personal?

What is the nature of the use of the car that you have purchased or decided to purchase? Is it commercial or private? When you go for getting your car insured, these are the common questions that you are often asked. No doubt the insurance coverage for personal cars are lesser compared to ones bought with an aim to be used for commercial purpose.

Driving Experience

If you already have a decent driving experience and there are no demerits on your driver’s license, the law suggests that you can get cheapest car insurance in Singapore. Be a safe driver, follow the traffic rules well and let the insurance company have faith in your driving. The insurance company takes into consideration about the nature of your driving before striking a deal with you.

How Often Do You Make Claims?

Claims are made to the insurance company when you have had an accident yourself, got anyone else injured by your car or broken your car on road. The less claims that you make, the lesser would be your premium for car insurance. However, if you make frequent claims; it gives a very bad impression on you as a driver. And your premium rate would consequently go up.

Other Factors

Other than the factors that have been mentioned already, there are certain others upon which the insurance amount depends. Below is the list for it:

  • Age of the insurance seeker.
  • Sex and occupation of the driver (in case of private cars).
  • Marital status of the insurance seeker.
  • Types of cover, which includes – third party cover, theft, third party fire.

Therefore, it is wise to be aware of all the possible factors before knocking the door of the insurance company.

How Do You Choose?

Undoubtedly, it is best if you are aware of the factors prior to seek for insurance. However, even if you are not – there is nothing to worry. You can shortlist the names of insurance companies in Singapore, compare the quotes and choose the one that has the cheapest offer. Make sure to enquire about their customer service and that you are not kept on hold when you actually claim for the money.

Investing a little time to make the choice right for your car insurance can prove profitable in the future. Therefore, choose wisely and enjoy a safe ride.

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