4 Reasons it is Mandatory to Purchase Motor Insurance

Given the fact that you are living in Singapore, wherein having motor insurance is ordered by the law, in fact, by the Land Transport Authority, purchasing this kind of insurance for your auto should never be an argument. But in case you belong to the statistics of drivers who are curious as to why it is a mandate to get auto insurance, below are the good reasons behind.
1. It is required to have a car under your name
If you’re planning to purchase a new or used car, a cover letter from the insurer is needed in order to distinguish whether you have a valid policy. In case you don’t have one yet, you should purchase car insurance from a trusted company, which will be presented to the Land Transport Authority. By doing so, the state you’re living in can guarantee that every vehicle on the roads of Singapore is insured; however, with the exemption of foreign-owned cars like the embassy vehicles.
2. Liability Coverage
Getting involved in a car accident is no joke, hence, the state requires that every vehicle is insured. In line with this is the Third-Party Risks and Compensation for Motor Vehicles Act, which is an Act Liability Only policy that covers against the third party costs associated with injury or death in an accident.
In addition, given the fact that motor insurance is a compulsory encourages motorists to insure themselves considering it is worthy for as long as they are (including their property and health) secured. If it is not mandated, other automobile owners would be asking themselves why they would invest to premiums while other people don’t give even give a care about purchasing car insurance.
3. Car insurance serves as great collateral
Since Singapore is one of the countries which have a high standard of living, it is not surprising to know that purchasing a car could cause you an arm and a leg. In some cases, there are people who are considering taking a loan from banks in order to buy your desired car. On the other hand, your target bank for the loan would definitely ask for collateral in return, and in this point, the car itself is usually taken as a guarantee. That is why acquiring comprehensive motor insurance is a big factor to have the loan approved because there will no lending company who would vest interest in repossessing a car with substandard insurance.
4. Mandatory motor insurance promotes safer driving
Having auto insurance should not be deemed as a guarantee to drive carelessly considering there your insurer can help you sort things out once you get into such accidents, because all insurance providers want their clients to be safe and not the other way around. Thus, motor insurance companies offer benefits like the No Claim Discount (NCD), which trims down the cost of mandatory auto insurance. For each year that a driver has not made any claim, the insurer will give a discount of up to a maximum of 50%.
As for the “risk drivers”, insurer providers will raise premiums in return. So, if you want to save money and keep yourself away from headaches caused by being involved in road accidents, maintaining a normal speed and taking extra care are a must.
For those who are looking for a trusted partner that can quote and compare among several auto insurance companies, Autoshield can be your guide. Contact us via our customer service hotline 6385 0777 or you may send us SMS to 8588 1688, 8588 9191, 8686 9991, 8688 9991, 8588 9991, 8866 9991, 8868 9991, 8668 9991.