If you are planning to give your son/daughter a car as a token of appreciation for doing great in his/her studies or as a birthday present, it is important to be prepared with the hefty amount of money that you will need in purchasing a vehicle. Once this is settled, the next important thing that you will need is finding the best car insurance company in Singapore.
Why does getting your car insured is important?
In case you want to experience the fun and exciting feeling of driving a vehicle on the public roads in Singapore, it is important to note that you must possess car insurance. This isn’t just a luxury, for, in fact, it is mandated under the Motor Vehicles (Third-Party Risks & Compensation) Act. Insisting to drive either a car or a motorcycle without car insurance can lead to a fine of up to $1,000, jailed up to three months, or both. When things get worse, the driver who will be caught driving on a public road in Singapore will be disqualified from holding or obtaining a driver’s license for the 12 months since the date you committed an offense.
What are the types of car insurance?
When it comes to insuring your vehicle, it is important to note that there are three types of car insurance to select from, including the third party only insurance; third party, fire, and theft, and; comprehensive car insurance.
- Third Party Only Insurance: This type of car insurance is for those who want to save money by means of going for the lowest cost. Aside from covering your car from damages, it also responsible should you get involved in an accident which causes death or injury to passengers and third parties.
- Third Party, Fire, and Theft: In case you happen to knock into another car (third party) and causes damage to it, this car insurance policy takes in charge. This kind of car insurance policy also covers damages should your car catch fire, get vandalized, or stolen.
- Comprehensive Car Insurance: Although this is considered to be the most expensive option when it comes to car insurance, it is also the one which offers the most coverage. In addition to giving coverage in case, your car gets damaged from an accident, It also covers your vehicle in fire, theft, and vandalism, regardless of the fact that it is your fault or not.
How to keep the rates for your teenage driver as low as possible?
Given the relatively high cost of car ownership in Singapore, you, as a parent, might be thinking of ways on how you can save when it comes to purchasing private car insurance. With this, here are some tips to keep your car insurance rates as budget-friendly as possible.
1. Good Student Discount for teen drivers
Believe it or not, getting good grades not only has a high potential of receiving an honor at the end of the school year, for it can also benefit your teenage son or daughter car insurance. As a matter of fact, most insurance companies offer a discount for good student discount for those who make at least B-average (3.0 on a 4.0 scale), due to the notion that good students are, on average, tend to be better drivers.
Remember to have the most recent report card of your teen when purchasing car insurance.
2. Opt for the right vehicle for your teenage driver
Considering that your teenage son or daughter is just an amateur when it comes to handling a car, choosing the right vehicle for him/her is critical. Instead of investing in a luxurious kind of car for your teen, it would be a perfect choice to look for a car that ranges in age from 10 to six years, yet still in an excellent condition.
3. Share a car with your teen
In case you finally allow your teen to drive the car, yet at the same time want to save some money, sharing a vehicle with your teen is a great option. In a case like this, you can list down the name of your teenage driver as a secondary or occasional driver.
4. Select the right coverage for your teen
Purchasing car insurance is not something that you do without a deeper understanding, provided that you can come across several companies offering various coverage and policies. For instance, given that physical damage is the most expensive coverage for a teenage driver, avoiding physical damage coverage like comprehensive and collision can potentially save you a lot in terms of car insurance premiums.
5. Decide whether to insure on parent’s policy or a separate policy
Since the rules and prices for car insurance vary from each insurance company, deciding whether to get your teen insured on your policy or get him/her a separate policy seems to be very tricky. By adding your teenage driver to the policy you currently have, he/she can be able to get parent’s (your) significant discount like multi-car and multi-policy. However, including your teen on your policy can lead to paying a higher rate considering that some insurance companies will have to rate a teen on all the vehicles in the policy. This is why getting your teenage driver a separate policy, at some point, makes a good choice as the insurer will only charge for the vehicle being driven by your teen.
In case you need quotations among the best car insurance companies in Singapore, Autoshield can be your guide! Reach us through our customer care hotline 6385 0777 or by sending SMS to 8588 9191, 8686 9991, 8688 9991, 8588 9991, 8866 9991, 8868 9991, 8668 9991.
