When it comes to a car, you may have your own preference which is either different or the same with other people. No wonder car companies have and continuously inventing new models to cater to the needs of every client. Once you have successfully purchased the car of your dreams, the next thing that you’d probably want is to take it out for a ride but before you do, it is a must to get car insurance first. In addition to the well-known fact that it is mandatory in order to drive your vehicle on the road, it is also a great way of protecting your valued asset should unfortunate things happen while you are on the road.
But how would you know you’re going after the best car insurance? With that, here are the important factors that need to be considered, especially if you’re in Singapore.
1. Choose your desired coverage
If it is your first time to have a car and you happen to be unaware of car insurance, it is important to know that Singapore’s Land Transport Authority mandates every vehicle to get car insurance. In Singapore, there are three different types of car insurance that you can choose to purchase: Comprehensive, Third-Party, Fire & Theft (TPFT), and Third-Party Only (TPO).
Third-Party Only is considered as the most basic coverage provided that it is intended to give the minimum coverage which the law mandates. This car insurance covers death and/or bodily injury to a third party, as well as damages to third party property, hence the name.
Third-Party, Fire & Theft, on the other hand, offer policies that cover your vehicle against theft, damage from attempted theft and damaged by fire ─ as what the name goes to imply.
Comprehensive, which is known as the well-rounded plan, not only gives the benefits of the two abovementioned car insurance coverage but also offers an extended plan for both the driver [and the passengers] and the car itself.
2. Policy Excess
Policy excess, which is more commonly known as a deductible, is a total amount of money that you (the insured driver) need to pay to the insurance company when making a claim. This goes like this, if you have an excess of $500 and the total repair costs happen to be $3,000, you are required to pay $500 whilst the remaining $2,500 will be covered by the insurance company. This aims to make sure that the person insured is driving cautiously on the road, so is to prevent unnecessary claims like minor dents and scratches.
On the other hand, you have to take note that the amount of excess payable varies from insurer to insurer, which is why it is always important to ensure you are comfortable with the amount that you need to pay should you happen to make a claim.
3. No Claims Discount (NCD)
Being a cautious driver not only saves you from the hassle of an accident on the road but also lets you enjoy awesome rewards from your insurance company, like the No Claims Discount (NCD). For each year of not making a claim, you can get to enjoy a 10% discount, which means if you go for five years without making any claim, a 50% discount will be granted when you renew your policy. In order to enjoy this awesome reward, you might as well start practicing safe driving.
4. Courtesy or Replacement Car
Getting in an accident is inevitable, which can happen even to the most cautious driver. Good thing, there are some insurance company that will replace your vehicle with a brand new one (of the same make and model) if your new car gets into an accident in which the vehicle is damaged beyond repair within a certain time frame.
On the other hand, if the damage is not severe, the insurance company might offer a courtesy car instead, which you can drive until your car is repaired.
5. Coverage in Malaysia
Given that Singapore and Malaysia are neighboring countries, you might want to get private car insurance which allows you to have coverage and roadside assistance extending across the Causeway. By topping up this policy to your existing coverage, you can be able to enjoy a quick road trip or a shopping trip to Malaysia without worrying about how to get back to Singapore should you be stranded in the neighboring country.
6. Authorized vs. Any Auto Repair Shop
Every car insurance company has a list of accredited car service and repair shops which you can go in case you need to fix your car. Before going to a car repair shop, it is important to check with your car insurance policy whether it sticks to its list of authorized repair centers or if it also allows you to get your car fixed at your preferred workshop.
7. Understanding the Terms and Conditions
Given that getting car insurance is a major transaction and investment, it is a must that you highly understand the written words (terms and conditions) on the car insurance policy that you’re signing up. By doing so, incurring penalties for any invalid claims you might make can be prevented.
In case you’re planning to a car insurance one of these days, Autoshield help you get the best quotations! Contact us through our customer care hotline 6385 0777 or send us SMS to 8588 9191, 8686 9991, 8688 9991, 8588 9991, 8866 9991, 8868 9991, 8668 9991.
