8 Things to Know About Car Insurance in Singapore

When you are in Singapore you might wonder why you need car insurance. 

After all, cars come with many safety features, so you are fairly safe. However, you cannot control other people on the road and there are many things that can happen while driving in Singapore. This is why it is important to make sure that you have proper car insurance coverage. 

When considering car insurance there is a lot of information available that can make you want to just give up. Here are eight things that you should know about getting car insurance in Singapore that will make things a bit easier for you. 

Importance

First, you may think that car insurance in Singapore is not that important. However, that is simply not the case. Singapore requires you to have insurance before you are even allowed on the road. If you are caught without car insurance you can face large fines, time in jail, and even lose your license.

In addition, car insurance helps with financial issues when it comes to damages and injuries that might occur if you are in an accident. This offers protection not only to you, but to others on the road as well. 

Car Insurance Types

In Singapore there are three types of car insurance policies. These are third part only policies, fire and theft policies, and comprehensive insurance policies. 

The third party only policies will only cover an affected third party in an accident. This includes other drivers, pedestrians, your passengers, and property that is damaged. Your car is not covered by this type of policy. In Singapore, this is the most basic type of car insurance policy that you can have. 

Third party car insurance policies are ideal for those who drive an older vehicle that can easily be replaced, people who do not drive very much, and for those who want the lowest cost policy available. 

Fire and theft policies are similar to third party car insurance policies, but have a few more benefits. This type of policy will cover liabilities to any third party, but if your vehicle is stolen or damaged by fire, this policy will cover those costs as well. Damage that comes from a third party such as arson or vandalism will be covered as well. 

This type of policy is good for those who live in areas that have a higher crime rate and want a bit more coverage or protection for their own vehicle. 

The third type of insurance policy is comprehensive and as the name suggests, this coverage offers you the most protection. Comprehensive insurance is the most expensive type of policy because it not only covers any damage to a third party, but also provides coverage for your vehicle as well. 

If you drive a newer or more expensive vehicle, you should consider a comprehensive insurance policy. This is also a good choice if you do not want any financial burdens if you are in a big wreck. People who drive often should consider a comprehensive policy as well.  

Factors that Affect Premiums

There are several factors that are considered when it comes to the cost of your car insurance in Singapore. Some of these include:

Age and Sex: it has been found through research that male drivers are more likely to be in an accident than females. This means that males will typically pay a higher price for insurance. Additionally, it is found that drivers who are 21 to 29 have higher involvement in accidents, and the price for a policy for people in this age range tends to be higher as well. 

Experience and History: people who have been driving for a longer period of time will typically get premiums that are lower. Driving history also plays a role and someone who has not been involved in any accidents or had any infractions will typically have lower insurance premiums. 

Car: the car that you drive can impact your premiums as well. The more expensive or luxurious your vehicle, the higher your insurance is going to be. 

Mileage / Frequency of Usage: people who drive more are more likely to be in an accident and because of this will pay higher premiums.