Buying car insurance is a must if you own a car in Singapore.
Car insurance offers vehicle owners protection in the event of a claim. However, many car owners are faced with a constantly rising premium.
Just how can car owners save on their car insurance premium, if at all?
Let me share 5 ways how you can cut your spending on your car insurance premium.
1) Use The No Claim Discount (NCD) Protector To Enjoy Savings
Most insurers offer car owners the option to purchase the No Claim Discount (NCD) protector at a nominal fee if they have NCD of 50%.
NCD protector is only applicable to the first claim made under the policy. The claim refers to any damage claim for yourself or any third party claim made either entirely or partially on the fault of the car owner or driver.
Buying a NCD protector is particularly useful as it protects your NCD from being reduced for any claim made under your policy. Let’s say you have a 50% NCD and there is a claim made under your policy, you will suffer a 30% drop in your NCD.
The 30% reduction can potentially mean losing a few hundred dollars in saving upon your next renewal.
It makes sense to pay a nominal sum to include a NCD protector than to lose few hundred dollars when you experience a reduction in NCD.
However, do take note that the NCD protector is not transferable to another insurance company if you decide to switch insurer.
2) Insurance Companies May Give You A Lower Premium For Having A Built-In Camera
Some insurers reward car owners with cheaper premium when they install built-in cameras in their car. Installing an in-car camera not only helps you save on your premium, it also potentially protect your NCD. Why is it so?
When an accident happens, insurers will rely on the accident statements and photographs to resolve the claims. The tricky part occurs when both accident statements are conflicting accounts and the authorities cannot determine who is at fault.
In the absence of concrete evidence, the insurer will likely resolve claims on an equal liability basis.
This will result in the NCD being reduced and car owner will be faced with increased premiums upon the next renewal.
By installing a built-in camera, the video footage can take a lot of guesswork of out an accident. If the video footage captured by your camera confirms that you are innocent, your insurer will reject the claim and your NCD remains intact.
In this way, you will not be at risk of increased premiums due to loss of your NCD.
3) Buying Your Car Insurance Online Is Cheaper
In recent years, we see more and more insurance companies offering car owners the option to purchase their car insurance online.
When car owners purchase their car insurance online, the insurance company will save on the commission paid to their agents or brokers and this translates into savings for you as well.
4) Pay Less By Taking Advantage Of Staff Discounts
Before you purchase any car insurance, remember to ask your friends or relatives who may happen to work in insurance companies offering car insurance. Approach them and see if they are able to get you a staff discount.
Typically, a staff discount helps friends save 10% to 20%, which is pretty decent if you think about it.
5) Accident-free Car Owners Pay Less
Driving on the road involves risk. Accidents are unpredictable, but they are the main cause of NCD reduction and premium increase especially if the fault lies with the car owner.
Some of us may not be consciously aware that the way we drive is the underlying factor why accidents happen. Here are some ways you can improve your ability to remain accident-free:
- Getting stuck in traffic jams can be frustrating and emotionally draining if you are rushing for time. If you know that you will be heading for a particular stretch of road notorious for being chronically jammed, be prepared to set off at least 30 minutes earlier.
- If you are not feeling well and are on medication, take public transport instead. Driving while under medication is risky if the medication affects your judgment on the road.
- Do not tailgate. Most people successfully avoid accidents by keeping 1 to 2 cars’ length from the vehicle in front. This provides you with ample time to brake and avoid accidents.
- Stay alert at all times when driving. Do not assume that the car in front will move off once the traffic is clear.
- Be patient and do not take for granted that vehicle in front will move off once the traffic light turns green.
Practicing safe driving not only protects car owners from potential accidents, it will greatly reduce the possibility of you paying higher premiums after an accident.
So if you want to enjoy savings on your car insurance premium, do use these 5 easy tips in your life.
[feature image credits: monkomarok.com]
Share these useful tips with friends who are looking to become car owners!