Carro’s Guide: Insurance
For first-time car owners, insuring your car would be the next most difficult thing after buying your car itself. Car Insurance, like any other insurance, varies across a wide range of prices and package types. The basic concept of the price of insurance is that the higher the risk exposed to the higher the premium you need to pay to insure your car. This is Carro’s Car Guide about Car Insurance for Beginners.
Section B: What to Look For
1. What do you want to be covered?
This is basically the insurance packages that are offered by the company. You have to make sure you know what you are buying. The car insurance should try to cover most of the possible risks exposed to. However, do not oversubscribe to an excessive insurance as it will cost you a lot of money.
In Singapore, insurance has to at least cover third parties in a case of an accident.
Many insurance companies offer packages that allow you to get cheaper premium by subscribing insurance for more than one year.
2. Which add-on coverage you want to add?
Add-on basically is the additional coverage on top of the subscribed package. This will enable you to get more thorough protection without paying for excessive coverage.
3. The excess
The excess is the price that you have to pay up front at the workshop in the case of an accident. This excess acts as a form of a down payment that allows the workshop to start fixing your car. This excess will be reviewed by the company and if the insured is not at fault this excess will be returned.
4. Number of car drivers
A car can often be driven by multiple drivers (eg. In a family, both parents often drive the car). A higher premium will be incurred in order to cover the drivers that happen to drive the car
5. Car makes and model
As discussed in section A, the more premium cars would have a higher premium due to its car type, car engine, and spare parts, this translates to the higher maintenance and fixing cost in case of an accident.
6. Vehicle usage frequency
Similar to Nature of Employment at section A, the higher the frequency(outdoor jobs) would pose a higher risk of accidents, hence higher premium and vice versa.
7. The NCD
As discussed in section A, with higher NCD your premium is cheaper.
8. Driver’s claim history
Similar to section A, this suggests that you are a safe driver, in which might highly lower your premium due to the lower probability of the claim.
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