5 Vehicle insurance myths

5 vehicle insurance myth

As most of the vehicle owners out there are not insurance experts, vehicle insurance can seem complicated, resulting in many myths surrounding it. Therefore, we are here to debunk some of the vehicle insurance myths.

1. The price of your insurance is determined by the colour of your vehicle

Although red is a colour of anger and violence, driving a red vehicle will not be a factor for the price of your motor insurance. The price of your motor insurance will be based on the car make, model, engine size, body type, vehicle’s age, driver’s age and also driving record history. So, fret not! Driving any vehicle colour will not cost you more or less.

2. In any case of a total loss of vehicle, I will be paid what it originally cost

This is a total misconception. Depreciation will be taken into consideration when faced with a total loss. Depreciation is the decreased value of an item over time or wear and tear. Depending on the type of policy, you may get money for your loss but it is highly impossible for you to be paid the original purchase price.

3. If someone else drives your vehicle and got into an accident, his or her vehicle insurance will cover the damages

The vehicle insurance covering the vehicle is considered the primary insurance. So nonetheless, the vehicle owner’s insurance is what will serve as the primary coverage no matter who is driving. Therefore, please make sure to know the rules before allowing someone else to drive your vehicle!

4. Changing insurer will cause me to lose my No Claim Discount (NCD)

No Claim Discount (NCD) is a reward from your insurer for your good driving. You get an increase in your NCD every year that you don’t make any claim.

Good news, the NCD goes wherever you go! The only thing is that you have to renew it 90 days within the expiry of your old insurance policy.

5. The vehicle insurance policy only covers me for driving in Singapore

Most Singapore motor insurance provides coverage in West Malaysia and up to 80km from the border of Thailand.

Get a quote for your car insurance with UDrivers now! If you have any other doubt feel free to call us at 88690022 or send in your enquiry to contactus@udrivers.sg and download the UDrivers app to gain more benefits for your vehicle, such as quotation prices for servicing of your vehicle when the need arises.


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