7 Ways to reduce car insurance premiums in Singapore

7 ways to reduce car insurance premium in SingaporePerhaps the first adjective you’d associate with the automobile in Singapore is “expensive”. From the down payment and the running costs to car insurance premiums, a car can be a financially ruinous exercise. NCDs do help in reducing car insurance premiums but there are other ways to further reduce the damage!

The reality is that NCD savings are significant and can save you a pretty penny. It will, though, take a couple of years for you to even enjoy tangible savings. Even that is not guaranteed; a minor fender bender can wipe out your hard-accumulated NCD, and its back to square one.

There are other ways to reduce car expenditure – our application provides you with tips and tricks to save cost. But if you would like to fork out less dosh, do bear these 7 tips in mind come time for renewal!


7. Opt For Higher Excess

Excess, in essence, is the sum of cash you need to fork out of pocket before insurance would payout. One way to reduce your premium is to opt for a higher excess. This means that you need to pay a smidge more before insurance would pay for your repairs. Again, this is a balancing act; opt for the highest excess figure you are comfortable paying for and nothing more. This should net you some premiums savings, and this figure should accrue interest in your savings account. That is until you, unfortunately, get into a collision!


6. NCD Protectors

NCD Protectors allow you to make a set number of claims without wiping out your hard-accumulated NCD. These are often available as an add-on and can cost you up to a few hundred up front. If you are accident-prone, this may be well worth the investment in the long run!


 5. Keep A Lookout For Promotions

Insurers are all vying a lion’s share of the market, and are fairly generous with promotions. You just need to know where to look. A good place to start is with your existing insurer for your other policies, and/or any tie-ups with financial institutions. Some insurers can also offer you an attractive discount if you have other policies with them!


4. Cashback And Points With Credit Cards

Do read the fine print on your credit card, as not all cards are eligible for cash back or points for bill payment. This probably offers the least significant savings, but every bit helps doesn’t it? For maximum accruement of points, look for more versatile cards that give you cashback for non-automotive related expenditure!


3. Avoid Auto-Renewing

A quick way to save some serious cash is to not opt for auto-renewal of your existing policy. Each insurer will alter their coverage slightly yearly, and premiums may be affected as a result. Your needs may also change, so looking around for solutions from other providers can literally pay! For a more convenient solution, you can rely on our app! UDrivers help you compare quotes from our insurance partners for a better deal for our end users!


2. Being A Safe Driver

It pays to drive save – literally. You obviously pay fewer fines and even avoid prosecution in court, which can give your wallet a much-needed breather. Having no points on your license also means insurers will give you a 5% discount for being a safe driver! That ought to make you think twice the next time you are tempted to put your foot down!


1. Downgrading

Sometimes, downgrading may be the only solution to ease your high-premium woes. Certain categories of cars will automatically net you high premiums – think big capacity Euro saloons and sports cars. Drastic measures to cut cost in this department will only get you so far. Switching to a cheaper commuter car may be the quickest way to pay less for insurance. Again, this route is not for everyone; you must decide if the cheaper vehicle really is worth the downgrade!


Other Ways To Save Some Cash!
There are other ways that to save some serious cash that may not be that obvious at first glance. For instance, adding a “named driver”. This allows the said driver to enjoy the same excess as the main driver should an accident occur.

Opting for authorised workshops can also help lower car insurance premiums. This means that you’ll have to get your car repaired at a workshop as authorised by your insurer. A third-party plan can also present significant savings. Do only entertain this if your car is fully paid off, barely used, or an older vehicle with little value left. Also, off-peak cars have lower premiums too. If you are really only using it on the weekends, this is a realistic avenue to entertain!

Here is the harsh reality – cars will forever be an expensive proposition in Singapore. Drivers are forever searching for ways to reduce their monthly inlay. If you shop smart and drive safe, insurance can be a brilliant way to cut some cost. For a more realistic and sustainable way to keep your car on the road, consider using our services! UDrivers would like to take the stress and frustration out of car ownership. Using modern smarts, competitive quotes can be generated on a whim, for the best prices on servicing. Our application will give you rapid access to the stuff you need, for rapid help when you need it the most. It is available on both Android and IOS, so click on those links to download the UDrivers app now!

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