No one will ever be excited when it comes to car insurance renewal and the only reason, we purchase car insurance is because it’s compulsory. However, you can have a choice to lower your car insurance premium, and we are going to tell you how to get the cheapest car insurance possible. First and foremost, you can first start off by reading the factors that will affect your insurance premium.
Shop around to find the best price
Don’t get lazy and stick to your renewal. Go around and get quotations, different insurers cover differently, and the prices might defer. However, picking the cheapest car insurance policy is not always the best idea. Cheap insurance is worse than no insurance when you are underinsured because you are just throwing money away.
Adjust your excess
A low premium can sometimes be accompanied by a high excess (the amount you must pay upfront before the insurer will start paying) and/or horrible conditions. Make sure to adjust your excess to an appropriate amount so that both your insurance premium as well as your excess is balanced.
Choice of workshop
If you don’t mind being restricted to a list of authorised workshops, you can get a cheaper rate. If not, you can select any workshop which will increase your premium by a little.
Additional drivers (e.g. your children or spouse) are available, but they will cost more. Add only if it is necessary in order to save on premium.
If you really have to add a named driver, to lower premiums, you can increase the age limit (e.g. 30/35/40 years old and above) if you don’t need to cover a younger driver.
Select TPO (third party only)
The minimum requirement for car insurance in Singapore is TPO. Since the coverage is limited to damage to other people’s cars, it’s cheaper. However, you cannot claim damage to your own car.
In general, comprehensive car insurance is more costly, but it covers you for pretty much anything that might happen to your car and anyone else involved as well. This is the type of car insurance policy that typically covers the widest range of incidents, such as flooding.
TPO might be a good option if your car is at least 10 years old and paid in full. It might not be an option if you bought the car on a bank loan or if you’re still paying off the loans. A Honda snarled around a tree is not something that a bank would want to repossess.