How to Lower Your Car Insurance

 

black and white car

Car insurance is notoriously expensive in Singapore. Ask any driver in Singapore and they will remark that the cost of their car insurance alone could probably be used to afford more than 10 trips to the petrol station. With car prices being so pricey, how then do we lower our car insurance premium?

Age and Driving Experience 

Younger drivers and or new drivers pay more for their car insurance. This is because they are less experienced and mature on the road, which tends to lead to accidents on the road. Younger or inexperienced drivers could perhaps wait a few more years before getting a car. 

 

Alternatively, young drivers can try to fit into their family’s car insurance so that the premium would be averaged out by the more experienced driver in the family.

Accidents

Having a road traffic accident is like a death sentence to your car insurance premium. You may have a perfect record on your driving license, but a single accident can significantly increase your premium. This is because the insurers now have a reason to not trust that you will be safe on the roads and that another accident is imminent. 

 

Always remember to drive defensively on the road and have a strong situational awareness. If you do not have any accidents in the past year, you will be eligible for no-claim discounts(NCD). This will significantly reduce your premium by up to 50% if your NCD is 5 years or more.

Cheaper Vehicle

The price of your vehicle also makes a big difference in your car insurance premium. Expensive or luxurious vehicles often have expensive parts or components that require specialised skills to fix. Factoring these considerations in, the insurers will charge a higher premium.

 

However, there is a paradox in this conclusion as cheap cars can also have higher premiums. This can be due to the fact that the manufacturer is a less reputable company with less stringent quality or safety standards. This increases the risk of severe injury during an accident or more repairs needed thus leading to higher premium prices.

 

Choosing a car from a reputable company that is safe and cheap to repair will help lower your car insurance premium.

 

Electric Vehicles (EVs) Are More Expensive

EVs are still relatively new and there is not much data that shows the life cycle. Furthermore, some EVs are packed with technology which can make it expensive to repair or replace. Though the insurance is cheaper, there are rebates available that make the initial cost of ownership low.

Usage-Based Insurance (UBI)

If you do not use your car that often, UBI would be good as the premium amount can be lower if your usage is low. However, not all insurers offer UBI, so do your research before finding one.

Conclusion

Car insurance is an important part of buying a car and it can get expensive. Using the above steps, it is possible to lower your car insurance premium and most drivers are probably adhering to some of the recommendations already. Stay safe and be careful while driving on the road. Find out which car insurance to get here.