Everything Singaporeans should know about car insurance but probably don’t

Photo: Neajjean/Flickr
Photo: Neajjean/Flickr

Presented by BUDGET DIRECT INSURANCE

Presented by

 

Now that you’ve invested a small fortune on a car, getting car insurance should be a no brainer, right? Well, yes – because it is legally mandatory and also very, very important. But most of us think car insurance is super complicated and expensive. Allow us to bust these myths once and for all.

Who even reads their insurance policy?

Let’s start by seeing how many of us read more than the occasional celebrity tweet. Reading your insurance policy and going through the different things offered seems like a chore but hey, you gotta do what you gotta do to protect yourself in the event of an accident.

But even though we spend money on it every year, many drivers don’t exactly understand what the heck is going on insurance-wise.

Most insurance policies are pages and pages of long words strung into confusing sentences, but is it really that complicated? Introducing the biggest myth of car insurance: it’s so complicated that you need an agent or a broker to manage it for you. Hello, don’t you know that costs you an extra 15-20% of your premium every year?!

Long story short, you don’t! The Budget Direct Insurance team will help you at no extra charge and you don’t need to pay any extra fees. This is just the beginning of the many ways insurance can be easier and cheaper when you understand the basics.

Three types of insurance you should definitely know about.

There are three types of insurance you can find here in Singapore: Third Party Insurance, Third Party, Fire, and Theft (TPFT) and Comprehensive coverage. Wondering which is right for you? Don’t worry, our car-splainer is coming right after this entertaining little clip. First, watch and ask yourself, am I as clueless as these poor souls?

Ok, ready for the big reveal? Third party insurance covers only the other party in an accident for up to S$5,000,000. Yep that’s right, it doesn’t cover yours. So, if you’ve rear-ended another vehicle (like when parallel parking to chope a spot on Syed Alwi Road in rush hour – so tough, we know), third party insurance will pay for the other vehicle’s damage… but not yours.

Spoiler alert: Comprehensive car insurance coverage covers most accident scenarios and is the top choice of most Singaporeans. The cover also includes what we like to call the super very big deal issues like death, accidents, fire, theft, medical costs, etc. We’d say these things are worth protecting, wouldn’t you?

So, what does TPFT mean exactly?

Take a look at these guys. They have no idea!

TPFT insurance covers you as well as the other party in an accident. Also, as you might have guessed you’ll be covered against fire and theft in the unlikely event that someone (a nemesis from spin class perhaps?) torches your car or drives off with it.

“Premiums”, and what the heck they mean.

Let us break it down. Your payment is the insurance premium. The premium can be paid monthly, quarterly, semiannually, or annually – depending on the payment arrangements you have made with your chosen insurance company, which, since we’re assuming you like things simple, is most likely Budget Direct Insurance.

Different factors like your age, driving experience, the type of car, vehicle age, and more, determine the amount of your insurance premium. If you’re a 19 year old driving a new, bright red Mercedes C Class, it’s safe to say your premiums will be through that beautiful hard top convertible roof. (Also, would your parents like to adopt us?)

Another example is off peak cars (the ones you see with red plates). They may get better insurance rates since they’re driven on the roads during non-peak periods, and the older the car, the lower the premium.

No Claim Discount and how to get one. 

A No Claim Discount (NCD) is a discount provided by the insurer every year. The longer you can go without a claim, the lower your premiums will get. Think of it as a little reward for being a safe and cautious driver.

An additional discount is also added on top of your NCD to reward drivers who have their Certificate of Merit from Traffic Police. So how to get some of that extra perks? It’s quite straightforward really – stay out of trouble on the roads.

Upsize my covers, please.

Extra protection? Comin’ right up. Budget Direct Insurance has an easy to understand range of optional covers at super competitive prices. You can get covered for things besides road accidents as well, depending on what you need. You can add other drivers under your policy for example, so if they wreck the car instead of you, the amount you have to fork out won’t be crazy high. You can get covered for the little dings and fender benders as well as the “You drove into the lake at Botanic Gardens? How?!” moments.

Here’s where the savings come in. There are no extra fees, charges or commissions for an agent or broker to manage your insurance – Budget Direct Insurance has a team that will help you at no charge.

Who you gonna call? (No, not ghostbusters!)

One of the most important, and perhaps most basic, questions is who should you call first when something major happens…

Moral of the story: car insurance is so important because that’s who you need to have on speed dial when an accident occurs. Your first call should be: 1. The emergency services if medical attention is required, 2. Your insurer, 3. Your mum or dad, who will not be too happy that you dinged up the car.

So there you have it, the Coconuts Singapore and Budget Direct Insurance solution to a complicated insurance industry.

And if all this still feels a bit mind-boggling, the nice people of Budget Direct Insurance are here to chat. They also promise to keep the topic of car insurance simple and easy – as it is supposed to be in the first place!

In fact, give them a call and see if they can beat your insurance renewal. If they are not cheaper than your current insurance renewal, they’ll give you a $100 shopping voucher – for free!

Get a quick quote in less than 30 seconds to see how much you can save at BudgetDirect.com.sg or talk to a member of the Budget Direct Insurance team, right here in Singapore, by calling 6221 2111, Monday to Friday, from 8am to 8pm.



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