It’s no secret that automobiles are expensive in Singapore. From purchasing, operational costs to vehicle insurance premiums, a car can be financially catastrophic. It is no surprise that we want to get great deals and bargains in terms of the additional costs like car insurance. While not all insurance companies offer customization options for your insurance plan, some insurance providers do so. So, can you get low-priced car insurance by customizing your insurance plan? Here are some tips on customizing cheaper car insurance in Singapore.
· Choosing Workshops
Some insurance companies can provide you with cheaper premium insurance rates if they limit the number of workshops you can go to for car repair. However, you should keep in mind that if you visit a workshop that the insurer has not approved, you would be able to claim the costs of the fixing.
· Abroad Coverage
If you always travel for short getaways outside the country, like a drive to Malaysia, it is essential to have overseas coverage to protect yourself and the car. But if you don’t often drive out of Singapore, this is a clause you should not include on your car insurance plan. This will save you some dollars off your yearly premiums.
· Named And Age of Drivers
A ‘Named Driver’ on your car insurance plan refers to the one who signed the insurance contract. Other people driving the car will not be covered. Car insurance plans allow you to add other drivers’ names, but doing this will make your insurance premiums more costly. More so, the younger the drivers you add, the more expensive your insurance will be. Therefore, to get cheaper car insurance, you should avoid adding “named drivers’ unless it is extremely necessary. Also, you should try and add an older driver if there is no need to cover a younger driver, which will help reduce your premiums.
· Personal Accident Insurance
Car insurance is not only meant to protect your car in case of an accident. Instead, it also serves to protect you when involved in a car accident. This is included in the Personal Accident (PA) coverage. Normally, PA coverage includes compensation to your registered dependents in the unfortunate event of death or disability. However, if a different personal insurance policy already covers you, some insurers such as DirectAsia, enables you to customize your plan, so you only pay for what you want. You can remove PA coverage from your car insurance policy for lower premiums. Visit their site for more info https://www.directasia.com/car-insurance/.
You probably have heard this term, but what does it mean? Excess is a term used to describe the money you have to pay first before your insurer proceeds with the payment. In simpler terms, if your car repairs add up to $3000 and your excess is $1500, you will need first to pay the $1500. More so, if the fixing costs are below your excess amount, the insurance company will not pay, and you will have to pay it yourself.
Having a low excess will mean a higher insurance premium. On the other hand, having high excess means lower insurance premiums. You can choose a high excess if you believe in your driving skill to lower your premiums. However, accidents are unpredictable and making this alteration can cost you big time.
· Loss Of Use Benefits
If you are involved in an auto accident, some insurance companies provide benefits from losing the ability to drive your car while it undergoes repair. This can be offered in terms of being given a transport allowance or a replacement vehicle during the repair period. This will provide you with enhanced convenience but also comes at a higher annual premium. Therefore, if you don’t completely depend on your car for livelihood, you should consider opting out of loss of use benefits. Removing this option from your insurance policy will help save some dollars. In fact, Singapore is a small country, and having no car for some time won’t be a big deal.
These are some ways that you can customize your car insurance plan to achieve cheaper annual premiums. However, keep in mind that the cheapest deal is not always the best deal. Instead, it should be about the value of the coverage you get for a particular amount of cash. Therefore, analyze what is essential to you and customize your insurance plan appropriately.