Factors affecting Premiums for Auto Insurance / Car Insurance in Singapore
Profile of Insured / Registered Owner of the car
1. Age
This is the one time where it pays to be older. Generally, if an insured person is older, the premium will generally be lower. But this is only true up to 69yrs old. Once a person crosses into 70yrs old, most insurer will not want to take up the risk. So for drivers who is <26yrs old or > 70yrs old, premium are generally higher due to higher risk.
2. Driving Experience
Basically, since there are no other benchmarks on driving experience, the insurer will base it on the Date when the Singapore driving license are obtained. Due to the increasing population of Expatriates, Employment Pass holders & Permanant Residents population in Singapore, some insurer DO take into consideration the driving license which the person has obtained from their home country. This generally helps lower the motor insurnace premium that needs to be paid by them.
3. Make & Model of the car
The rule of the thumb would be that the premium will be lower for those Make & Model which has better claim experience. (Think Toyota Vios / Nissan Latio vs Mitsubishi EVO / Subaru WRX). Another possibility could be also due to a larger brand share of a particular Make & Model which reduces the risk undertake by the insurer.
Below are some general Motor Insurance Premium price band by Brand
(Premium indication below excludes Turbocharged / Supercharged / High Performance vehicle / Coupes / Cabriolets / High valued vehicle)
NOTE : Information below are correct as on Jan 2010
Low Premium - Toyota, Nissan, Hyundai, Chevrolet & KIA
Medium Premium - Honda, Lexus, BMWs, Mercedes, Audi, Volkwagon & Renault
High Premium - Subaru & Mitsubishi
Disclaimer : Above are estimates correct as on Jan 2010 but information above are solely for reference purposes and :
We shall NOT be liable for any gains / losses that may arises from the above information.
We shall NOT be responsible for any reference link that may refer you to us.
4. Claims history
Put it simply, the more you claim, the more expensive will be your neneweal auto insurance premium, This is the part which may cause HUGE increase in Motor Insurance Premium. Due to escalating claims, car insurance rates have increased about almost 50% over the last 3 years. Claims record in Singapore stays with a person for 3 years. Therefore, to keep your premium low, careful driving without claims is one of the best way.
Another way is to pay a small fee to preserve your NCD (explained below). Thus, even when you make a claim, your insurance discount will still be effective.
Due to the huge claims suffered by insurer in recent years, once a person has :
* 1 claim of > $30K in the last 3 years
* 2 claims of any amount in the last 3 years
The person will probably have to SELL their car as there is NO insurer that will be willing to insure that person.
What is NCD / NCB?
NCD - No Claim Discount
NCB - No Claim Bonus
No Claim Discounts [NCDs] are discounts provided by insurance companies to offset against motor insurance premium. They are typically employed to reward policy holders for good driving records. This is being adopted by all motors insurance companies in Singapore.
When there is a change in insurer for the motor vehicle insurance, NCDs can also be transferred. For policy holders to continue to enjoy the NCD with the new insurer, insurance companies have to exchange information on policy holders’ NCD records.
Last, but not the least, you can check with Traffic Police if you have a valid Certificate of Merit (COM aka "White Card"). If so, you stand to enjoy a further 5% on your annual auto insurance quote upon renewal.
Profile of Insured / Registered Owner of the car
1. Age
This is the one time where it pays to be older. Generally, if an insured person is older, the premium will generally be lower. But this is only true up to 69yrs old. Once a person crosses into 70yrs old, most insurer will not want to take up the risk. So for drivers who is <26yrs old or > 70yrs old, premium are generally higher due to higher risk.
2. Driving Experience
Basically, since there are no other benchmarks on driving experience, the insurer will base it on the Date when the Singapore driving license are obtained. Due to the increasing population of Expatriates, Employment Pass holders & Permanant Residents population in Singapore, some insurer DO take into consideration the driving license which the person has obtained from their home country. This generally helps lower the motor insurnace premium that needs to be paid by them.
3. Make & Model of the car
The rule of the thumb would be that the premium will be lower for those Make & Model which has better claim experience. (Think Toyota Vios / Nissan Latio vs Mitsubishi EVO / Subaru WRX). Another possibility could be also due to a larger brand share of a particular Make & Model which reduces the risk undertake by the insurer.
Below are some general Motor Insurance Premium price band by Brand
(Premium indication below excludes Turbocharged / Supercharged / High Performance vehicle / Coupes / Cabriolets / High valued vehicle)
NOTE : Information below are correct as on Jan 2010
Low Premium - Toyota, Nissan, Hyundai, Chevrolet & KIA
Medium Premium - Honda, Lexus, BMWs, Mercedes, Audi, Volkwagon & Renault
High Premium - Subaru & Mitsubishi
Disclaimer : Above are estimates correct as on Jan 2010 but information above are solely for reference purposes and :
We shall NOT be liable for any gains / losses that may arises from the above information.
We shall NOT be responsible for any reference link that may refer you to us.
4. Claims history
Put it simply, the more you claim, the more expensive will be your neneweal auto insurance premium, This is the part which may cause HUGE increase in Motor Insurance Premium. Due to escalating claims, car insurance rates have increased about almost 50% over the last 3 years. Claims record in Singapore stays with a person for 3 years. Therefore, to keep your premium low, careful driving without claims is one of the best way.
Another way is to pay a small fee to preserve your NCD (explained below). Thus, even when you make a claim, your insurance discount will still be effective.
Due to the huge claims suffered by insurer in recent years, once a person has :
* 1 claim of > $30K in the last 3 years
* 2 claims of any amount in the last 3 years
The person will probably have to SELL their car as there is NO insurer that will be willing to insure that person.
What is NCD / NCB?
NCD - No Claim Discount
NCB - No Claim Bonus
No Claim Discounts [NCDs] are discounts provided by insurance companies to offset against motor insurance premium. They are typically employed to reward policy holders for good driving records. This is being adopted by all motors insurance companies in Singapore.
When there is a change in insurer for the motor vehicle insurance, NCDs can also be transferred. For policy holders to continue to enjoy the NCD with the new insurer, insurance companies have to exchange information on policy holders’ NCD records.
Last, but not the least, you can check with Traffic Police if you have a valid Certificate of Merit (COM aka "White Card"). If so, you stand to enjoy a further 5% on your annual auto insurance quote upon renewal.
Source : singaporeinsurance.org
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