BUSINESS & TECHNOLOGY

How to get car, travel insurance in Singapore

car

Singapore is a global hub for technology and transport, among others. Car insurance companies in the country offer three main types of motor insurance policies and two types of motor insurance scheme.

Types of Motor Insurance Policies

1. Comprehensive Car Insurance

Comprehensive car insurance covers repair or replacement of the vehicle if it is damaged or lost because of theft, accident, vandalism or weather-related damage. This type of car insurance is recommended to those who do not have enough savings to replace the car or are economically dependent on it.

2. Third-Party, Fire and Theft Cover Car Insurance

Third-party, fire and theft cover car insurance covers not only damage caused to the vehicle by a vehicle or other party’s property but also vehicles stolen or damaged by fire. To purchase this policy, one must not have any financial loan for your car.

Make sure there is enough savings to replace the car. For newer cars, it is better to get comprehensive car insurance.

3. Third-Party Cover Car Insurance

Third-party cover car insurance covers claims of liability from third parties for injury and damage to their vehicle or property caused by the vehicle. To purchase this policy, one must not have any financial loan for the car.

Make sure there is enough savings to replace the car. For newer cars, it is better to get comprehensive car insurance.

Types of Motor Insurance Scheme

1. Authorized Workshop

An authorized workshop is one that has an arrangement with the insurance company. This means that the scheme has a lower premium because the insurer has control of the repair cost.

2. Any Workshop

A reason for people to choose the any workshop scheme is that they have a certain car make that can only be fixed in designated workshops. For those who are buying a new car that is under warranty, be faithful to the dealer’s workshop or else the warranty will be void so go for car insurance that allows going to any workshop or the dealer’s workshop.

Other Considerations

Insurance Company 

Excess, also called deductible, is the amount required to be paid when making a claim on a policy. If the insured has an excess of $500 and the total repair costs $3,000, then the insured has to pay $500 while the insurer pays the remaining $2,500.

The insurance company normally imposes some excess as this would serve as a form of co-insurance. With an excess, the insured would tend to be more careful because if claims occur, the insured also has to be out of pocket and contribute towards the claim.

In general, the higher the excess, the more careful would be the insured and hence the lower the risk of having a claim to reduce frivolously unnecessary and avoidable claims. Choose to pay a higher premium to have lower excess and for private hire vehicle drivers, ensure the high excess from less than $4.00 a day.

Travel Insurance

Travel insurance helps protect car owners from risks while traveling overseas. All policies offer at least basic levels of cover for medical costs, cancellation and lost, damaged or stolen baggage.

However, policies’ coverage varies greatly and it is important to check that you have the right insurance for the kind of traveling you plan to do. Consider emergency assistance, personal liability, scheduled airline failure, legal assistance, travel disruption and holiday curtailment.

Generally, the single-trip policy covers car owners for as long as their trip lasts up to a maximum of 180 days. An annual travel policy covers them an unlimited number of trips for an entire year from the policy start date so such a policy is worthwhile for frequent travelers.

A family travel insurance plan will cover children under 18 or if still schooling. This is a much cheaper option to consider when traveling with family.

For those who plan to travel several times within a year, annual travel policy covers all trips and can be far more cost-effective. The cheapest policy might not have the best coverage so car owners should choose a policy which best suits their needs.

To get the best car insurance quotes for your budget, visit https://bit.ly/2Kcf8rc

For travel insurance, visit https://bit.ly/2Zk9B8t

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