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Ways to save on your car or motorcycle insurance premium

Having a car or motorcycle insurance is a smart and prudent necessity. However it adds to the extra cost of driving., especially in Singapore where the costs of driving are so high. We at Moneysigma.com have compiled a list of ways one could save on car or motorcycle insurance premium in Singapore.

NCD or No claim discount:

No claim discount or NCD is the discount offered by your insurer on your renewal if you do not claim on your policies and is an upfront way to save on your car or motorcycle insurance premium. NCD increases every year of non consecutive no claims up to max of 50% on private cars and 20% on commercial vehicles or motorcycles. Being a good driver is rewarding. Your NCD will not be deducted every time you claim in cases you are ruled not at fault. Find our guide to what is NCD and how do you check yours here. Make sure you declare the right NCD in your applications to get the best discounts. Your insurer has access to NCD database and can lookup the latest status for you.

Certificate of Merit

Certificate of Merit or Offence free discount is a certificate issued by Traffic Police in Singapore. You are eligible if you maintain a continuous demerit point free driving record for the past three years. Certificate of Merit gives you extra discount over No claim discount and can help you reduce your premium. Check your certificate of merit discount here.

Change your excess or deductible

Excess or deductible is an extra amount you will pay to the insurer in case you end up claiming. This amount is usually deducted by the insurers when they have to pay you for your claims. The higher the excess you opt to pay later, lower is the insurance premium charged now. Play around with excesses to check if you are comfortable to reduce your insurance premium now.

Pay less for Low mileage or off peak car usage

If you own an off peak car your usage is bound to be less. Insurers have lower premiums if your car usage is Low. If you own an off peak license plate then declare it to reduce your premium. Some insurers also reduce their premium based on mileage. The more accurate mileage you can declare the lesser the premium. Directasia for e.g., has a Low mileage policy which is offered when you declare you drive less than 8,000 Kms an year. However please note exceeding the usage may come with an hefty fine or decline of claims.

Opt for only necessary Optional benefits

Some insurers pack their policies with lots of extra benefits. You may want to carefully read through and opt only for benefits you really need. Opting out from some options will help you save on your car or insurance premium. On the other hand opting in for some options may help you save on your premium.

E.g., if you opt for paperless policy and do not want the physical documents mailed to you( A digital copy can be downloaded) then insurers offer you a discount.

Opting to install a car camera and providing footage during claims will also help you save on your premiums. Directasia provides you extra 4% discount for this optional benefit.

Stay with the same insurer if they have loyalty discounts or you have other policies with them

If you stay with the same insurer for long, they might have some loyalty discounts or some promotions for renewal customers. Look around for these to get a better offered final price. Also if you have other policies like travel, health or life with a certain insurer- they might have extra discounts to cross cover you for car or motorcycle policies. Selling multiple products to the same customer helps insurers save on operation costs as well as they can underwrite your premium in a more fairer way with the extra details they know about you.

Look around and compare

Various insurers underwrite your premium based on variety of factors and will have difference in pricing. Moneysigma recommends to at least quote from 2 to 3 insurers and compare them for the optimal match of price and your required coverage.

Find Other discounts or promotions

Some insurers offer you interest free monthly payment and this is good way to spread your costs over the year. Opt for monthly premium for proper budgeted planning. Look for various promotions with all insurers.

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