Singapore is expensive.
It is one of the most expensive countries in the world to own a car. Petrol and other car-related expenses keep rising year after year. That includes insurance costs coverage. MoneySmart understands this and has provided an efficient process to help you save on your insurance costs.
Plus, Moneysmart is providing the tips you need to know about to help you get the cheapest car insurance rates possible. All you have to do is continue reading our article to find key ways to save money on your insurance costs.
9 Tips on Lowering Car Insurance Costs
When you think you are paying too much money for your annual car insurance costs coverage, take time to read the following tips. These tips should help you get the cheapest car insurance costs and help you save a lot.
#1. Do comparison shopping– the best way to lower your insurance premiums is to compare what all the insurance companies in Singapore have to offer. Give your driving details to each one and ask for a quote.
Once you get that information, compare costs and see which one will save you the most.
#2. Shop online- The internet has cut the cost of doing business substantially. The more businesses can save costs by working online the more they can pass their savings on to you. Just make sure to be accurate when providing your driving information.
When you shop online, you can do it from the comfort of your home or office. There is no need to waste time traveling from the insurance office to the insurance office. Save your time and lower your driving to get lower insurance costs.
#3. Compare insurance costs coverage levels– Sometimes the highest insurance level coverage you can get works out to be the cheapest. In Singapore, the lowest level is third-party coverage, the next level is third-party fire and theft and finally, the highest level is comprehensive.
Take your time and read all the details of each level to make sure you are paying the lowest amount possible.
#4. Get no-claim discounts– this is a special feature that offers to lower your insurance premiums if you are a safe driver. For every year you do not file an insurance claim, the insurance company can offer you a no-claim discount and this discount can build up over 5 to 8 years depending on the insurance company you sign on with.
Being a safe driver is one great way of receiving the cheapest car insurance rates possible.
#5. Raise your voluntary excess– when you have an accident, the excess is the amount of money you will have to pay towards your claim. Your age, car, and driving experience will dictate your compulsory excess but you are in control of the voluntary amount.
If you raise your voluntary excess then your premium rates should go down but do not raise it too high or you may lose more money than you anticipated.
#6. Do not make payments– this system of spreading your payments over the upcoming year may help your budget but it adds expenses. One of those expenses will be the interest that builds upon the unpaid balance.
You can save that money by paying your car insurance cost in one payment. This may be a large one-time amount but in the long run, you save.
#7. Don’t use the auto-renew feature– this may be quick and easy as well as convenient but it may end up costing you money. If you shop around each year you can do some negotiating with your current car insurance agent.
The new customer discount may be a bigger saving for you than continuing with your current insurance policy. Or you can use that discount information and negotiate with your current agency and see if they will offer you a better deal.
#8. Drive an insurance-friendly car– It may not be the most luxurious car in the neighborhood but it can save you a lot of money when you pay lower insurance premiums than your neighbor.
Your insurance costs are all done by the group rating. This rating helps insurance companies decide what to charge for your insurance coverage. The more insurance-friendly your car is, the lower your rating and you get a lower insurance payment.
The insurance rating is based on the following criteria:
- original sales price
- Security level
- The cost of parts
- The cost of repair work
#9. Wait for your record to clear– traffic tickets and accidents will be counted against you every year until they drop off your record. If you can be patient, then once your record has improved, you can pay lower insurance fees.
Tickets take 3 to 5 years to drop off and are no longer counted against you.
Some final words
Practicing these tips should help you save a little money over the coming years. Once you have put some into play, contact MoneySmart to see how they can help you get the cheapest insurance rates possible.
Their insurance experts have the experience and expertise to help you navigate the high cost of insurance coverage.