car insurance Archives - Page 9 of 9 - Insurance Agency Singapore | Commercial Insurance and Personal Insurance

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Everyone knows the old saying about excess – too much of anything is a BAD thing. But not everyone knows that trying to save too much money on your car insurance policy’s “excess” is a risky move that can cost you thousands of dollars if you’re not careful.

What Is This “Excess” You Speak Of?

In case your insurance agent skipped the “excess” portion of your car insurance policy or you chose a higher excess when purchasing your policy online because you thought “more” was better – excess is the amount of money YOU must pay your insurer before it will cover the full amount of your claim.

Why Doesn’t Everyone Have a Low Excess Then?

The problem with having a low excess is that it’s expensive. That’s because most of the financial risk is on your insurer if you ever make a claim. But you shouldn’t worry too much about your insurer shouldering most of the cost in case you get into an accident – they’re getting plenty of money from you in the form of higher monthly premiums.

Cheaper Isn’t Always Better – It Can Cost You In the Long Run

What’s wrong with raising your excess to the highest possible limit to save money? Nothing – if you’re someone who drives an off-peak car, lives fairly close to work, drives irregularly, and has the unique ability to see into the future.

Drivers under 26: Sorry kid, statistically, you’re more likely to be involved in an accident than someone just a few years older than you.
Drivers over 60: Sorry uncle, with all due respect, you’re more likely to have poor eyesight, health problems that affect your limb movement, and slower reaction time – factors that contribute to many accidents involving older drivers.
Rush Hour Commuters: Bumper-to-bumper /stop-and-go city traffic poses a higher risk for accidents, where even a slow speed accident can cause 1K-2K worth of damage!
Drivers Who Commute 50km+ daily: Your likelihood of an accident increases with both driving frequency and distance.
Shift Workers: Fatigue is a big contributing factor to accidents, as people who come off 12-hour shifts tend to be more fatigued than those of us working 8/9 hours daily.

by Jeff Cuellar

See Full Story on blog.moneysmart.sg

Finding the right car insurance plan can be like playing Pin the Tail on the Donkey…but after six margaritas and a double blindfold. Before we even get started, let’s point out the obvious.

1. What am I Paying for?

How much you pay for the insurance plan depends on things like your driving record, your car model, your insurance history, etc.

2. Restrictions on the Driver

You may be a good driver, but your insurer doesn’t know if your spouse/children/drinking buddy is.

3. What extra cover can you buy?

You may be able to buy protection from things besides road accidents.

4. Make sure your bank approves.

If you’ve bought the car on a bank loan, you may be facing other requirements. Some banks won’t allow you to buy TPO (Third Party Only) car insurance.

5. The Excess

When you make a claim, the amount you have to pay is referred to as the excess. The rest of the cost is borne by your insurer.

6. Damage Assessment

Sadly, my assessment that my last collision resulted in “total demolition” wasn’t acceptable to my insurer. I had to take my car to an IDAC (Independent Damage Assessment Centre), where after the inspector stopped laughing, he defined the damage as “a small dent in the front bumper”.

7. Repair Restrictions

Insurers may insist you go only to specified workshops. Likewise, they may be finicky about who repairs the car, and what parts the mechanics can use.

8. No Claim Discount

The NCD (No Claim Discount) is a discount to your premium. You get this in increments of 10% when you don’t file any claims for the year, and it accumulates for each year without a claim.

9. Proper Procedures

I have a booklet on my insurer’s claim procedures. It’s about as accessible as a third year course in Greek poetry, so I just call the experts and ask instead.

10. Refunds and Penalties

Let’s say you’ve made a dire mistake, and brought your car to JB for some unsubtle modifications. As a result, your car now resembles a cruise missile more than a sedan.

11. Finding the Right Insurance

The right car insurance isn’t just about the lowest premiums. If you aren’t properly covered for an accident, cheap insurance is worse than no insurance.

by Ryan Ong