Trying to understand the way your car insurance premium is priced in Singapore can be quite

confusing and fustrating. Many drivers have questioned about their car insurance premiums and

yet have little understanding on how it all works and to get it at their best advantage.

I hope this article gives you an idea on how insurance companies in Singapore price their car

insurance premiums.

Car insurance premium in Singapore is based on a point system that follows 2 categories of

factors. Firstly, the Characteristics of the Driver insured, and secondly, the Characteristics of

the Vehicle.

Now here are the contributing factors that affect your car insurance premium:

Category #1: Characteristics of Driver (Insured)

a) Age of Driver:

The older you are, the less your premium costs.

Major factor that affects the price of your car insurance Premium.

o 18 to 21 yrs old — Most Expensive

o 22 to 25 yrs old — Expensive

o 26 to 30 yrs old — Moderate

o 31 to 65 yrs old — Least Expensive

b) Gender & Marital Status:

Cheaper for Females than Males

Cheaper for a Married person as compared to a single

c) Driving Experience:

The more Experienced you are, the less your premium costs.

(Calculated from the time you got your driving license)

o 0 to 1 yrs experience — Most Expensive

o 1 to 2 yrs experience — Expensive

o 2 to 4 yrs experience — Moderate

o > 4 yrs experience — Least Expensive

d) Job Nature (Indoor/Outdoor):

Cost more if job nature is Outdoor, and less if Indoor

e) No Claims Discount (NCD):

If you have not made any claims with your insurance company for a year, you will

receive a 10% NCD to reduce your car insurance Premium the following year.

You will receive an additional 10% NCD every year and your NCD can be accumulated

up to a maximum of 50%.

If a claim is made during a policy year while you are still enjoying NCD, the NCD will

be reduced the next time you renew your motor insurance.

f) Certificate of Merit Discount:

If you have NO traffic offense or accumulated demerit point(s) in the past 3 years, a 5%

discount is awarded to you on top of the deduction of your NCD.

Category #2: Characteristics of Vehicle

g) Body Type:

Types of cars – Sedan, MPV, SUV, Sports Car, Station Wagon, etc.

Costs more to insure unusual types of vehicle.

h) Engine Capacity (cc):

The higher the engine capacity, the more your premium costs.

i) Engine type:

Types of Engines - Normal or Turbo engine

Costs more to insure a car with turbo engine

j) Year of Manufacture:

Year in which your car was made/registered

The older the car, the less you pay.

Some insurers refuse to offer comprehensive coverage for cars beyond 7 years old

k) Vehicle Scheme (Normal/Off-peak)

Some insurers offer a 5% discount for Off-peak cars

With the large number of contributing factors to price a car insurance premium, inconsistencies

are never far away. Nonetheless this presents us a chance to get the cheapest prices for your car

insurance.

An easy yet effective way to save on your Singapore car insurance is to car insurance singapore"

http://www.carinsurancesingapore.com/articles/car-insurance-excess-how-it-works/">compare

quotes from at least 8 to 10 different insurers. This will be sufficient to surface the insurance

company that is in favour of your vehicle or driver profile.

BUT this is not going to be easy. It is time consuming to call up 8-10 insurers, repeating your

information several times, and finally chewing on the unfamiliar insurance jargons (and trying

very hard to fathom the terms and conditions) what each insurer has to offer!

If you are serious about getting a competitive car insurance quotes, let us do the leg work for

you.

We’ll do a FREE comparison for you with our pool of motor insurers in Singapore. In this

way you save time for more important things and save (money) on your car insurance costs too.