People search day and night on the internet and asking friends which company supplies the best auto insurance. The answer is difficult to answer but choosing the correct car insurance company is important as your car in Singapore is expensive and you want to make sure you have a reliable auto insurance plan that suits you.
AUTO QUOTE (PRICE)
Normally the first thing that car owners consider is the price of the car insurance. But what affects the price of an auto quote varies when by your age and years of driving experience and even the type of car.
How premium is calculated
Premium is calculated base on the follow factors
1) Age Group This is car owner’s age. Most company has similar age group factor
18 to 21 – super expensive
21 to 25 – quite expensive
26 to 30 – a bit expensive
31 to 65 – safe zone
2) Driving Experience This refers to how long did you get your driving license and has nothing to actual driving experience. This is measured in number of years
0 to 1 – super super expensive
1 to 2 – super expensive
2 to 4 – quite expensive
more than 4 – safe zone (most insurance company charge lowest rate for 4 years of driving experience, though some company 3rd year will give the lowest rate – eg. OAC under Great Eastern)
3) Job occupation (Indoor/Outdoor) This refers to the nature of work, like desk bound or sales
Indoor – cheaper
Outdoor – more expensive
So far, I have only heard of a company that charge the same rate for indoor and outdoor occupation as of Oct 2008. It’s Mitsui Sumitomo.
4) NCB Discount No Claim Bonus discount, some may call it NCD (No claims Discount) You get 10% NCB every year if you do not have any accident. The maximum NCB that you can get 50%.
For example, your car insurance cost $2000 (before NCB) and you have 40% NCB, your premium would be $1284 {[2000 – (2000 * 40)] * 1.07} with GST. Hence the higher the NCB the lower your premium
5) NCB Protector This is application to people with 50% NCB, in the event of 1st accident in that policy year, your NCB will remain as 50%. After which, the 2nd accident will cause your NCB to be reduce to 20% (50% – 30%) . If you super unlucky and have the 3rd accident in a year your NCB will be reduced to 0% (20% – 30%, you cant get -10% so it will be 0%)
It is important to note that NCB protector is only effective if you renew your car insurance with the same insurance company. If my car insurance is with company A and my NCB is 50%, after the 1st accident (and it’s my fault) , I still get 50% NCD as I got the NCB protector upon the renewal. However, instead of renewing my insurance with company A, I go with company B. I will only be entitled to 20% NCB.