5 Insider Tips to Save on Car Insurance
When it comes to car insurance, making the right choices can lead to significant savings. To help you navigate this world, we've put together some straightforward tips for you, regardless of your experience or knowledge of insurance.
1. Look for better deals.
Have you ever felt pressured by your car dealer to buy insurance from them? Our advice is to always seek alternative insurance quotations online, or engage an insurance broker to do the comparison for you. A broker’s role is to understand your needs and recommend the most suitable plans for you. As a buyer, your goal is to explore all the available insurance options in the market.
Some car dealers may charge a penalty fee (typically $500) if you don't purchase insurance through them. However, you might be surprised to learn that the cost savings from purchasing your insurance elsewhere could exceed this $500.
When your car insurance is due for a renewal, it’s also beneficial to shop around for quotes and compare them. If you find a more affordable deal elsewhere, consider asking your current insurer for a price match.
2. Opt for an authorised workshop plan.
Authorised workshop plans are generally 20% cheaper than any-workshop plans. As your insurer has more control over the repair costs for their approved list of workshops (authorised workshops), the cost savings are passed on to you, resulting in cheaper insurance premiums. If your car doesn't require specialised repairs, opting for an authorised workshop plan can save you significant amounts of money spent on policy premiums.
In the past, car dealers mandated customers to exclusively use their authorised workshops for service and repairs to uphold the car's warranty. Dealers had the authority to void warranties or reject claims if work was done at independent workshops. However, in 2017, the Competition Commission of Singapore (CCS) has removed these warranty restrictions. Under an any-workshop plan, you now have the freedom to choose where to repair your car, including independent workshops.
The flexibility and choice for any-workshop plans means you can shop around for repair workshop and services, which can potentially lead to lower repair costs. The lower insurance claims for repairs may ultimately result in a smaller increase in your renewal premium for the following year.
3. Check for “safe driver discount”.
To reward safe drivers, the Traffic Police in Singapore issues a Certificate Of Merit (COM) to individuals with a 3 year streak with no demerit points. Having a COM makes you eligible for safe driver discounts of up to 10% from most insurance companies.
Make sure to drive safely and check your eligibility on the Traffic Police E-services website. Insurance providers like safe drivers and are willing to reward them with an additional discount.
4. Enquire about bulk discount.
Insurance companies are often willing to offer discounts if you insure multiple vehicles with them. If you have more than one vehicle in your household, consider checking with your insurer or broker to see if bulk discounts are available.
5. Remove unnecessary coverage.
A fully comprehensive insurance policy may sound appealing, but you might not need all the bells and whistles that come with it. Some of these extras come at an extra cost that you could save on. Review your policy coverage carefully and remove any add-ons that you don't require. NCD Protector? Courtesy Car? Excess Waiver? These terms may be confusing for the uninitiated.
If you’re unsure about the types of coverage you need, get a broker to help you assess your needs. You might be surprised to discover that you are paying extra for unnecessary coverage!
Get insured with the right help.
Having an expert on your side to help you pick the right insurance plan and find the best price can be a big help. If you need help finding the right insurance coverage, consider working with an experienced broker like eazy. Our team can advise you on various insurance plans, including motor, health, corporate, lifestyle, and marine coverage. Speak to us today to get your insurance needs covered.