People in Singapore who own a car must have car insurance as per the law. People go for car insurance to protect the car from various types of damages that have occurred due to accidents, bad weather, or any other factor. People would also like to save themselves along with the family members traveling in the car. If anybody is injured, hospital bills can be claimed if it is included in the insurance. If people did not purchase insurance, they can get into various types of problems. There are three types of car insurance, which people in Singapore can purchase to protect their vehicles as well as passengers.
Types of Car Insurance
Third-Party Only Insurance
This is car insurance that is available at an affordable cost. As the cost is low, the coverage is also very less. The coverage will include the damages caused by the driver to the properties of other people like their car, fence, and many other things. If the car accidents cause injury or death to the other people, this insurance will provide that coverage also. This policy will not cover the owner nor the car that has caused the damage. People who have old cars go for this type of loan. They do not mind if the car is damaged and needs repairs.
Third-Party Fire Theft
This is a policy, which has many similarities with third party only insurance. Besides this, if the car is stolen, damaged, or catches fire, the insurance policy will cover that damages also.
Comprehensive Car Insurance
This is very expensive car insurance since it covers many things. This insurance covers the damages done to the car due to the accident. Damages done due to vandalism and fire are also covered under this insurance. If the car is stolen, people can claim as per the rules of the policy. Many other things can be covered but that depends on the policy and the company that is providing it. Some of these things include the provision of a courtesy car if the original car is in the worship. The insurance may also include damages caused by any natural cause like floods or earthquakes. Personal items carried in the car during the drive may also be insured. If a person purchases a car loan, the bank may also protect itself under the comprehensive insurance.
Factors Affecting Insurance Cost
Many factors affect the cost of car insurance. It has the dependency upon drivers, their age, driving experience, gender, marital status and many more. This is required because the insurance company would like to know about the frequency of accidents that a driver may cause and the payout that the company must make.
Many other factors affect the insurance cost, and these are discussed here.
Many insurance companies believe that women drive safely when compared to men. In such a case, the cost of the premium is less in the case of females than males.
It has been estimated that young drivers drive the car more aggressively than the old ones. They are more prone to accidents hence insurance companies think that it is risky to provide the insurance for the car whose driver is young. Insurance companies provide insurance with less premiums to the drivers having the age in the range of 30 and 65 years. The premium for the drivers under 30 years or over 65 years is more as they are more prone to accidents.
Insurance companies would like to know the occupation of the applicant. This is necessary because the companies want to know about the frequency of the usage of the car. The chances of accidents will be high if the usage of the car is high. In such a case, charges of the premium will also be high.
- Usage of Car
If car usage is very low, the premium of its insurance will also below. This is so because less usage will reduce the chances of accidents. Many insurance companies provide discounts on premiums for cars whose mileage is low.
- Driving Experience
Companies check the driving experience of the drivers. People having a good experience will have to pay a low insurance premium, as they are less prone to accidents. Also, people with no or minimum experience will pay high insurance premium.
- Marital Status
Insurance companies think that responsibilities are more on the shoulders of married men than the unmarried ones. That is the reason they drive safely and carefully. The companies charge less premiums from married drivers.
These are some of the things that people need to keep in mind while purchasing car insurance. Age, gender, and experience of the driver are the important factors that companies check to give insurance with low premiums. Discover more about car insurance with HL Assurance.