For long, vehicle owners seem to believe that ALL motor insurance policies are the same and its always about the cheapest. THE BIG BIG IRONY? The typical insurance agent, your car dealer, the people behind many online portals seem happy to play along with the myth and respond with the easy way out – offering you the CHEAPEST policy because you asked for it.
In many instances, most of them will tell you the premium for the cheapest quote, maybe the excess levels and unable to explain to you more.
The truth is that that they just aren’t the same. For instance, obvious benefits such as
- NCD Protector,
- Windscreen excess (there are a few which have no windscreen excess),
- Excess waiver benefit,
- Loss of Use benefit,
- Additional excess imposed on the Elderly, Young & Inexperience Driver, if the insurer offers 24hr Emergency Mobile Accident Response Services (this may just save you valuable time making a trip to the reporting centre), etc.
These are just some of the long list of additional benefits that determines best overall value to you for the premium you pay for. Oh yes. If it’s of interest, even the criteria to Young & Inexperience Driver, varies insurer to insurer, there could be one more suitable for you than another.
What about the hidden ones? To illustrate a thing or two among numerous such as the practice of No Claim Discount (NCD) – many have asked me if the NCD will be affected if they make a claim when it’s CLEARLY by no fault of them and this may include being rear-ended by a foreign vehicle, damage by a fallen tree, floods, etc. Try calling up the authorized workshops and probably many will decline to handle if you are making a 3rd party claim. They will almost always advise to claim own policy first. This affects the NCD of the innocent policyholder.
So will the NCD affected for the above scenarios? My opinion? “No Claim Discount Isn’t No Fault Discount”, generally, so long as a claim is made on your policy, NCD will be reduced on renewal. HOWEVER, the good news is that there are insurers where they apply this differently and some even word it into the policy terms to protect you the policy owner!
For those with claims history, it is an open secret that if you have 2 claims or more in 3 years, it is hard to find an insurer on renewal. When there is one, the premium you pay can be a very “painful” experience. Thus, for vehicle owners with at least 1 claim, we have to choose wisely – there are unpublished practices of insurers we will factor in when guiding you to the right insurer. Failing which, if there is to be another claim within next 3 years, will indeed be a very unpleasant experience for you. Cheapest is absolutely not the word.
Founded by Felix Kim*, the team behind CarInsuranceSingapore.Com – online since 2008 with the aim of helping vehicle owners like yourself secure quality motor insurance coverage at competitive premium and terms. You will be surprised at what you might discover as we scour the policy wordings of motor insurers and guide our clients on what to choose – beyond just the premium.
*Felix Kim, is a licensed agent registered with the ARB