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We've got tips to help you get the cheapest car insurance premiums in Singapore. Learn more about NCD, DIPS, COM and how opting for higher excess can help you save money!
Category: Car Ownership Advice
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Even though the cost of living in Singapore is high and nothing ever comes cheap, purchasing the cheapest car insurance with the best coverage for your car is still possible, if you know how.
We've answered some of the frequently asked questions about how to get cheap car insurance and we've come up with 9 tips on how you can get the cheapest and the best car insurance in Singapore.
9 tips on how to get the best and the cheapest car insurance
- No-Claim Discount gives you lower premiums
- A higher excess lowers your premium price
- Receive additional discount with Certificate of Merit (COM)
- The sooner you get your driver's license, the cheaper your premium
- Going to insurer-authorised workshops keeps premiums low
- Avoid modifications to pay lower premiums
- Opt-out of personal accident coverage to save more on premiums
- Refrain from adding named drivers to keep premiums low
- Opt-out of courtesy car benefits for cheaper premiums
No-Claim Discount gives you lower premiums
For private cars owners, your NCD increases by 10% each year you stay claim-free. By your 5th year of insurance renewal, you'll be entitled to a maximum of 50% discount off your insurance premium.
| Period of Insurance with no claims | Discount on renewal |
| 1 year | 10% |
| 2 years | 20% |
| 3 years | 30% |
| 4 years | 40% |
| 5 years and more | 50% |
Don't worry, your NCD privileges won't be instantly revoked if you get into an accident. This is one of the many car insurance myths that drivers believe in.
Here's all you need to know about NCD for car insurance.
A higher excess lowers your premium price
Suppose your excess is set at $2k. If you've got repairs of up to $5k, you only need to pay for the excess of $2k. The insurer will pay the remaining $3k. However, if your repair bill amounts to less than $2k, you'll need to pay the full repair cost by yourself.
Some drivers rather forgo this discount and opt for lower excess because it lowers their financial risks when driving. It all boils down to which is cheaper to you – paying a lower excess when needed, or paying low premiums yearly.
Most insurers allow the excess to be adjusted based on the driver's budget and circumstances. Be sure to set a limit that you can commit to.
Receive additional discount with Certificate of Merit (COM)
COM entitles you to a 5% discount on top of your NCD. To qualify, drivers need to have clean driving records and be claim-free for three years. The Traffic Police will notify eligible drivers and award them a COM.
This discount is popularly known as the "offence free discount". A few key insurers like NTUC Income, AIG, Directasia and Aviva currently don't offer this discount. So, check if the discount is redeemable with your preferred insurer before purchasing a plan!