9 ways to lower your car insurance premiums

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9 ways to lower your car insurance premiums

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

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

Are you ready to take notes?

No-Claim Discount gives you lower premiums

Your NCD increases by 10% every year you stay accident-free (Capped at 50%)!

As its name suggests, drivers with no claims can get a discount off their car insurance premiums. Insurers award drivers with NCDs when they've stayed clear of accidents.

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

Would you rather have a lower excess, high premium? Or a higher excess, low premium?

If you opt for a higher excess, you'll get lower premiums but if you get into an accident, you'll have to fork out more cash An excess is a sum you're required to pay when making a claim on your policy. Opting to pay for higher excess lowers your premium, but you must be prepared to pay for costly repairs.

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!

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The sooner you get your driver's license, the cheaper your premium

Stop procrastinating and get your driver's license even if you do not intend on buying or driving a car now

Given that the more experienced drivers are less accident-prone, insurers won't charge you a higher excess if you've had your driver's license for more than four years.

Otherwise, the insurers will label you as a young driver. Young drivers are seen as higher risks and will thus be charged a higher premium price. This is one of the many factors affecting car insurance quotes.

Even if you don't plan on driving much, it's still a great idea to get your driver's license early – you'll be en route to your cheapest car insurance ever and your future self will thank you.

Going to insurer-authorised workshops keeps premiums low

It's cheaper to head to an authorised workshop, one that's been approved by your insurer, rather than any other workshop you prefer.

Unfortunately, life does not always go as planned. Should you land yourself in an accident and you are not sure which other car service workshops are approved, give your insurer a call and seek advice. Learn more about other common insurance claim mistakes to avoid.

Avoid modifications to pay for lower premiums

It would be best to speak with your respective insurer before you install any modifications

If you've got undeclared car modifications, for fear of raising your car insurance premium, your insurer may refuse to cover your claims or even rescind the policy. This will burn a serious hole in your wallet.

On that note, the fewer additions you have, the lower your premium will be. You will have to give up on your car modification dreams if you insist on buying the cheapest car insurance.

Every insurer has a list of add-ons, all of which will raise your premium price. Car modifications fall under that category – even if they are LTA-approved. Find out more about getting proper insurance coverage and familiarise yourself with the benefits that come with different insurance plans.

Opt-out of personal accident coverage to save more on premiums

When it comes to car insurance policies, there's a section that protects you in the case of an accident. It's a section called "Personal Accident (PA)" coverage and there's a payout that comes with it.

However, if you already have a PA insurance policy that is separate from your car insurance, you should opt-out of PA coverage in your car insurance policy – be sure to check if your insurer allows for this!

Refrain from adding named drivers to keep premiums low

Adding named drivers makes sense if you want your car and specific people to be covered under the insurance policy

Adding a named driver will incur higher costs, especially if the named driver is deemed to be a young and/or inexperienced driver.

The younger the driver, the more expensive your premiums will be.

Only add in a named driver when you want them to be covered by the insurance policy (for the reckless son in the family who always gets into trouble), if not you'll be unnecessarily raising your insurance premiums significantly.

Opt-out of courtesy car benefits for cheaper premiums

Some insurers offer a courtesy car as a replacement when your damaged car is being repaired at the workshop. This is useful for drivers who absolutely require a car to use daily.

If you're not too reliant on a car, you might want to opt-out of this under your car insurance policy. Find out if it's possible under your preferred policy – it'll save you a decent sum.

Current car insurance promotional codes for cheap deals

Aside from getting your NCD and COM discounts, you can get the cheapest car insurance premium when buying policies with promotions.

Here are some of the ongoing promotions that can help you save more:

Company	Promotions
DirectAsia	Complimentary Car Inspection with a purchase of any new car insurance policy Get an extra 10% off insuring two or more vehicles Refer A Friend Programme for Car Insurance
Etiqa	Enjoy interest-free instalment payments when you pay your premium with Maybank Credit card
FWD	Refer a friend and get cash rewards Use promo code FWDVALUE to get 15% off Comprehensive Plan only
Aviva	Save 25% on all your premiums with promo code POSTCB25 Get up to 36% off for MINDEF, MHA & POGIS policyholders
AIG	AIG Auto Insurance KrisFlyer Miles Promotion Save up to 15% with AIG On the Go ap
AXA	Customisable car insurance with 0% interest-free instalment
Budget Direct	Refer a friend to get $20 shopping vouchers and your friends get 5% off any policy they buy
NTUC Income	Get up to 65% discount with good driving with Drivo Get 69% discount on Drivo when you’re driving less