02 Mar 2016
You've visited the showrooms, worked out your finances and now's the time to purchase motor insurance. Get up to speed before getting your vehicle insured.
1) What type of coverage is out there?
Generally, there are three types of plans: Third Party; Third Party, Fire and Theft; and Comprehensive, which is the most cost effective as it offers the broadest protection. As motor insurance is compulsory in Singapore, it's a matter of getting the right insurance for you. Plus, ask your insurer about add-on coverage for protection besides road accidents.
2) What type of driver are you?
You'll need to declare information about your driving history; from recent claims, to medical conditions that may affect your driving, as well as the purpose of your vehicle. You'll also be required to inform your insurer who else will be driving your vehicle. These allow for a more accurate risk assessment to help your insurer set the appropriate premium and excess.
3) What's your policy excess?
This is the first amount of any claim that you would have to pay before your motor insurer's contribution to the bill. The amount varies from one motor insurer to the next. You might go for a high excess level to enjoy low premiums, or choose to have it low for a higher premium.
4) What is No-Claim Discount (NCD)?
This is an annual discount that motor insurer will award you if you do not make any claim on your vehicle for a year or more. Do note that your NCD follows your vehicle but it can be transferred if you sell your vehicle for another. In other words, if you own two vehicles, your NCD for each vehicle is separate.
5) Who repairs your vehicle?
Your insurer may have restrictions on who can repair your vehicle. New vehicle owners usually prefer having their vehicles repaired at a dealer workshops or appointed agents of the vehicle manufacturer. In addition, insurers may determine a list of authorised workshops which would not always include authorised dealerships. Always check with your motor insurer before signing the dotted line.
Clear the confusion with these MSIG MotorMax Insurance Terms
Any person named in the policy as "Authorised Drivers" and/or any person named in Certificate of Insurance under "Persons or classes of persons entitled to drive"
Insured Vehicle: The vehicle you are insuring as shown in the Policy, fitted with standard equipment by the manufacturer or distributor without any modification to any parts, accessories, windscreen and/or windows, unless otherwise declared with details and endorsed under the Policy.
Young and Inexperienced Driver Excess: This applies in respect of a claim for loss or damage when the Insured Vehicle is driven by any person 26 years or below, and/or held a valid driving license for 2 years or less
No-Claim Discount Protector: An optional benefit that protects your NCD entitlement in the event of a first claim in the policy year and is available only to holders of 50% NCD at an additional premium
Transport Allowance Benefit: A daily benefit of S$50 payable (for MotorMax Plus only) if the period of the approved accident repairs to the Insured Vehicle is more than 3 days