Motor Insurance in Singapore
Change is the only constant thing that is happening around us. It is happening in all industries. Now that there are more direct insurance companies in the market. Consumers will have more choices to choose from. In Singapore it is compulsory to have a valid motor insurance in order to be able to drive the car on the road. Some consumers change insurer every year, some prefer to stay with the same insurer. Regardless the choice, you need to know what you are buying into, so that you can reduce any unexpected rejection and displeasure should an unfortunate event arise. Below is a couple of common jargons used for motor insurance.
What is excess in motor insurance. Is it good to have a high excess? Excess amount shown in a policy document means for each loss/accident happen, insurance company will not reimburse you the amount shown in the event of a claim. Consumers who feels that they are safe drivers would not mind even increasing the excess to reduce insurance premium. However, there will still be others who prefer to have minimal or $0 excess. So that in the event of a claim, no payment is required on their part.
No Claim Discount (NCD )
No claim discount or more commonly known as NCD gives a discount in your premium should you or third party not make any claim during the one year policy period. For new drivers or new car owners, the NCD always starts off from 0% after having a good record for 5 years, your NCD will be increased to 50%.
Knowing these couple of common jargons is a good start to slowly understanding the importance of motor insurance coverage. (See: Buying Car Insurance: You Better Shop Around). Always keep in mind, even if we have a valid motor insurance, our car or even commercial vehicle must still be kept in an efficient and roadworthy condition. This is to protect not only ourselves, but also our loved one and other road users around us.