There is no fixed cost for insuring a car. However, a car owner in Singapore is likely to pay an average of $862 in insurance costs. The cost may be lower or higher than the average figure, depending on the insurance company and its formula.
According to the Land Transport Authority statistics, there were over 640,000 cars in Singapore by the end of the year 2021. Since car insurance is a legal requirement in Singapore, all vehicles have at least one type of insurance cover.
It, therefore, means car insurance is a competitive business owing to the many licensed car insurance companies.
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What Determines the Cost of Car Insurance in Singapore?
Now that you have an idea of how much is car insurance is in Singapore, Several factors may determine the cost of your car insurance. These factors include but are not limited to your:
1. Age
Younger drivers are often charged more than older drivers. Licensed drivers aged 18 to late 20 are likely to get a higher quote due to their inexperience in driving.
Additionally, this age group has an exploratory behavior and has a high appetite for risk-taking, such as driving while drunk or driving beyond the allowed limit. These factors may explain the high number of young drivers charged with reckless driving.
On the other hand, senior drivers in the age bracket of 50-60 years are given cheaper rates. This variation can be explained by the many years of driving experience this age group possesses. However, this age group may also get a higher insurance cost if they have a bad driving history.
Middle-aged drivers have relatively favorable rates, especially if they have considerable driving experience, a good record, and no claims.
2. Car Brand and Model
Your car price and model are some of the significant factors in determining your insurance premiums. High-end cars such as SUVs attract higher insurance quotes compared to smaller cars.
Additionally, your car’s engine size, the potential cost of repairs, and the parking area may increase or lower your quotation.
The safety record is another significant aspect used to determine the cost of your car insurance. Car manufacturing countries have regulators and organized bodies that record car safety complaints and concerns.
Cars with higher safety concerns attract higher insurance rates than cars with a good record. When deciding which car to buy, always research its safety record to attract lower rates and safeguard yourself against safety-related injuries.
3. Car Age and Usage
How you use your car can affect the cost of your car insurance. You could be using your car for leisure only, work trips, business or a combination of all of them. Your insurance company may use this information to increase or lower the cost of your car insurance.
Additionally, suppose your occupation requires driving long distances or making many short trips. In that case, you are more likely to be involved in an accident than one who covers short distances and drives fewer trips. This scenario may increase the cost of your car insurance.
Moreover, an old car may attract a higher insurance premium than a new one. Unlike a new one, an old car is more susceptible to repairs and defects that may cause an accident.
4. Driving Record
Drivers with a recent record of traffic violations and accidents attract higher insurance rates than those with a clean record. You may say, “but the insurance company doesn’t have my driving record” You are wrong!
Using the Singapore Police Force’s System, the insurance company can get information about your demerit points and fines. They may also request that you query the system on their behalf. Try to maintain a clean driving record to attract better insurance rates.
Drivers with many years of experience get better car insurance rates and often attract No-Claim Discounts. This is unlike drivers who have a short driving experience and have lodged claims for compensation after an accident or car damage.
Conclusion
The cost of car insurance in Singapore is not cast in stone. Your insurance company determines it by considering the above factors and others such as your gender, credit score, proximity to disaster-prone areas, and driving location. The best way to know how much your car insurance will cost is to ask for a quote from your preferred insurance company. Most insurers have an online platform where you can get an automated quiet. You can also visit their offices with your car to get a more precise quote.
