Basic Terms to Know for Singapore Vehicle Insurance Policies


Prior to entering the thick of points, you might want to familiarise on your own with these car insurance Singapore terms:

  • Excess

In case of an accident, “excess” describes the first part of the financial damage you will be in charge of. The insurer will then cover the staying sum.

For instance, your vehicle runs into another vehicle, knocking off its fender. For this, you’re asked to foot a sum of $1,200. If your extra is $200, you’ll essentially only pay that quantity, while your insurance company covers the staying $1,000. Choosing a greater excess will in most cases lower your costs.

  • NCD or No-Claim Price Cut

It’s regular to get involved in tiny vehicle crashes along the road. As a matter of fact, these are almost unavoidable. However, if your driving record is not harmed, your vehicle insurance provider may supply a discount rate on your premium with time in what’s referred to as NCD or No-Claim Discount Rate.

When it comes to some vehicle Insurance policies, as an example, the Lifetime NCD Guard is granted to motorists or vehicle proprietors that do not file for any type of at-fault case over a duration of five policy years.

How much Does It Cost?

The truth is, there is no fixed base price for vehicle insurance, your costs vary greatly depending on these aspects:

  • Your age: If you’re under 27, be ready for a higher excess of around $2,500. Drivers with at least three years of experience commonly appreciate lower costs.
  • Marital Status: People who are married and who have individuals they need to care of, like their partner and children, are most likely to be more mindful when driving, that’s why premiums can set you back less than that of somebody solitary.
  • Driving experience, in addition, to case history: Vehicle drivers without a history of accidents, at-fault insurance claims, or demerit factors might be provided reduced premiums.
  • Age of vehicle, as well as vehicle model: A standard car indicates a lower premium. Conversely, luxury cars, with greater engine capacities, will likely incur greater premiums.
  • Past insurance claims experience: Having a great driving record without insurance claims will get you a more affordable premium.
  • Current NCD: No declared discount because you’ll pay less for your costs when your NCD is higher. And if you’re at 50%, you’ll maintain it for life with some insurance provider at no extra cost.
  • Bad Mark Details: Utilizing some insurance policies, you’re rewarded for safe driving, as well as you get a discount rate from the Traffic Cops for your Certificate of Merit.