A Comprehensive Guide for Car Insurance for Young Drivers In Singapore
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Car Insurance for new inexperienced drivers is usually expensive; this is because the chances of a young car driver getting into an accident are ten times higher than other groups of drivers. However, there is no way you can avoid paying for insurance in Singapore, car insurance is mandatory. There is no skimping it.
If you are looking for a quick guide on how to pick the right insurance policy for your young adult son/daughter, or if you are a college student looking for some tips on how to get the cheapest insurance policies available, this is the article.
What Should A New/Young Driver Consider When Looking for An Insurance Policy?
As a parent picking out car insurance for your young adult son/daughter or a college student (or as a new driver), it is just very tempting to opt for lesser policy coverage or the cheapest available option. That may not always be the best decision.
A young driver is usually inexperienced. For your peace of mind, pick the ideal insurance coverage. So, what should you look for in an insurance policy for a young/new driver?
- The Policy Coverage – There are three kinds of insurance policy; third-party car insurance, third-party, fire and theft, and comprehensive insurance.
- Find out the policy limitations – go through the terms and conditions thoroughly.
- Insurance Add-ons: Examine the company’s other insurance policy add-ons, such as roadside help and towing, NCDP (No Claim Discount Protector), and transportation allowance, that the new driver may need (this is useful if their car is in for maintenance or repairs).
How Can Young/New Driver Get Cheaper Insurance Premiums
Premiums are usually high for young drivers whose age is below 27 years or who have less than two years of driving experience.
In time, if you can prove to your insurance company that you are a safe driver, you are entitled to No Claim Discount, which entitles you to a 10% – 50% discount on your insurance premium—we at DirectAsia can offer our NCD60 policy, which is 60% off if you maintain your NCD 50% for 5 years.
To become qualified for the NCD is a long-term goal: some other hacks can lower insurance premiums from the get-go.
Do your research
Your budget, needs, and driving experience will determine the right insurance policy. An inexperienced driver will benefit from comprehensive insurance coverage, but there is no point in paying for add-ons that are not needed. Get quotes and compare rates from different insurance companies. Some insurers even offer insurance policies for new and inexperienced drivers.
Add an experienced/named driver to your insurance policy
A parent, guardian, or an experienced driver with an excellent record can register their name as co-driver on the new driver’s vehicle. By doing this, the insurance company is aware that the car is shared between two drivers and this will significantly reduce the cost of the insurance premium. Note that they should register the young driver as the policy owner or main driver; if a named driver is registered as the policy owner so the younger driver can have cheaper insurance, this is known as ‘fronting,’ and it is illegal.
Drive a car that falls under the low insurance categories
If you own an expensive or luxurious car, the more expensive it will cost to repair, the higher the insurance premium will be. If you want a cheaper insurance premium, get a cheap car. Buying a second-hand or cheap car is an even sensible option for an inexperienced driver because we can expect scratches and dents on the car as they learn.
Don’t drive often
It can be hard to get new drivers to ever out of their vehicles— especially the young ones— it is an opportunity to go everywhere and they are often so excited about the new driving experience. Insurers put a lot of factors into consideration; one of which is mileage. So how often you drive influences how much you will have to pay for your premium.
Take advantage of insurance premiums for young drivers
While you shop around your insurance, look out and take advantage of discount offers on premium while you buy your insurance.
Drive safely goes without saying
If you want to keep paying cheaper insurance premiums, then drive responsibly. No distractions, don’t drink and drive, don’t put yourself in danger, and move at excessive speeds because if you get into an accident in a short amount of time after buying your insurance, there’s a chance your insurance company will increase your premium.
Pay Voluntary Excesses
Increasing the excess on your compulsory excess can reduce the premiums you pay.
Make sure you are an authorised driver, and you have a valid license as a young driver. If you have any questions related to car insurance, connect with DirectAsia’s insurance experts at 6665 5555 or email us at [email protected]