Factors to Consider Before Buying a Car Insurance Plan

Car Insurance Plan

Buying a car in Singapore is relatively getting hard because of the insurance regulations. Before letting your car get off the market on the Singapore roads, you should first buy a car insurance policy.

However, when life tries to get complicated, people and companies think big on how to solve such complications. In this regard, car insurance in Singapore has been made hassle-free by insurance companies. These insurance companies cover broad risks that any car can face while operating.

Car insurance coverage

Coverage is the risk extent that an insurance company will pay for in case of risk occurrence. Depending on the type of coverage a company sells, you will choose which one fits your needs, but remember, the more extensive the coverage, the higher the price. Car insurance in Singapore is divided into three major plans. These plans are priced differently by several companies, but the difference is insignificant, depending on the policy you are purchasing.

Third-Party Only( TPO): This is the most basic car insurance plan you can buy in Singapore. The third-party policy only covers injury or death to a third party and any damage to other people’s property. This insurance type cover does not cater to damage to your vehicle. Interestingly, with a TPO, you may later expand to a larger coverage.

Third-party fire and theft: This is the second-level car insurance plan available in Singapore. It is slightly more expansive and expensive than the TPO. Third-party fire and theft insurance cover fire damage or theft of a vehicle in addition to the damages on the third party. This plan, too, does not cover other damages to your car.

Comprehensive: As the term suggests, this coverage plan is more extensive than others, meaning it covers other risks not covered by other plans. Precisely, on top of what third party, fire, and theft covers, this plan also takes care of the repair and replacement for damages incurred through accidents on your car. It can also cover medical expenses and personal bodily harm. The comprehensive plan is complete, and every car owner seeking insurance in Singapore might consider buying it.

Having either of these plans saves you from the stress of the unknown while you are driving.

Factors to consider before buying a car insurance plan

Before buying a car insurance plan, you need to consider and analyze some aspects of car insurance that will help you make a sound decision.

  • Cost: Each insurance plan has a unique price plan. The price also varies from one company to the other. At an individual level, you should evaluate your financial capabilities and the cost of insurance plans before selecting which one to buy and from which company.
  • Authorized or unauthorized workshop: Many insurance companies have a policy where an insured person should choose to get repairs in their authorized workshops. If you have a better workshop for your car, you should go for insurance companies that offer you the flexibility you desire.
  • Additional driver: If you have someone else to drive your car, you need to seek an insurance company that can add this driver’s name and pay for damages that may occur when your car is with the designated driver.
  • Roadside assistance: Not all companies offer 24/7 roadside assistance in case of an accident. For your peace of mind while on the road, choose a company that offers roadside assistance anytime they are contacted.

Conclusion

Car insurance is essential to every car owner who values their car investment. Several insurance companies in Singapore may be helpful to you if you wish to insure your car. Still, first, you should analyze your financial capabilities against your needs before buying a car insurance plan.