Due to this COVID-19 episode, there are fewer vehicles on the road. Which means there should be fewer accidents. But yet, our car insurance premium remains the same.
In response to LTA’s decision to cease ERP charges, we can further save money by lowering the cost of our car insurance premium. Of course, this only applies if your car insurance policy expires between 7 April to 4 May 2020.
The mandated requirement for Singaporeans to stay home as much as possible due to the COVID-19 pandemic has reduced traffic drastically. Gone were the days of heavily congested roads and the rumbling of engines, at least for now.
Every vehicle is required to have motor insurance. Not only is it a prerequisite before you can renew your road tax, it is also important as it gives you coverage while driving.
With that being said, people shouldn’t be expected to pay excess for an expense they cannot use, especially during this uncertain time where household incomes will be affected.
Perhaps, this is a time when you should consider switching your insurance coverage to save on unnecessary cost.
There are certain uncontrollable factors that directly affects your premium. For instance, your Occupation, Driving Experience, Claims History, No Claim Discount (NCD) etc. For a comprehensive breakdown, refer to our previous article here.
However, there are also controllable factors such as the type of coverage you opt for. Here’s the breakdown of each coverage type:
Third Party Only (TPO) (Cheapest)
This covers the damages caused to a third party in an accident. Damages can include bodily injuries, damages to vehicles and other physical properties.
TPO provides the least coverage to the driver as it only covers the driver’s legal liability for causing damage to a third party. It is also one of the cheapest.
Third Party, Fire and Theft (TPFT) (Second Most Affordable)
TPFT is similar to TPO, but with a more extensive coverage. It covers whatever TPO covers, but also covers the driver this time.
TPFT covers damage caused by fire and/or theft to your vehicle as well.
Since it covers more, it is pricier than the above option.
Comprehensive (Most Expensive)
This provides coverage to the third party, and also extensive coverage to you!
It is the priciest plan out of the three, but provides so much protection that it is often the most purchased type of coverage.
Comprehensive coverage can protect you not just from fire and theft, but also from floods and other disasters. It also helps cover damage to your own vehicle if you get into an accident.
During this period of immobility and extenuating circumstances, perhaps you should re-evaluate on your car’s insurance coverage to save on expenditure. For example, you could opt for a higher excess, give up on a replacement car, or cancel any coverage in Malaysia.
With Motorist, vehicle owners will be able to compare different car insurance quotes at variableprice points. This helps to ensure the best possible quote for yourself.
The best thing about it is, it can be done online in three simple steps:
1) Submit Your Details
This can be done through the Motorist App or through our website.
2) We Will Help You Source for The Best Quotes
We will help you find the most comprehensive plan at the lowest cost.
3) Accept the Quote and Make Payment
Our friendly consultants will guide you along the way for a seamless transaction. No physical meetup required!
It is that easy and hassle-free. So hurry! Lower your insurance cost with Motorist today. And as always, stay safe!
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Keyword: COVID-19 Circuit Breaker: Should You Switch to a Cheaper Car Insurance Policy?