Myth 1: My insurer will cover everything after a car accident
False. You would have come across “policy excess” or “standard excess” when buying car insurance. The amount you have to pay will be determined by type of excess covered in your car insurance policy. Now, let’s break it down:
Standard Excess: This is a set amount that you pay out of pocket before your insurer covers the cost of repairs. The typical range for standard excess is between $600 to $1000. This excess is in place to reduce the risk insurers bear in covering your potential losses, handing some responsibility back to the motorist/driver. Note that this excess will be higher for drivers below the age of 25 or has less than 2 years of driving experience.
Policy Excess: This is the amount that insurers will pay after having you pay the standard excess when making an accident claim.
Here’s how it works,
You make an accident claim for $1,000 and your excess amount is set at $600.
You will foot the bill for the first $600 and your insurer will pay the rest of the claim, which in this case is $400.
2. You have an accident and the quote for repairs comes to $500.
You will pay the full total for repairs as it’s still under your excess amount of $600. In this case, there’s usually no need to make a car insurance claim and you get to protect your no claim discount. But remember you still need to report any accidents or scrapes to your insurer no matter how small. If it is found that the car accident isn’t your fault then some insurers will pay the claim in full and waive your excess.
At Precise Auto Service, we specialise in car insurance claims / car accident claims / accident repairs / car body repairs / panel beating / spray paint. Being in the industry for more than 30 years, we have the right knowledge and equipment to fix up your vehicle.
Myth 2: I am covered when driving in someone else’s car
False. If you take a closer look at the terms and conditions laid out in your car insurance policy, you will notice that you (or additional drivers your policy includes) are insured only when driving your vehicle. To find out if you will be covered when driving someone else’s car would depend on the car insurance plan they have committed to.
Myth 3: Premiums for older cars are higher.
Partly true. However, there are other factors that are considered that will determine your car insurance cost:
Age of driver – Premiums are typically higher for drivers under 30, and of course, for older drivers over 70.
Gender – Industry data shows that women typically pay between $10 to $60 less per year than their male counterparts.
Driving experience – Lower premiums are rewarded to drivers who have many years of driving experience, especially if you have an exceptionally clean record as well.
Type of vehicle – broadly speaking, a bigger car engine translates to a higher premium. Be prepared to pay more if you are driving a luxury car!
Age of car – It seems intuitive to assume older cars will cost more in terms of insurance coverage. All things equal, there is no clear trend in the market, premiums are relatively stable until the 8th year.
Coverage – a more comprehensive coverage warrants a higher premium.
No-claim Discount – this is a discount give to your premium if you haven’t made any claims on your policy during the period of insurance.
Myth 4: Comprehensive car insurance is most value for money.
While the most purchased car insurance in Singapore is the comprehensive car insurance, it might not be the right car insurance for everyone.
The greatest benefit of the comprehensive car insurance plan is the insurer’s commitment to paying the full cost of repairs after an accident, or paying out the amount of its Open Market Value (OMV) if the cost of repairing is determined to exceed its OMV. However, when your car starts to depreciate over the years, the cost of repairs might exceed the OMV. In this case, the third party only (TPO) or third party, fire and theft (TPFT) car insurance might be a more optimal plan, with a much lower premium.
Tip: There are a list of coverage under the comprehensive car insurance package. For example, some insurers cover civil riots and acts of God like flooding, or offer it only as an add-on. Also, different policies sold by the same company can offer coverage for different items such as whether a courtesy car will be provided if your car is in the workshop, or whether your personal items are also insured.
Myth 5: Car Insurance Cost is the Only Thing That Matters
You bet, who doesn’t look at the annual premium when deciding the right car insurance? It might be foolish to commit to a policy you can’t afford. That being said, the cost shouldn’t be the only consideration.
When considering which policy to get, it’s important to evaluate the coverage that the car insurance offers. You don’t want to be in a situation where you end up losing more money when you meet an accident. When comparing car insurance policies, look not only at the prices but also the types and amount of coverage included, as well as the exclusions and limitations. It’s also important to check how the insurance company handles claims processing request and other customer service-related matters.
Myth 6: My Personal Items Inside the Vehicle will be Covered
False. Comprehensive car insurance policies don’t cover valuables such as cash, laptops, and cellphones left inside an insured car that’s stolen or damaged by fire or a fallen tree.
You’ll have to purchase an optional benefit, called the Personal Effects coverage, to insure personal belongings in your car. If you don’t want to pay for that, then avoid leaving your valuable items unattended inside your vehicle.
Myth 7: I can hide my driving history from my Insurers.
False. Thinking if you can outsmart insurance companies? Insurance companies run checks with the traffic police when they receive any new car insurance application. Any attempts to cover up or lie about a past traffic accident or insurance claims made previously would be discovered.
Furthermore, you might risk insurers having to raise the premium or void a policy if you do not declare the truth to them.
Get Your Free Insurance Quotation now!
To find out how much your car insurance will cost, get a quote now or call +65 9489 7930 to find out more.
At Precise Auto, we do not only cover your car insurance. We also care about your personal accident coverage. Hence, we have partnered with one of the largest insurance company in Singapore to extend this offer to all of our clients!!!
From 1st October 2020 to 31st December 2020, we are offering a one year FREE personal accident insurance plan insured by Aviva Financial Advisers to you for any 5-stars review made at Precise Auto! Don’t miss out this limited time offer!
-Ong H. Y.