Why is it important to know how you’re charged for your motor car insurance? Because by knowing how you’re charged, you can somewhat get the best premium not only by comparing quotes, but also by influencing the factors that determines your auto (car or motorcycle) insurance pricing.

Insurers charge different premiums according to the risk they have to undertake. Most insurers in Singapore set the car insurance premium according to a range of factors. In general, the following are major factors that insurers take into consideration:

– Make and Model of Vehicle, Engine Capacity & Age of vehicle
– Nature of Vehicle Usage (private/corporate/commercial use, etc.)
– Age, Sex and Occupation of Driver
– Driver’s experience (No. of Years)
– Claims History of Driver
– Type of Cover (Third Party, Comprehensive, etc.)

Insurers will give each risk factor a weighting based on a range of statistics and their (insurers’) past claims information.

What do these information mean to you? You certainly may not want to change your vehicle nor change the type of cover nor the nature of vehicle usage. But you can try getting 6-7 quotes from different insurers because even though their coverage may be the same, their premiums may differ – sometimes by a long shot!

Some drivers also opt to insure their cars under another driver in their family who is more senior and who has more driving experience. Why do they do this?

In the perception of motor insurers, according to their statistics, a female has less risk than a male; a married individual has less risk than a single; and a more senior person has less risk than a young lad. (well, at least this is how the insurers see it)

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