Motor Insurance Singapore » Must-Know Information for Savvy Car Owners

7 Ways to Reduce Petrol Consumption

admin — Mon, 20 Apr 2009 06:07:04 +0000

Reducing Petrol consumption can help lower your fuel costs. And I’m sure we don’t need more persuasion to retain more money in our pockets as Singaporeans. So let’s jump into it.. Now!

1. Drive at the correct speed

More than 50% of your engine’s power is used to overcome aerodynamic drag (air resistance). Since fuel is burnt more rapidly at speeds above 90km/h, as a rough gauge, traveling at 90km/h on the expressway would not only be safer, it keeps the cops away and helps you save money. Imagine… your car burns 15% more fuel at 100km/h, and 25% more fuel at 110km/h than at 90km/h. Perhaps the speed limits make some sense after all…

2. Maintain correct tire pressure

Deflated tires generate excessive heat, wears out faster and increases rolling resistance (= more fuel consumed). However do not over-inflate as this might reduce the tire’s “grip” on the road, causing potential danger if you need to do an emergency brake. Checking the tire pressure every 1-2 weeks will help ensure a smooth, safe ride. You can read the recommended tire pressure on the side of your tire printed by the manufacturer.

3. Watch your engine’s RPM

Your car’s engine runs most efficiently between around 1,500 and 2,500 rpm. Therefore shift gears as soon as possible, before your engine reaches 2,500 rpm. On auto-transmission cars, you can always switch to “economy” mode and avoid stepping too hard on the gas. In this way, the transmission will shift gears faster and the gradual acceleration will ensure that less gas is burnt.

4. Unload unnecessary stuff from your car

Fact: Every additional 50kg load added in your car increases fuel consumption by two per cent. So avoid carrying unnecessary stuff in your car.

5. Drive smoothly

Another fact: You’ll use up to six times more fuel to move a car from a dead stop. Therefore anticipate the traffic ahead and avoid bringing your car to a complete stop. Also, you can reduce fuel consumption by up to 10 per cent if you do not brake or accelerate unnecessarily. Avoid following another vehicle too closely – this alone will help you avoid 90% of all unnecessary brakes and hard accelerations.

6. Clean your air filter regularly
Clogged air filters can increase fuel consumption by up to 10 per cent. These airflow resistance promotes incomplete combustion and this cause the efficiency of your engine to go down — way down. So clean up or service your air filters when it’s time to.

7. Switch off your engine when not in use

We often like to leave our engines idling while waiting for passengers or to make an emergency phone call at the side of the road. However if you leave your engine idling for more than a minute, it consumes much more fuel than restarting (your engine). Contrary to popular belief, the increased wear and tear from this practice is negligible.

So follow these simple steps and you’ll see your petrol consumption fall and your fuel efficiency increase.

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Frequently Asked Questions (FAQ)

Car Insurance (Singapore) Premiums – The Insider’s Guide on How It’s Computed

admin — Mon, 06 Apr 2009 01:49:46 +0000

Understanding your car insurance (Singapore) premiums can be quite a baffling thing. Numerous drivers have questioned about their car insurance premiums and yet have little understanding on how it all works.

This post give readers an insight on how car insurance companies in Singapore price their premiums – a real insider’s guide to the inner mechanism of how it works.

Car insurance premium is derived based on a Points System that takes mainly the following 2 categories of factors into consideration:

Category #1: Characteristics of Driver (Insured)

a) Age of Driver. Here’s the age group that most companies use and how much it affects your premiums:

18 to 21 yrs old — $$$$
22 to 25 yrs old — $$$
26 to 30 yrs old — $$
31 to 65 yrs old — $

b) Gender & Marital Status. Generally cheaper for females as compared to males; cheaper for married compared to singles.

c) Driving Experience. Calculated from the time you got your driving license, not your actual driving experience:

0 to 1 yrs experience — $$$$
1 to 2 yrs experience — $$$
2 to 4 yrs experience — $$
> 4 yrs experience — $

d) Job Nature (Indoor/Outdoor). Self-Explanatory.

Indoor – $
Outdoor – $$

e) No Claims Discount (NCD) – aka No Claims Bonus (NCB). This is the premium discount you can enjoy if you have not made claims with your insurance company

You get 10% NCD each year if you don’t make any claims during your policy year. Your NCB can accumulate up to 50% max.

For example, if your auto insurance is $1,000 and your NCD is 20%, the actual premium you’ll have to pay is $800.

If a claim is made during a policy year while you are still enjoying NCD, the NCD will be reduced the next time you renew your motor insurance.

f) Certificate of Merit Discount. A 5% discount is awarded to you (after deduction of NCD, if any) if you have NO traffic offense / demerit point(s) in the past 3 years.

Category #2: Characteristics of Vehicle

g) Engine Capacity (cc) & Engine Type. The lower the engine capacity, the lower your premium. Engine type refers to Normal or Turbo engine – obviously the turbo engine is going to be charged more.

h) Year of Manufacture. This generally means the year which your car is made/register.

i) Body Type. This refers to the type of car, eg. saloon, MPV, SUV, etc. Company usually charge more for unusual types of vehicle.

j) Off Peak Car (OPC). Generally, insurers tend to offer a slight discount for OPC.

Most car insurance (Singapore) quotations are valid only for 14 days, some for 30 days. And the price of car insurance premium change frequently – some people believe that it changes every 6-12 months. Therefore while Company X may offer the best deal this year, Company Y may be more competitive the next year.

This implies that you may have to compare different insurers’ quotes each time you renew your car insurance. You should get a good deal after comparing at least 6-7 companies. Of course, if you want the cheapest of all you’ll have to look for quotes from all the 20++ motor insurance companies in Singapore – and not all of them are good, really. In fact only some are worth looking at.

To compare several quotes, you can take 3 mins to fill in the form at Motor Insurance Singapore.

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Geographical Area of Coverge

admin — Mon, 12 Jan 2009 18:15:39 +0000

Have you ever wondered if your motor insurance is still effective as you drive up North into West Malaysia for a road trip?

The fact is your motor car insurance policy covers you within Singapore, West Malaysia and even parts of Thailand, within 50 miles of the border between Thailand and West Malaysia. That’s how far motor insurers in Singapore cover you.

Your insurer will bear the risk of any losses or damages or liabilities incurred within the above boundaries.

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How Do Insurers Underwrite Your Motor Car Insurance Policy?

admin — Tue, 23 Dec 2008 14:01:35 +0000

In the old days (before Sep 1989), insurance premiums were derived using a standard table provided by the General Insurance Association of Singapore (GIA). This table is known as a Motor Tariffs Table.
Under this system, factors such as the ones below were used as a basis for computation:

- Type of Cover,

- Engine Capacity,

- Carrying capacity of Vehicle,

- Car usage, and

- Value of vehicle

After that, the Motor Tariffs Table evolved into the Points Rating System. The major difference between these two systems is that the Points Rating System takes into consideration the characteristics of the driver – age, marital status, indoor/outdoor job, et cetera.

Then in Jul 2001, the GIA formed a Motor Insurance Task Force (MITF), which promulgated a Risk Factor Premium Rating System, improving upon the previous system.

Under this system, points are awarded to various risk factors, based on the industry or insurer’s own risk profile and claims experience.

This means that if there’re lots of people who’re making claims against a particular insurer compared to the other insurers, this insurer will tend to (or rather…have to) charge higher premiums so as to conform to the Risk Factor Premium Rating System. And of course this REALLY makes sense for this particular insurance company’s financial health as well.

Enough of the insurers. Now, let’s talk about you…

What does the above information mean to you?

It implies that even though you have submitted the exact same information to different insurers, the premiums that you’re charged for your auto insurance WILL be different. This is because the points that you’re awarded (internally) by the insurers will be different, due to the company’s own risk profile and claims experience.

Therefore the only logical action that you HAVE to take is to compare several different quotes from different established and reputable auto insurance companies. You’ll thus be able to tell which motor car insurance company gives you the best deal.

Of course it’s a great hassle to do so, but it’s well worth it. And you don’t have to do it yourself if you have a car insurance quote comparison service working for you.

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What Has The Motor Insurers’ Bureau of Singapore (MIB) Got To Do With You?

admin — Tue, 23 Dec 2008 13:37:03 +0000

First, let’s look at why the MIB was set up. Its main purpose is to handle motor claims in cases where (1) the negligent driver cannot be traced/located, (2) the negligent driver possess an invalid motor car insurance policy, or (3) the negligent driver is not covered by any auto insurance at all.

Under the above situation, the MIB will seek to compensate the third party (victim) for any bodily injuries or death. Unfortunately damages to anything other than death and bodily injuries (take for example, property damages) are not claimable from the MIB.

To undertake this public responsibility, the MIB is funded by a small contribution (levy) paid by its members. And all motor insurers in Singapore are (mandatory) members of the MIB, and their contribution is based in proportion to the motor insurance premium income they earn.

This is a little known information although it’s being taught to all drivers during driving theory lessons. Little known, yet it may be useful. You never know – you may be able to help a helpless soul with this information some day in the future.

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Do You Know What To Do In A Car Accident?

admin — Mon, 22 Dec 2008 12:10:43 +0000

Below are the things to do if you happen to be involved in an accident – hopefully none of us ever need to apply these steps. But as the wise saying goes, always prepare for eventualities.

What to Do During An Accident

Step 1

Stay calm. This is not easy, but you HAVE to. This usually determines how the situation will turn out. The other party may be raging mad, yet staying calm and keeping your cool helps ease the tension. So take a deep breathe, stay calm.

Step 2

Check if you or your passengers are injured, and call for emergency medical help (like the ambulance) if necessary. Then approach the other driver and check if he or his passengers are injured.

Step 3

Do not remove vehicles unless it’s necessary to extricate people (perhaps from inside the car or under the vehicle) or send the injured to hospital.

Step 4

Exchange information with the other driver – vehicle registration number, name of driver & NRIC, contact number, insurance company and policy number. Do not apologise or admit any faults and do not argue over who’s wrong. Keep silent ESPECIALLY if the other party pressures you or threatens you.

Step 5

Take photographs of the accident site, damage on vehicles, tire skid marks on the road, et cetera, if you have a camera on hand.

Step 6

Report the accident to your insurer immediately after the accident.

If there is any personal injury, you must lodge a police report within 24 hours of the accident. Hopefully there isn’t any injury – and in this case, a “Non-Injury Motor Accident Report” will have to be submitted through your insurer. (The staff at your insurance company’s office will know what to do) Ideally, witnesses and passengers should also make reports, which helps with investigation.

BUT if the accident is just a small dent at the back of your bumper, please exchange information, take a quick snapshot from your handphone, and move your vehicle away. Small damages are not worth claiming – and take note that you can’t make claims if the damage doesn’t exceed the excess amount.

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Finding The Cheapest Car Insurance Quote

admin — Sun, 21 Dec 2008 13:24:31 +0000

Looking for the cheapest car insurance quote can be quite a hassle – looking up different auto insurers, putting together different quotes with different benefits, doing research on which insurance companies are reputable and which one makes you jump through hoops when you need to claim, etc.

One way to skip through all these trouble is to engage a motor insurance comparison service. Such service applies to both personal and commercial vehicles.

After submitting all relevant and necessary information, you can access the cheapest insurance quotes with maximum benefits for your automobile. (Usually after 1-2 working days) Even if you’re riding a motorcycle, the comparison service can serve you to fetch the best deal for you as well.

Why Do Quotes From Insurance Companies Differ?

Auto insurers charge premiums according to a pretty standard criterion. And the reason why their quotes are different is because the benefits that they offer are different. Also, the insurer’s claim experience differ, therefore their risk tolerance are different.

In light of the above, the cheapest car insurance quote may be lacking in some benefits – benefits that are provided by all other insurers. Yes, there are those very cheap auto insurance quotes that covers exactly what the rest of the insurers are offering. However, sometimes, it takes forever to claim. That’s why motor insurance quote comparison services do not usually recommend the very cheapest quote. Instead, a cost-benefit comparison approach is usually taken.

By the way, you didn’t hear the “take forever to claim” part from me – go talk to the rest of the car owners and you’ll know which insurer has good (or not so good) claims reputation.

How Do The Insurers Price Your Car Insurance Policies?

Insurance companies price each policy according to the risk they’re undertaking to insure you. Risk is calculated by historical (and statistical) claims data. Insurers often regard females and older drivers as safe drivers, thus giving them more discounts and benefits. Statistically, young male drivers cause the most road accidents. Thus, drivers that fall into this category often pay a higher premium for the same benefits.

Auto insurance companies will reduce your monthly premium if you can show proof of a clean driving record. Providing information like No Claim discount (NCD) is important and will help you get the best deals. You can find out your NCD amount from your existing insurance company.

Another factor that determines the price of your insurance premium is the make and model of your car. For example, driving a sports car will cost you more on car insurance expenses compared to an average car. This is because cars that are faster and more powerful are considered more dangerous (riskier for the insurer).

All these basic factors are what auto insurance companies consider when giving you a quote. Thus, it is important to provide at least the above information when looking for car insurance quotes.

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What is the Meaning of “Excess”?

admin — Sat, 20 Dec 2008 16:55:33 +0000

Excess is included in a private motor insurance to deter motorists from making small claims. Excess is the initial amount of any claim that the auto insurer will not pay. In other words, the car owner has to bear this cost.

For example, if the cost of your claims amount to $2,000 and the deductible is $600, you’ll have to bear $600 while the rest can be claimed from the insurer. An illustration is drawn for you below:

If the total amount (for repairs, damages, etc) is less than the excess ($600), nothing is payable by the insurer.

But…why do the insurers want to impose such an idea on motor car insurance? Because…

- The insurers hopes that the drivers will take more care and responsibility as the driver still has to pay for damages not exceeding the excess amount.

- Claim payouts (by the insurers) are reduced by the excess amount, the risk/liability of the insurer is also reduced. This also lowers the insurance premiums.

- There are fixed costs incurred to service each claim, it doesn’t make sense (economically) for the insurers to attend to each and every small claim.

- For customers with bad claims experience (profiled as high risk for the insurers), higher excess can be imposed to allow their car insurance to remain in force. This also keeps their premiums within financial reach.

You can certainly request for excess to be removed or reduced in some cases. But since the insurers are taking on extra risk, your premiums will go up by quite an amount. For drivers under 21 (or 23) years old, such excess cannot be removed.

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How Are You Charged For Your Car Insurance Premium?

admin — Fri, 19 Dec 2008 17:22:18 +0000

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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Car Insurance Terms That Can Save You Money

admin — Fri, 19 Dec 2008 05:30:37 +0000

Car Insurance Terms That Can Save You Some Money

In Singapore, knowing these motor car insurance terms may save you a couple of hundred dollars as you are shopping for an auto insurance package for your vehicle.

The idea is to know what you need and what you don’t. For example, you may not need a courtesy car or towing/roadside assistance. Adding these into your coverage may cost you a little more than you’ll need to pay for.

So get familiar with these terms now:

Motor Premiums
This is the amount ($) you pay to insure your car from eventualities. Ensure your premiums commensurate with your risk profile. Always make sure that you’re not over-paying for your car insurance (or motorcycle insurance).

Excess Amount (aka Deductible)
Find out the amount that you might be required to bear when a claim is made. Eg. If your claims amount to $2,000 and the deductible is $600, you’ll have to bear $600 while the rest will come from the insurer’s pocket.

Every insurer will impose excess on policies – the higher the excess, the lower the premium charged and vice versa. And each insurer will state their excess amount when they make their offer (quote) to motorists.

No Claim Discount (aka No Claim Bonus / No Claim Entitlement)
No Claim Discount (NCD) reduces your car insurance premium significantly. If you have an NCD of 20%, you’re given a 20% discount of the premiums that you’re supposed to pay. You are entitled to NCD on renewal if you have not made a claim for a year. This is how NCD is calculated for subsequent years:

If a claim is made during a policy year while you are still enjoying NCD, the NCD will be reduced at the next policy renewal. The reduction of NCD is computed as follows:

Windscreen Damage
Many insurers provide you with windscreen cover (free of charge) but apply an excess of $100 for each claim. (check insurers’ policy)

Personal Accident Cover
Some insurers offers personal accident covers for you and your passengers as part of their insurance plan. (This may or may not be necessary for you, depending on whether you have an existing personal accident coverage)

Repair Options
Restrictions on repair workshops and new part replacement applies. Usually cheaper premium policy will tend to have more restrictions. This contributes to the advice that the cheapest motor car insurance may not be the best.

Towing/Roadside Assistance
Some insurers provide towing and roadside assistance in their plan.

Courtesy Car
Some insurers provide a courtesy car while your vehicle is under repair.

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