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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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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Excess (also known as Deductible) 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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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 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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