Insurance

The 5 Factors Affecting Your Car Insurance Premiums

With car insurance premiums dependent on an individual’s risk factors, here are the 5 factors that will affect your premiums. Updated on 16 October 2020.

  • Phuan Wei Ning
  • |
  • Published on 26 Sep 2019

Did you know that most car accidents happen on a Friday evening?1 With car insurance mandatory for all car owners in Singapore, many buy with the intention of purchasing the cheapest plan. However, do you know what factors affects your premiums?

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#1 Age

The first factor affecting premiums is age. While this factor is beyond our control, insurers typically deem those under the age of 30 or above age 70 as a higher risk due to their increased risk of accidents. As such, drivers in this age groups are likely to have higher premiums.

Apart from the higher premiums, they may also be ineligible for online car insurance quotations with them required to directly request for a quote from the insurer.

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#2 Driving experience

Similar to the age factor, inexperienced drivers are also seen as a higher risk and are likely to be subjected to higher premiums.

Drivers are considered inexperienced if they have less than 2 years of driving experience in Singapore. This means that even if you drove extensively abroad but have less than 2 years of experience in Singapore, you are still considered inexperienced. Inexperienced drivers may also be uninsurable for online car insurance quotations. However, FWD Car Insurance allows online quotation even for those with less than a year of experience thus making it suitable for inexperienced drivers.

FWD Car Insurance
Sompo Private Car Insurance
Etiqa Car Insurance
Minimum experience needed for an online motor insurance quotation
Less than a year


2 or more years of driving experience
2 or more years of driving experience

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#3 Gender

Statistics have shown that male drivers are more likely to be involved in a fatal car crash2 with males also 1.4 times more likely to get into a road accident.3 As such, females are seen as the more careful drivers and a lower risk. With car insurance premiums tied to the risk factor rating, females will therefore enjoy lower premiums due to the safer risk profile of their gender.

Premiums for a female*
Premiums for a male*
FWD Classic Plan
$932.60
$951.87
Etiqa Comprehensive Plan
$1065.52
$1080.94

*Profile: Age 39, married. 5 years of driving experience with 30% NCD, 0 demerit points and no claims in past 3 years. Car model: Honda Civic 1.6, registered and manufactured in 2019

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#4 Driving history

Your driving history shows insurers how safe you are as a driver with claims history and driving record of the last three to five years especially important. The more claims you make in recent years, the higher your premiums are likely to be.

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#5 No-Claims Discount (NCD)

With No-Claims Discount (NCD) reflecting an individual’s recent claims experience, a high NCD would indicate a record of safe driving. As such, drivers with higher NCD are usually rewarded with lower premiums. To secure lower premiums, you may wish to purchase a NCD protector.

For private car policies4:

Current NCD
NCD after 1 claim
50%
20%
40%
10%
30% and under
0%

With a NCD protector, you will be able to make a claim once under your policy without affecting your NCD status. Your NCD protector will cease after a claim.

Alternatively, FWD offers free lifetime NCD protection for drivers who currently have a 50 per cent NCD. This rewards safe drivers with greater savings and allows drivers to continue enjoying 50 per cent NCD even after multiple claims.

(See "3 Things Your 20 Years Old Policy May Not Tell You")


Ongoing Car Insurance Promotions (Updated 16 October 2020)

FWD Car Insurance
Sompo Private Car Insurance
Use promo code "IFAST" to enjoy preferential rates for your comprehensive private car plans.


-

Information is accurate as of 16 October 2020 with changes subjected to the insurer's discretion.



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1Source: https://www.straitstimes.com/singapore/most-car-accidents-happen-on-friday-evening-says-insurer-aviva

2Source: https://www.iii.org/fact-statistic/facts-statistics-highway-safety#Sex%20Of%20Drivers%20Involved%20In%20Fatal%20Crashes,%202008-2017%20(1)

3Source: https://www.straitstimes.com/singapore/most-car-accidents-happen-on-friday-evening-says-insurer-aviva

4Source: https://gia.org.sg/consumers/motor-guide/no-claims-discount.html


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