Car insurance—everyone’s got it. Mostly because it’s illegal in Singapore not to. Even though everyone’s got it, car insurance premiums can look wildly different from one person to the next. You and your friend might have a lot in common but, your car insurance premiums aren’t likely one of those things. You would be surprised at the factors that go into deciding the fate of how much your premiums will cost you—but knowing could help.
Don’t understand why your insurance premiums are different from your friend’s? Let’s take a look.
Age
You can’t fast forward the clock. But, if you could, it might make a difference on your premiums. Your age could be what’s affecting the cost of your car insurance premiums. The younger you are, the more you will most likely have to pay.
Car insurance companies analyze their claims data to determine which age group has the most accidents and files the most claims—costing them the most money. People in their 20s will likely cost insurers more money than people in their 40s. So, people in their 40s would pay less for their premiums than those darn 20 somethings.
Occupation
Even your job might affect the cost of your car insurance premium.
A salesperson, for example, may drive around a lot for work putting themselves at a higher risk of having an accident and needing to file a claim. An office manager or a lawyer may not be driving as much, so they would be at a lower risk. Therefore, the high-risk salesman is going to have to pay more for premiums than the low-risk lawyer.
Driving experience
Another factor affecting your premiums could be how much experience you have behind the wheel. Generally, drivers in Singapore who have more driving experience will pay less for premiums than someone who hasn’t been driving as long.
It is perceived that the longer you have been driving, the less likely you are to get into a collision. More years equals lower premiums. If you are someone with less driving experience, stay safe, and with a little time at least you know your premiums may lower.
Car make and model
Whether you drive a luxury vehicle or an old car that just doesn’t quit—either one could give you higher premiums. Luxury vehicles have more expensive parts that will cost more to insure (think sunroof, hybrid and your fancy rims).
New cars also tend to cost more to insure. But, ironically once your car gets over about ten years old, your premiums will start to go up as it gets older and the cost of replacing those parts goes up as well.
Your engine capacity may also affect your premium. The higher the capacity, the higher the premium. Some insurance companies won’t even accept cars with a turbo engine.
Claim history
If you have had the unfortunate duty of filing a claim in the past three years, generally speaking, you will be given a higher premium. This may seem unfair. Maybe the accident wasn’t even your fault.
Insurers use statistics to analyze and infer how safe of a driver you are by your recent claims history. According to those statistics, people who have recently filed a claim are generally more likely to have to file a claim again while under their policy. Unfortunately, even if you are a safe driver, you are now stuck in a group of people who generally are not. The group of people you’re stuck with are high risk which now makes you high risk. And, you’ll have to pay for it.
There is a lot that can affect your car insurance premiums. Having a good understanding of those things can help you know what to do to save money.
Vouch is dedicated to offering reliable coverage from our insurance partners that gives you up to 15% of your premium back if you don't make a claim. Now, that's fair!