While expensive is a relative term, car insurance is a cost many vehicle owners consider globally, especially people with a fixed income. The average cost of car insurance in Singapore is $800 – $1,200 annually. Some drivers pay higher premiums for various reasons.
Car insurance is expensive for various reasons.
- The driver’s age.
- Multiple drivers in one policy.
- Your claims history.
- Your location.
- The type of car.
- The insurance company.
- Changes in the cost of third-party insurance.
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The Driver’s Age
Most insurance companies consider the age of the driver when calculating car insurance Singapore. Younger drivers tend to take higher risks and they drive much more than older drivers.
Older drivers also tend to be more experienced. However, insurance companies will also
Young drivers are more likely to violate traffic rules. Unfortunately, this risk comes at a cost for insurers, so they calculate a higher premium to match the risk level.
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Multiple Drivers In One Policy
The car insurance quote for vehicles with multiple drivers in one policy is usually more expensive. This is primarily because the vehicle carries a greater risk. As long as the insurer bears a high risk with the insured vehicle, the cost is transferred to the car owner.
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Your Claims History
The more insurance claims you make, the higher your comprehensive car insurance premiums. Some vehicle owners see an increase in their premium rates every year based on how often they make claims.
So, having comprehensive car insurance is not reason enough to handle your car in ways that will force you to request claims multiple times a year. Should this happen, the insurer will consider you a high-risk client, so your premium will be raised when you renew the car insurance.
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Your Location
Car insurance in big cities tends to cost higher because of the high population. These areas tend to have higher traffic incidents and theft. Areas hit by natural disasters also attract high car insurance premiums. Smaller towns carry minimal risks, so you’ll find these areas have cheap car insurance.
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The Type Of Car
Insurance companies often consider the value of the vehicle when calculating the premium. Newer models and luxury cars attract a higher car insurance quote.
If the insurer believes the car brand and model will cost more to repair or replace, the car insurance will naturally be expensive. Vehicles with advanced tech features and functionality also cost more in car insurance.
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The Insurance Company
Some insurance companies have a reputation for expensive car insurance. This could be because they target customers willing to pay more for car insurance. Their coverage may also focus on providing car insurance for high-end vehicles.
Some insurance companies, especially small establishments, may not have the resources to manage some vehicles. So, they choose to focus on cheap car insurance. However, if you are looking for affordable yet comprehensive car insurance plans, the insurance provider HL Assurance is the choice for you. Purchase your plans easily online and fuss-free.
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Changes In The Cost Of Third-Party Insurance
Third-party insurance is included in all car insurance policies. It is the car insurance policy that is mandated by law for all vehicles. You have a choice when it comes to comprehensive car insurance, but all cars on the road should have third-party coverage. If third-party insurance rates are increased, car insurance will naturally go up.
These are some of the factors responsible for expensive car insurance. If you are concerned about the affordability of car insurance, you can find ways to reduce the costs. For example, you can get a cheaper vehicle, and avoid becoming a high-risk client.
