In most cases, having insurance is one of the best things you can do to protect yourself and other people from any problems in the future. Regardless of the vehicle type you decide to get; there are several reasons why having auto insurance is the best thing you can do.
On the following page, we’ll give you a full overview of a car insurance policy and why you should have one to get coverage for different things.
What Is Auto Insurance?
Auto insurance (or auto insurance policy) covers different vehicle types, including cars, trucks, or even motorcycles. Any vehicle that falls under the “road vehicle” category can apply for an auto policy.
This kind of insurance policy aims to provide the policyholder financial protection against any damage caused to the driver, the passengers, or any other third party that arises after a vehicle collision. Insurance policies also cover liability that may arise from an incident.
Insurance policies can also help you get coverage in cases of theft. Generally speaking, these insurance types can protect you in these three primary areas:
- Property Damage or Theft
- Liability for Property Damage
- Medical Expenses According to Singapore law, all motor vehicles must have at least the most basic insurance coverage. In essence, the insurance should cover at least third-party liability for physical damages or death.
Auto insurance in Singapore can range from $700 to $1,000, depending on the vehicle, your age, your gender, your marital status, your occupation, your claims history, and many other things. Insurance providers calculate your insurance premium based on your potential risk as a driver.
Why Do You Need It?
While having insurance in Singapore is mandatory, there are also many other reasons why having proper insurance for your vehicle is the best thing you can do. Here’s an overview of all the reasons you may want to consider when choosing the insurance:
- It’s Required by Law: As mentioned before, having insurance in Singapore is mandatory, although you have no obligation to choose a particular type of insurance.
- You Will Be Able to Compensate Someone Else for Damages: Accidents are unpredictable, and if you were at fault for one of them, an insurance policy would help you ease the financial impact the accident will have on you.
- You Can Get Compensation for an Accident: On the other hand, if someone else caused an accident and you got hurt, your insurance policy will allow you to cover some (or all) of the expenses related to your car or physical damages.
- You Can Get Your Vehicle Fixed: In some cases, your vehicle will get excessive damage. If you have the right insurance, you can get the vehicle to an approved workshop and fix it as soon as possible.
- Protect Your Passengers and Assets: Not only do you protect yourself against damage, but you also protect people with you in the event of an accident. Moreover, because insurance providers cover some of the damages caused, your investments are protected from being spent.
Choosing the Right Insurance Type
There are three main types of insurance, and you may choose the option that best fits your needs. Here’s an overview of what each type of insurance can offer you:
- Third-Party Only Auto Insurance: It covers damage caused to another person or their property. However, this insurance doesn’t cover damages caused to your vehicle.
- Third-Party, Fire & Theft Auto Insurance: Aside from everything the TPO insurance offers, this one also offers coverage for theft and fire damage to your car. It doesn’t cover any other damage type.
- Comprehensive Auto Insurance: It covers most types of damage caused to your vehicle or someone else’s. This is the best insurance type you can get, but it tends to be the most expensive option.
Working with MoneySmart Financial
There are many considerations around getting the right insurance policy. However, it may be hard if you do it on your own, which is why getting help from professionals is recommended.
Our team at MoneySmart will help you get the best car insurance in Singapore according to your vehicle and personal needs. Moreover, we’ll walk you through the entire process of getting insurance so that you know everything you must keep in mind.
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