Motor Insurance - A guide from a workshop perspective

[This is not a sponsored post for any insurance]

Every car on the road should be protected by insurance to be roadworthy. We usually do not think about how protected are we when we're travelling on the road. Only until we encounter an incident do we start to think... "What kind of insurance policy did I buy and what am I covered from this incident?" Honest thoughts? We should pay special attention whenever we purchase our car insurance, so that we will not panic when we need to review it.

When buying car insurance in Singapore, focus on getting the right coverage type, sensible excess, and good value-adds (like NCD protection and workshops) rather than just the lowest premium possible.

1. Coverage type

There are 3 typical coverage that most insurance provide - Third-Party Only (TPO), Third-Party, Fire & Theft (TPFT) and Comprehensive.

• Third-Party Only is the minimum insurance coverage under Singapore law. This covers third party property damage, injury and legal costs and expenses for others (not yours).

  
  

• TPFT (Third-Party, Fire & Theft) In addition to TPO, this coverage adds protection if your car is stolen or damaged by fire, but still excludes accidental damage to your car.

  
  

• Comprehensive covers third-party liability plus accidental damage to your car, fire, theft, floods and often some medical/personal accident benefits. Under Comprehensive, there is a clause on "any workshop" or "authorised workshop".

  For accidental damage to your car caused by your own negligence and amounting to a hefty repair, you may choose to claim the repairs under "Own Damage" under your car's insurance. Typically it will be under "authorised workshop", which means you can only send back to your insurer's approved workshops unless the coverage includes "any workshop" where any workshop of your preference can take up the claim case. For that matter, it is slightly more expensive for "Comprehensive - any workshop" coverage but brings a peace of mind and flexibility to your trusted workshop to handle the repairs.

Coverage	Own Damage Claim	Third Party Claim (against others)
TPO	X	Any workshop that provide claim services
TPFT	X	Any workshop that provide claim services
Comprehensive (authorised workshop)	Only authorised workshop	Any workshop that provide claim services
Comprehensive (any workshop)	Any workshop that provide claim services	Any workshop that provide claim services

In addition, for those who love to drive into Malaysia and even Thailand, you may check if your insurance has validity in your country of interest.

2. Excess (deductible) and claim conditions

Who will be driving the car most of the time? Are they young or inexperienced drivers under the definition by the insurer? These are some of the things to think about when it comes to the Excess payable. Excess is basically the amount that you will have to pay in the event a claim is made on your insurance (Third-party or Own Damage). A higher excess usually lowers the premium, but make sure it is an amount you can realistically afford if an accident happens.

When will Excess be paid? It depends on the type of claim you would like to do.

Type of Claim	Against	Private Car	Private Hire Car
Third Party	Other Insurer	No Excess	1 & 2
Own Damage (Comprehensive only)	Own Insurer	1	1
Windscreen Claim (Comprehesive only)	Own Insurer	1	1

1 - Own Damage Excess, 2 - Third Party Excess. In general but not exhaustive and representing all insurance policies. Do you proper check with your agent or hiree.

Below are some examples of excess in your Certificate of Insurance.

Eg 1 - Excess with additional clause

Eg 2 - Excess with workshop preference stated

3. No Claim Discount (NCD) and NCD protection

Usually when no claims against the car has been made over a period of time, No Claim Discount (NCD) is rewarded to drivers for good and consistent driving. The amount of NCD given increases 10% every year until a maximum of 50% off your premium, and it stays with you, the owner of the car. If a claim is being made against your insurance, the insurance typically reduces your NCD by 30% (differ by insurer). It will take around 3 year no claim period to recover your NCD back, so drive safely! Another thing that affects NCD would be late or non-reporting of accidents. The insurer has the right to remove your NCD if accidents are not reported within 24 hours, or the next working day.

So all accidents, big or small needs to be reported, even when no claim is intended to be made. Unless all parties intend to private settle.

Consider paying extra for NCD Protector once you reach a high NCD (e.g. 50%), so that one at-fault claim does not drastically reduce your discount, though multiple claims can still drop it. However, do note that it does not protect your premium from increasing after a claim has been made against your insurance.

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Choosing the right car insurance in Singapore is about balancing coverage, cost, and peace of mind. Prioritise comprehensive protection with any workshops to get flexibility, affordable excess, and NCD Protector once you've built a solid discount. Spend a bit more attention on understanding your insurance coverage, and reduce the amount of panic when the need to review your Insurance arises.

Finding a trusted workshop?

We are here at Ngai Hong Auto Services! We will advice you for your case on whether pursuing a motor insurance claim (either Own Damage or Third Party) would be better. We handle insurance claims for our customers from start to finish. Curious on the process of how a motor insurance claim go?

Find out more here or speak to our customer representative!

For more information on what to take note of during an accident, click here!