How Does Car Insurance Work in Singapore?

Car insurance is necessary for Singapore. People are not allowed to drive the car if they do not have this insurance. People can either go to the insurance office to purchase the policy or they can purchase car insurance online. There are many benefits to purchasing insurance online as there are many offers and discounts, which people may not get in the office. Many factors need to be checked to lower down the premium. This article will discuss the factors of it.

Number of Claims

Many companies ask the applicant whether they have made any claims in the past three years. If it has been done; the company may ask for high premium charges. This is because companies check the ways of driving of the applicant. If a person has filed a claim, he may do so in the future also. The premium charges are high because of the coverage that is to be given to the applicant.

Experience of Driving

Car insurance online depends upon the driving experience of the driver. If the experience is more, the charges of the premium will be less. This is so because such drivers drive safely and cause less or no accidents. Drivers having five or more years of experience are considered as safe drivers. This can lead to a lowering of premiums in large amount. There are various ways in which companies ask for the driving experience. Some ask for the date when a driver has received his driving license and some directly ask about the years of driving experience. Even if the premium is high for drivers having less experience, with time, the premium becomes lower.

No Claims Discount

Applicants get no claims discount if they are safe drivers and have not made any claims recently. The discount is given to them as they are safe drivers and do not indulge in accidents frequently. This discount helps the applicants to lower down their premiums. People need to search for those companies that provide this discount.


This is another factor that affects the premium. Studies have been conducted and it has been estimated that drivers who are in their 20s have to pay a high rate of premiums. Drivers who are in their 40s have to pay the least premium. The estimation has to be made to know which age group causes more accidents and demand more claims. Such drivers are costly for insurance companies.


People think that females cannot drive safely. But this is not the case. Studies have shown that female drivers drive more safely in comparison to their male counterparts. This is the reason that charges of premiums are less for females than for males. Studies have shown that men are more prone to accidents than women. Besides the gender, marital status of the driver also matters. If the driver is married, he will drive more safely as he has the responsibility of his family. Unmarried persons are slightly irresponsible and may drive the car at a fast speed causing accidents.

Know Your Car

The cost of insurance depends upon the type of car furbish insurance is being purchased. There are many other aspects of the car, which is checked by a company before giving insurance. These aspects are discussed here.

Type of Car

The companies check whether the car is a luxury car, an SUV, a hatchback, or a sedan. Luxurious and expensive cars have many expensive parts hence the premium is high, as those parts may have to be replaced due to accident or other damage. Comparatively hatchbacks and sedans are not much expensive so the premium is low.

Engine Capacity

Another thing that the companies check is the capacity of the engine. If the engine is of high capacity, the premium will be high. Such engines are usually found inexpensive cars and SUVs.

Age of The Car

Companies also check the age of the car. The details that they want are the registration date and manufacturing date. People who own a new car have to pay more premiums in comparison to the older ones. The age factor also depends on the type of company from where the insurance is being purchased.


Car insurance also depends on the occupation of the applicant. Calculation of premium according to occupation differs from company to company. Companies also charge more premiums for those who have outdoor jobs or have to travel a lot.

Frequency of car usage

Insurance companies like HLAS also check the frequency of using cars. Some people drive two to three times a month while some drive frequently especially if they have a traveling job. If the frequency is high, the premium charged will also be very high.

Wrapping Up

These are the factors, which people need to keep into account while purchasing car insurance online. Insurance companies may also ask for many other factors and the applicant has to provide the details.