Car insurance is a necessity and a legal requirement in Singapore. If you own a car, you need to buy an insurance coverage policy from a reputable insurance company. Auto insurance helps you recover in case your car is stolen, damaged, vandalized, or involved in an accident, among others. The insurance company may compensate you financially, repair it or purchase a new car for you, depending on the policy and the details of your claim.
Different insurance companies offer policies that cover different aspects of a car. However, most car insurance companies offer the following typical covers: third-part only, third party fire and theft (TPFT), or Comprehensive (COMP).
A third party only covers injury to another person involved in an accident, damage to someone’s property, and the associated legal costs and expenses following your car’s accident.
A third-party fire and theft cover extends the third-party-only cover. The policy offers all areas covered by third-party only and fire and theft of your car.
A Comprehensive insurance cover is an advanced insurance policy that caters for everything covered by third-party only and third-party fire and theft. Additionally, it provides cover if your car:
- Crashes into another vehicle
- Crashes into someone’s property beside a car
- Has non-crash damages
- Is damaged by a natural disaster such as floods which is common in some areas of Singapore
- Windows or windscreen is damaged
Now that you have an idea of what a car insurance cover is and why it is essential, you need to know how to identify the 2022 top car insurance provider in Singapore. You can visit this website https://www.directasia.com/car-insurance/.
1. Check with the Authorities
In Singapore, the insurance industry is regulated by the Monetary Authority of Singapore (MAS). The authority registers authorizes and supervises all companies undertaking insurance and reinsurance business.
The authority publishes a list of all licensed insurance companies in its online Financial Institutions Directory. This directory is the best place to start your search. Identify companies that offer auto insurance and list them down.
2. Search the car Insurance companies online
Most car insurance companies have an online presence with at least a website. However, it may be difficult and time-consuming to search and go through each insurance company’s website.
You can start by visiting auto insurance comparison websites to compare various insurance quotes. Alternatively, you can check online reviews for the 2022 top car insurance providers. Check if the review website is offering objective analysis. A good approach would be to check with government authority reports, market survey companies, and top-rated review websites.
3. Visit their website
After you identify the best 3 or 5 quotes, it’s time to visit their website for a detailed analysis. Try to get a quote from their website and compare what they offer. Some insurance companies publish a downloadable copy of their terms and conditions for each insurance policy. Read them to understand what is offered, the associated costs, and the terms of service.
4. Choose the Best
It is time to make a decision. But how do you decide which is the best car insurance company? You can consider several factors to help choose your preferred insurance company. These factors include but are not limited to:
• Competitive Pricing
Compare companies offering similar covers and choose the one with a competitive price. A competitive price is not necessarily the lowest price. In most cases, a cheap insurance quote may mean less coverage. A cheap quote could mean difficulty getting your claim approved. Be objective in your analysis, and don’t be guided only by the amount of money you will save. Ensure you get value for money.
• Clear Policy Terms
It can be frustrating to lodge an auto insurance claim and be told that your claim is not covered. This scenario often happens when you don’t read the insurance policy or don’t understand it. Some insurance companies use complicated insurance and legal jargon and ambiguous statements to dupe clients into buying their policies. If you have difficulty understanding the policy terms, please consult a professional and independent lawyer specializing in auto insurance.
• Insurance Coverage
Insurance covers are well documented even by the government authorities. However, finer details are left to the insurance companies to decide, such as areas to cover and what amount you can be compensated.
If a cover type insures you against some optional aspects that are irrelevant to you, then there is no need to pay for those options. However, if you live in Singapore, it would make sense to insure your car against floods but not against earthquakes.
• Claim Approval Rates
Choose an insurance company that has high compensation rates. Avoid companies that have bad reviews in honoring claims.
• Financial Condition and Customer Services
Customer service is an indicator of how the car insurance company values its clients. What you see is what you will likely get. If you ask a question and the auto insurance company takes days to answer, they probably take longer to service your claim.
The financial health of the auto insurer is an indicator of the company’s ability to pay claimants. If a company has had an excellent record of paying claims but is currently struggling financially, be cautious when signing the policy.
These are some key factors to consider when looking for the 2022 top car insurance company. If you have difficulty analyzing the available insurance companies, you can consult a licensed and reliable insurance agent or broker.