How to Snag the Cheapest Car Insurance Without Breaking the Bank in Singapore
Living in Singapore feels a lot like living on a tightrope—every purchase looks like it’ll cost a small fortune. But guess what? Getting affordable car insurance that actually covers what you need is still doable, if you know how to play the game.
Top 10 Tricks to Score the Best Deal on Car Insurance in the Lion City
- Compare, Compare, Compare – Just like you’d check the price of a pricey mid‑scale coffee, pull up multiple quotes from different insurers. Some offer hidden discounts that you won’t find if you’re only looking at one company.
- Bundle Like a Pro – Think of car insurance as part of a bigger package, such as home or health coverage. Insurers love bundling and will often drop the price if you sign up for more than one plan.
- Keep Your Credit Score in Check – Good credit makes insurers trust that you’ll pay on time. That trust often translates into lower premiums.
- Ask for Optional Extras That Actually Help You – Extra coverage is great, but ask if you really need every add‑on. Dropping an unnecessary rider can save you a decent chunk of change.
- Claim Your Loyalty Points – If you’ve been with the same insurer for years, don’t forget to brag. Loyalty programs can offer bonuses or discounts right off the bat.
- Take Advantage of Auto‑Pay Discounts – Setting up automatic billing can land you a small discount, and it saves you the hassle of remembering every month.
- Opt for a Higher Deductible – If you’re confident you won’t make frequent claims, choosing a higher deductible can slash your monthly cost.
- Supercharge Your Policy with a Safe Driver Bonus – If you’re a safe driver with no accidents, ask for a “no‑claims” or safe‑driving discount.
- Get the Right Coverage Limits – It’s tempting to load up your policy with big limits, but too much coverage could actually inflate your premium. Find the sweet spot that fits your needs.
- Stay Updated on Local Incentives – The Singapore government often offers rebates or incentives for adding Environmentally Friendly vehicles or embracing SAF. Keep an eye on that as it can reduce costs.
So, next time you’re eyeing a price tag that feels like the cost of a small island, remember these tricks. With a little negotiation, a dash of research, and a whole lot of confidence, you’ll drive away with a policy that’s as light on your wallet as it is heavy on protection.
1. No-claim discount gives you lower premiums
Dreaming of a 50% Car‑Insurance Discount? Let’s See the Real Deal
Everyone loves a good deal, especially when it comes to protecting your wheels. If you’re a safe driver, you’ll earn a Non‑Claim Discount (NCD)—a sweet slice of the premium pie that shrinks the cost of your insurance policy. But how much can you actually save, and when does your “no‑claims” streak get paused? Let’s break it down.
Mark Your Calendar: Your NCD Grows Like a Christmas Tree
- 1 year – 10 % off
- 2 years – 20 % off
- 3 years – 30 % off
- 4 years – 40 % off
- 5 years and beyond – 50 % off (the ultimate bargain!)
That means after five years of zero accidents you could slash your monthly bill in half. It’s like a loyalty card for the safe‑driver club.
Drive Straight, Not Already?
Worried your NCD will disappear if you finally hit a pothole or accidentally bump a mailbox? Forget it. Most insurers don’t instantly strip your discount. Instead, your NCD may be reduced on the next renewal, or it might just stay at the level you’ve earned until the policy ends. So, a single bump doesn’t mean an instant loss of the 50 %.
Quick Take‑away
• Keep a clean driving record and your discount climbs its way to the 50 % cap.
• One off‑track incident won’t erase your hard‑earned savings right away.
• Treat your NCD like a good friend—caring is key, but it’s not the end of your privileges.
So rev up your confidence, stay accident‑free, and let the savings roll!
2. A higher excess lowers your premium price
What’s the Deal with Excess (Deductible) in Car Insurance?
Think of excess as the building block for your insurance payment strategy. If you’re willing to shoulder a larger chunk when a claim happens, you’ll enjoy lighter monthly premiums. But don’t forget – if the accident happens, you’ll need to dip into your pocket for that extra amount.
How It Works in Numbers
- Let’s say the excess in your policy is a handsome $2,000.
- If your car needs repairs worth $5,000 in total, you only cover the $2,000 part.
- The insurer will chip in the rest – the remaining $3,000.
- On the flip side, if the repair bill comes in under $2,000, you’ll end up paying the full amount yourself – no insurer assistance.
Choosing the Right Balance
Some drivers swear by a lower excess because it shields them from unexpected cash‑flow drama. Others go for the discount of a higher excess, simply because the peace of mind from cheaper premiums outweighs the occasional out‑of‑pocket expenses.
What Matters Most?
At the end of the day, the real question is: Which option feels cheaper for you? Low premiums spread over the year, or the ability to pay a higher upfront chunk when a claim lands?
Adjusting the Excess
Insurance companies often let you tweak the excess to match your budget and risk tolerance. The key is to pick a figure you’re absolutely comfortable with – you need to be able to pick up that bill if the worst-case scenario knocks on your door.
3. Receive additional discount with Certificate of Merit (COM)
Unlock the COM Discount: It’s Simple, Sweet, and Seriously Worth Checking Out
Hey there, savvy driver! COM (Credit On Motor) can zap a 5 % hit off your No‑Claims Discount (NCD), as long as you’ve kept a clean record for the last three years. The traffic police swing the “ball”—they’ll flag your name on the list, hand you a COM certificate, and you’re good to go.
Why Some Insurers Say “Nope”
Not all providers play by the same book. Insurers like NTUC Income, AIG, DirectAsia, and Aviva have put the COM perk on the “short list” (or the long list, depending on your perspective). So, before you pick up that premium, double‑check whether the company you love accepts the COM discount.
- Big Name Holdouts – Those four major insurers: NTUC Income, AIG, DirectAsia, Aviva don’t currently offer the discount.
- Smaller Players – Some boutique insurers do, and they could save you a few bucks.
How to Make the Most of Your COM
Follow these quick steps to ensure you’re getting the discount without any headaches:
- Check Your Claim History – Three straight years, no claim. If you do, you’re as good as dead for the COM.
- Verify with Your Insurer – Drop them a line or check their website. Ask if they’re on the “COM club.”
- Ask for an Awarding Letter – The traffic police will send you something official. Keep it safe; it’s your cheat sheet.
That’s all—no rocket science, no insurance jargon strikes, only a simple 5 % bonus that could lift a little weight off your monthly payments. Happy driving!
4. The sooner you get your driver’s license, the cheaper your premium
Get That License Early In Life (and Your Wallet Will High‑Fiver You)
Insurance companies love it when you’re a seasoned driver. In fact, if you’ve held your licence for more than four years you won’t see a spike in your excess or premium.
On the flip‑side, a “new‑to‑the-hood” driver is automatically tagged as a young, higher‑risk rider. That tag comes with a heftier price tag. The insurer’s decision board circles a couple of points, and a fresh licence is one of the big ones.
Key Take‑Aways
- Experience beats age: More years behind the wheel mean fewer accidents.
- Four‑Year Rule: Keep a licence for four years and skip the “young driver” price jump.
- Even if you’re a the occasional coaster: Having that licence ready costs you far less than paying extra later.
So, if you want a sweet deal on a new car, take the early licence snitch. Your future self will thank you, and the insurance gods will give you a bonus grin.
5. Going to insurer-authorised workshops keeps premiums low
Why a Green‑Lighted Garage Is Your Wallet’s Best Friend
Picture this: you’ve been cruising along, and life throws a curveball—vroom! You’ve gotten a dent. Now you’ve got two choices: the open‑air garage you fancy or the one stamped officially by your insurer. Spoiler: the green‑lighted spot actually saves you plenty of cash.
Why the Big Deal?
- Insurance Approval—pre‑approved shops mean the paperwork is already in order.
- Lower Repairs—insurers have deals with registered garages to keep costs down.
- Peace of Mind—no surprise fees, because the price is locked in from the start.
When You’re Not Sure Now Who Is Approved
It’s an all-too‑common snag. That fancy auto spa you’d love might not be on your insurer’s list. Instead of panicking, dial up your insurance hotline, ask for the approved shops list, and you’ll be back on the road in no time.
Common Pitfalls to Dodge
Listen up—many people make these simple mistakes:
- Choosing the cheapest shop without checking if it’s approved.
- Getting double‑charged for damage that wasn’t theirs.
- Missing out on insurer credits because the shop isn’t certified.
Take a deep breath, call your insurer, and walk away with a smile.
6. Avoid modifications to pay for lower premiums
Do Your Secret Car Mods Cost You More Than You Think?
Got a few hidden tweaks hidden behind that hood? Think you’re skating past your insurer?
If those gadgets turn out to be more than a cosmetic upgrade, you’ll likely hit a financial wall.
Why the Insurance People Keep Their Fingers on the Pulse of Your Mods
- Low‑risk changes may still increase your premium.
- Even LTA‑approved custom parts usually show up on the insurer’s “extra perks” list.
- Unapproved or unofficial mods? Higher risk, higher cost.
What Happens if You Skip the Disclosures?
Insurance companies can do two things:
- Refuse to cover your damages during an accident or theft.
- Pull the plug on the policy altogether.
Either outcome is a big hole in the wallet, one that’s hard to patch.
Decoding the “Add‑On” List
That list your insurer gives you? It’s everything that can weight your bill:
- Extra camera feed? Yep, more premium.
- ABS no longer free? Check the “add‑on” tag.
- Even that sleek aftermarket brake kit you’re bragging about? It gets added.
How to Keep Your Premium Down Without Giving Up Your Dream
Here’s a quick cheat sheet:
- Always disclose your modifications up front.
- Choose insurance plans that bundle custom upgrades as standard.
- Talk to a specialist who knows which mods get a “green tick” and which scream “extra cost.”
Want to keep your car’s heart pumping without draining your savings?
Get a policy that’s truly custom‑friendly and never compromise on coverage.
And the Bonus
If you’re on a tight budget, you can still keep watchful eyes on your insurance costs:
- Ask for bundled discounts on multiple coverages.
- Look for annual riders that soften the impact of your mods.
- Keep an eye out for unexpected perks like roadside assistance.
Happy driving, and may your wallet stay as full as your garage!
7. Opt-out of personal accident coverage to save more on premiums
The Little Guardian of Your Wallet: Personal Accident (PA) Coverage
You know that tiny section tucked into every car insurance policy that promises you a cash payout if life throws you a curveball (or a dent)? That’s the Personal Accident (PA) coverage—the friendly little safety net that says, “Hey, we’ve got your back if you splatter on the road.”
Do You Really Need Two PA Policies?
- Got a separate PA policy somewhere else in your insurance stack?
It’s like having a duplicate backup of your breakfast sandwich—efficiency, not necessity. - Check with your insurer first: many companies allow you to opt‑out the PA cover in your car policy if you’re already banking on another PA plan.
Why Let Your Car Insurance Play Double Duty?
Keeping both PA policies active can be a bit like carrying an extra pair of sunglasses when you only need one: you’re paying more for the same protection, which can bleed your wallet faster than a leaky faucet.
Next Steps
1. Log into your insurance portal or give the office a ring.
In short, if you’re already reaping PA benefits elsewhere, let that lone policy do the heavy lifting—your insurance package can be leaner, your finances happier, and you’ll have more money for things that truly matter, like a new set of wheels or a future road trip adventure.
8. Refrain from adding named drivers to keep premiums low
Why Adding a Named Driver Might Trigger a Premium Rollercoaster
Think about adding that extra driver to your policy as if you’re tacking on an extra seatbelt—nice, but it’s not free. Especially if the extra ticket belongs to someone who’s still figuring out what “road safety” really means.
Young Drivers = Higher Premiums (No Patent for a Game)
- Age Factor: The younger the driver, the heftier the monthly bill.
- Inexperience: Kids doing what cars are for is a recipe for higher rates.
- Risk Perception: Insurance companies look at the record, not the hope.
Only Add When It’s Totally Worth It
Don’t just slot in a family member because you think in terms of “family inclusion.” Add a named driver only if you really need them covered—like your over-enthusiastic son who thinks every pothole is a personality test.
Otherwise, you’ll end up paying extra for a policy that’s not even looking at their driving style. It’s a classic “you’re paying for someone who’s not driving a truck” scenario.
Quick Takeaway
- Adding a driver spikes premiums—especially if that driver’s still learning the ropes.
- Make a decision only if coverage is truly needed.
- Unnecessary added drivers are a waste of cash.
Want to Dive Deeper?
Curious about other things that sway your quote? Check out what factors affect your car insurance quotes.
9. Opt-out of courtesy car benefits for cheaper premiums
Car Insurance’s Secret Sidekick: The Courtesy Car
Ever find yourself staring at a dented sedan while the workshop paints rabbit ears?
Some insurance companies swoop in with a courtesy car—essentially a rental on standby while your beloved ride gets a makeover. It’s a lifesaver if you need a vehicle every day.
When to Grab the Ride (or Not)
- Love the commute – If you’re a daily commuter, a courtesy car keeps your hustle on track.
- Minimal car use – Prefer the public transit or have a low‑usage lifestyle? You can opt out of this perk.
Opting out can shave a decent chunk off your premium, but check your policy first. Some insurers make it easy, while others might sneak that extra fee in.
Quick Check
- Log into your insurer’s portal.
- Navigate to the “Coverage Options” section.
- Spot the “Courtesy Car” line and toggle it off if you’re not a full‑time driver.
In short: if you’re not a car‑dependent rockstar, knocking out that courtesy car could leave a nicer print on your wallet—and, hey, who doesn’t want more spare minutes to binge‑watch those new shows?
10. Current car insurance promotional codes for cheap deals
Score the Lowest Car Insurance Costs in Singapore – Promo Edition
Stop overpaying on car insurance and say hello to discounts that will make your wallet do a happy dance. Pull up, buckle up, and let’s see how you can snag the best rates without breaking the bank.
DirectAsia
- Complimentary car inspection when you buy any new car insurance policy.
- Extra 10 % off if you insure two or more vehicles.
- Refer a friend program – you and your buddy could win some sweet perks.
Etiqa
- Enjoy interest‑free installment payments when you pay your premium with a Maybank credit card.
FWD
- Refer a friend and receive cash rewards.
- Use promo code FWDVALUE to get 15 % off the Comprehensive Plan.
Aviva
- Save 25 % on all premiums with promo code POSTCB25.
- Get up to 36 % off for MINDEF, MHA & POGIS policyholders.
AIG
- Fly high with the AIG Auto Insurance KrisFlyer Miles promotion.
- Save up to 15 % with the AIG On the Go app.
AXA
- Customisable car insurance with 0 % interest‑free instalment.
Budget Direct
- Refer a friend for a $20 shopping voucher, and your friend gets 5 % off any policy they purchase.
NTUC Income
- Drive safely and get up to 65 % off with the Drivo program.
- Drive more pre‑races and get a 69 % discount on Drivo.
All these perks mean you can find the cheapest and best car insurance in Singapore. Remember, safe driving not only keeps you out of trouble but also keeps your bank account happy.
Drive safe, save big, and let your car insurance work as hard as you do.
