Standard Excess refers to the amount of money you are required to pay (eg. first $600) before the car insurer pays (eg. from $601 onwards) when you claim for accidental damage. Some car insurers offer the option to increase your excess to reduce your premium. This excess may double in amount. The motivation for insurers to offer this feature is based on the assumption that with a higher excess, a driver is likely to be more conscientious when driving on the road. The likelihood for such drivers to make a claim is lower.
Some insurers will cover your standard excess while your car is being repaired at one of their authorised workshops. Under "waiver of excess", sub-section “own damage”, you are able to check if an insurance plan offers this benefit.
Please check with your car insurer as the procedure varies with each car insurer. The common procedure would involve these following steps:
Inform your car insurer in writing that you would like to cancel the policy.
Enclose your original auto certificate of insurance, a photocopy of your sales agreement/de-registration letter from LTA and a letter from you, stating that you would like to terminate the policy.
The termination is usually effective from the date the car insurer receives your termination request and confirms that all necessary documentations are in order.
Ideally 1 – 2 months before your car insurance expires. This will give you enough time to renew your road tax and car inspection should you need one. It would also be useful to compare car insurance plans on GoBear to ensure that you have the right car insurance plan. Insurance companies often update their product offerings that may be of interest to you and you could benefit from some savings from these new products.
The profiles of a driver forms the main determinant in accessing premium levels. Here are some questions that are often asked:
Have you made any claims? (up to 3 years ago)
Has your vehicle been modified?
Who will be driving the vehicle?
How long have you been driving?
When GoBear calculates your premium we assume that you didn’t make any claims and your vehicle is not modified. If this is the case, please expect actual premiums to be higher.
Most insurance companies have a “risk factor rating system” when setting your premium. It is like a score card where certain factors have higher weightage than others. Some factors are:
Car make, model and age of vehicle
Car engine capacity
Age, gender, occupation of drivers (Indoor or outdoor)
Driving experience of drivers
Claim history of drivers
Type of cover
Peak or Off-Peak Car (OPC)
No Claim Discount (NCD)
Yes, you are required to do so. If you do not report an accident to your insurer within 24 hours or by the next working day and/or do not provide your car to the insurer for inspection in accordance with the terms of the insurer, the insurer may reduce your No Claim Discount upon renewal of your policy. And no NCD protector can cover that.
This is someone who is below a certain age (determine by the insurance company) and/or has less than 2 years of driving experience. Young and inexperience drivers normally pay an additional excess on top of the standard excess (this varies from insurance companies) in the event of an accident claim.
Find out the different Young and Inexperience Driver excess across various insurance companies by using our compare function!
NCD stands for No-Claim Discount. This is a discount offered by car insurers for those car owners who have not made any claims within a year or more. The longer the car owners do not make any claims, the better the discount they may be eligible for. The No-Claim Discount or NCD is meant to reduce the premium that car owners will have to pay the following year with regards to their car insurance plan. This way, the insurers will be able to recognize those car owners who have been pretty careful on the roads. The table as shown below illustrates more about how the car insurers out there determine the NCD.
PERIOD OF INSURANCE WITH NO CLAIM -- NCD
1 Year -- 10%
2 Years -- 20%
3 Years -- 30%
4 Years -- 40%
5 years or longer -- 50%
Every year, if no claim made against your car insurance, you will be entitled 10% premium discount (accumulated up to a maximum of 50%) for your car insurance. This discount will take effect on your next policy year. If you are a named driver on somebody else policy you will not receive a NCD discount.
No. Your NCD relates only to you. It can only be transferred when you switch vehicles, eg. When you change from your old vehicle to your new purchase vehicle, assuming you get your new car within a certain time period.
If you have a 50% NCD (ie you haven’t had a claim in five years), you could explore the option some insurers offer to protect against the loss of the discount. Certain insurer even provide a NCD protector with 30% NCD. This could come with an incremental premium but this means you can make one claim during the year, and still have your NCD fully protected. Check if your insurer has this benefit on GoBear.
This is the person who drives the vehicle most often and earns a NCD.
Named driver are additional drivers you declare on your policy who frequently drive your vehicle.
Authorized driver is anyone you give permission to drive your vehicle but who is not declare in your car insurance. A named driver shares the same excess as you whereas an authorised driver receives higher excess. This though could vary from insurer to insurer.
Excess (also called a ‘deductible’) is the money you pay out of your own pocket before an insurance company covers the rest of a claim. How much you pay depends on the policy and the company. Usually, though, car insurance deductibles are between $0 and $1,500. Keep in mind that deductibles and premiums are related. A high deductible means a low premium. Also, a low deductible means a high premium. To put it another way, a high deductible can save you money every month. You’ll have a big bill to pay, though, if you file a claim.
Waiver of Excess
Some insurers will pay your standard excess when your car is being repaired at one of their authorized workshops. You can check if the Insurer has this benefit under the chapter “own damage” under the name “waiver of excess”.
This offers the widest coverage in terms of repair or replacement of your vehicle if it gets damaged or lost as a result of accident, vandalism, theft or weather-related damage. It also covers accidental loss or damage to your vehicle, and most of the time all its accessories and spare parts and lastly It also covers liability claims from third parties. A comprehensive cover is mandatory when you finance your car if you are financing your car.
Third Party, Fire and Theft Cover
This covers injury and damage caused by your vehicle to someone else’s vehicle or property. It also covers your vehicle if it’s stolen or damaged by fire.
Third Party Cover
This covers liability from third parties for damage and injury to their vehicle or property caused by your vehicle. Your own damage when you are at fault due to an accident is not covered.
This is the amount you pay to an insurer so it will provide coverage and pay claims.
Insurers normally offer 3 main types of motor insurance policies.
Comprehensive cover - This offers the widest coverage in terms of repair or replacement of your vehicle if it gets damaged or lost as a result of accident, vandalism, theft or weather-related damage. It also covers accidental loss or damage to your car, all its accessories and spare parts as well as liability of claims from third parties for damage to people and property.
Third Party, Fire and Theft Cover - Covers injury and damage caused by your vehicle to someone else’s vehicle or property. It also covers your vehicle if it’s stolen or damaged by fire.
Third Party Cover - Covers liability from third parties for damage and injury to their vehicle or property caused by your vehicle. Your own damage when you are at fault due to an accident is not covered.