Buying your first motorcycle is an awesome experience. But what about the maintenance costs and other costs associated with owning a motorbike?
If you are planning to buy a motorcycle or have just purchased one, it is extremely important to keep in mind that motor insurance is mandatory in Singapore. Even so, buying motorcycle insurance in Singapore can be a tricky undertaking. There are so many different plans and insurers in the market, which makes it daunting to pick a policy that blends the best coverage with reasonable prices and from a reputable provider.
To ensure you get a motor insurance policy that provides the best coverage for your needs, you will need to compare offers from different providers and see which suits you best. In this post, you will find things to look for when buying motorbike insurance in Singapore to help you make an informed decision.
Here are things to consider when buying motor insurance:
1. Desired Coverage
In Singapore, there are three distinct types of motor insurance that you can buy: Third Party Only (TPO), Third Party, Fire & Theft (TPFT), and Comprehensive. TPO provides the most basic coverage; TPFT is a middle-tier plan covering your motorcycle against third party, theft, and fire-related accidents, whereas comprehensive covers you and your motorcycle against just about any imaginable risks that can be insured.
While TPO is affordable and offers the basic coverage you need to take your motorcycle on the road, a comprehensive plan, on the other hand, shields you from most dangers. The best coverage will immensely depend on your budget, how you intend to use the bike, and personal preferences.
2. No-Claim Discount (NCD)
Accidents are practically inevitable when on the road. However, if you manage to have a scotch-free driving record, you could get a discount on your premiums.
No-Claim Discount (NCD) is a discount awarded to safer drivers – motorcyclists and drivers who do not make any claim on an existing insurance policy. As such, safe riding could help you save more on premiums over the years. Some insurers reward safer motorcyclists with up to NCD30.
Otherwise known as policy excess, a deductible is the amount of money you have to pay first before claiming. It is usually set in place to ensure you ride carefully and do not make unnecessary claims.
When purchasing a motor insurance policy, it is imperative to compare what different insurers require you to pay, so you can pick an insurer allowing you to pay a reasonable amount. If you can drive carefully and safely, you may want to get into a contract with an insurer that requires you to pay a higher excess so you can save on premiums.
Your insurer can also offer to waive the deductible and spread the risk over premiums.
There is no shortcut to getting the best motor insurance policy. If you are in the Singapore market for motor insurance, you need to do your research then shop around to find coverage that best suits you best. Hopefully, you will find this post helpful in your search for tips for buying motor insurance.