Guide for Motor Insurance

Video Transcript

*Please understand that all the content mentioned in the above video are based sololy on the current market status and our personal experience in this field of service. For further enquiries regarding your purchase of a Motor Insurance, please approach a professional financial adviser or contact us for more details. Thank you!

Intro

Hi, welcome to Raffles Provident where YOUR interest is OUR utmost priority. Today, we are here to share with you some tips in selecting your car insurance. There are a few important points for everyone to take note of when it comes to choosing the right insurance for your vehicle. If you are new to this topic, I would recommend you to listen closely.

What is car insurance?

What is car insurance? Car insurance protects you against medical and liability costs when you get into a car accident. There are three main types of car insurance policies in the market:

  • First, we have the most basic policy, called the Third party coverage. It covers only the costs associated with the damages to property and injuries to people, that are caused by the policyholder.
  • Second, we got the Third-Party, Fire & Theft coverage which expands on the basic coverage by providing additional protection from losses due to accidental fires and theft. 
  • Finally, we have the Comprehensive coverage which covers not only third party liabilities and fire/theft, but also covers losses and damages done to the policyholder, as well as their vehicle, passengers and belongings. This is the type of car insurance most commonly-bought in Singapore.

Why do you need to buy car insurance?

Some of you might wonder why it is necessary to purchase car insurance in Singapore. Similar to many other countries, driving without car insurance is illegal in Singapore, as stated by the motor vehicles act. Even without this law, having car insurance is useful in providing financial protection in the event that your vehicle is being vandalised, damaged or stolen. It can also cover for damages and injuries on other drivers, passengers, pedestrians and their properties. We understand how accidents are very unpredictable in nature. With the right insurance coverage, you can resolve yourself from financial burden if you happen to be involved in one of these events.

There are some important terms in an insurance policy that you should pay attention to, not only car insurance. 

  • Firstly, it is the coverage of your insurance plan. Coverage refers to the risks and liabilities that are covered for an individual or entity by insurance services. The coverages define the events in which you are able to make a claim, as well as the associated terms and conditions.
  • Next, is your premium. Premium is the amount of money you pay for the insurance monthly, quarterly or yearly. The amount of premium paid depends on the number of coverages you want. The more the number of  coverages, the higher the premium for the policy. Therefore, it is wise to clarify the premiums involved before purchasing your insurance. 
  • Another important term is the deductibles involved. Deductible is the reduction in the amount of money you can possibly claim from an insured event. They are mainly used to deter the potential large number of claims that a policyholder can be expected to bear the cost of.

How much does it cost?

In addition to your coverage, there are other factors that also affect the cost you pay for insurance. These factors include your age, the type of car you drive and your occupation.  While there are insurance policies that seem to have very low premiums, they might come with higher deductibles or a lower level of coverage. Please be careful when comparing between insurance policies.

How do you get your car insurance?

The most common approach in getting insurance is through an insurance agent. An insurance agent will provide you with advice on choosing the right insurance service. At Raffles Provident, you can find a variety of plans that could suit your insurance needs at an affordable rate. 

Outro

Thank you for watching. Stay tuned for more content, and please don’t forget to follow us on these social media platforms. If you have further enquiries regarding insurance services, you can visit our website or contact our service line.  

This video is proudly brought to you by Raffles Provident where YOUR interest is ALSO OUR interest. Once again, thank you for watching!

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