5 things to note when buying car insurance

Get smart about your motor insurance policy.

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Get smart about your motor insurance policy.

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For many people, buying insurance is a mind-boggling affair.
A recent survey of 500 motorists by Directasia Insurance found that 32 percent of female drivers rarely understand the terms and conditions of their insurance policy. Yet they proceed to buy, in hopes that they wouldn’t have to make a claim.

What’s more alarming: Only 21 percent read the terms and conditions fully, with a meagre 16 percent claiming to understand their policy’s fine print. That means a majority of vehicle owners are clueless about their motor insurance policy. Yikes!

We spoke to experts from Directasia Insurance to get advice on what to look out for when buying car insurance.

1.Look for a plan built around your needs
As every driver has different lifestyles and preferences, you’ll want car insurance that can be customised. Ask yourself these questions:
●Do I already have a favourite, trusted garage?
●Do I want to include 24-hour roadside assistance?
●How can I safeguard my 50 per cent no-claim discount?
●Do I frequently drive outside of Singapore?
●Do I want compensation for loss of use when my vehicle is being repaired?
●Am I the only one driving my car, or will it be shared with my family?

2.Be clear about what your policy covers.
The quicker you can resolve a claim, the faster you can get back on the road. So, always ask questions, and check with your insurance agent to make sure that you understand the terms before agreeing to buy the policy.

3.Understand what your policy does not cover.
Don’t assume that your policy is all-encompassing. Read the document to find out what the insurance excludes. For example, Directasia does not cover you for loss or damage caused by a failure to lock or secure your car.

4.The small things matter.
If you’re planning to modify or have modified your vehicle, or have car accessories or spare parts you wish to get insured for, check with the insurer to find out if such modifications or items will be covered. Note that modifications would need to be in compliance with the Land Transport Authority’s guidelines before your vehicle can be insured.

5.Contact your insurer directly for clarification.
You know what you need best. If you ever feel confused by any terms and conditions, it’s always best to check back with your insurer.