Car insurance payment options in Singapore
As you’re most likely aware, it is illegal to drive without the minimum level of car insurance coverage in Singapore. All drivers must therefore obtain motor insurance that at least includes third party coverage, which protects the insured against bodily injury and death to third parties in an accident. The legal necessity to secure coverage has borne with it many questions from drivers concerning the various stages of obtaining, managing, and paying for motor insurance, chief among them being: “What are the most common car insurance payment options?”
In our goal of bringing transparency to the world of motor insurance, this article provides an overview of the most common car insurance payment methods and intervals in Singapore.
Common car insurance payment options
While not exhaustive, the list below addresses three of the most common car insurance payment methods. Please bear in mind here that the payment methods available will differ between insurers; some providers will offer a greater variety of options than others.
We typically recommend paying for car insurance via bank transfer. This can typically be done online, via an ATM, the telephone, or in-person at the branch. This method is fast and easy; often, bank transfers will allow you to forgo transaction fees and save money on your premium.
Paying via check is also a popular option for some car insurance policyholders. When using this payment method, it’s important to pay particular attention to the following:
- Please verify with your insurer/broker that you’ve indicated the right payee name on the check
- You will typically need to include your policy number and policyholder name on the back of the check
- In order for a deposited check to be valid, it must be verified and approved
Credit card payment
Credit card payments can also be made via the insurer’s website, by calling the provider’s customer service number, etc. This car insurance payment method can be beneficial for a number of reasons. For example, it can be less time consuming than paying via check, and you can acquire more “reward points” and/or benefit from various incentives offered by your credit card company. There can be downsides, though – e.g. late credit card payment charges.
Car insurance payment intervals
Typically, we recommend paying premiums annually. There are a number of advantages associated with this payment schedule, for example:
- You can rest assured knowing you have already paid your premiums in full, and won’t have to worry about missing payments for the rest of the year
- You can avoid potential extra expenses (e.g. processing/installment charges from paying more frequently)
- You may be eligible for certain discounts when paying your premium in full
However, if your budget does not permit paying a relatively large sum all in one go, some insurers may also have the option of choosing another payment schedule (paying semi-annually, quarterly, or monthly, for example).
Finally, it’s worth noting that car insurance premiums are one of the most important payments you will need to make on time. Failure to pay on time (or at all) may result in hefty late fees, or even cause your policy to lapse.
What determines my car insurance premium?
Another key piece of information we would like to divulge in today’s article is the key factors determining what you will need to pay for car insurance. While there is no set calculation used by all insurers, there are a number of common factors that insurers will consider when quoting premiums. These include:
- The make of your car
- Your age
- Your driving history
- The mileage of your car
- Whether or not you have a No Claims Discount (NCD)
- The type of coverage you want (e.g. third party only, third party fire & theft, or comprehensive)
- And more
Get in touch with Kwiksure Singapore today
To learn more about the most optimal car insurance payment method for your driving needs and budget, as well as the motor insurance plans that suit you best, be sure to get in touch with Kwiksure Singapore today. As a leading broker, we’re committed to giving you free car insurance quotes, impartial advice, and will match you with the best coverage in Singapore. Not only that, but our team are also on hand to provide assistance should you encounter any premium payment difficulties.