Should You Make a Claim on Your Car insurance?
In Singapore,
whether you like it or not you must buy car insurance to be driving your car on the road. It is not an unreasonable
request by the government to ask for in the event of an emergency or accident
which weather in Singapore is more prone to cause. Having an insurance provider
to assist you in situations that are unexpected can always help to relieve some
stress. It is just a question of, should
you make a claim on your car insurance or not?
There are pros and cons to making a claim. As a customer, you may have a lot of hesitation not knowing what making a car insurance claim can entail. Firstly, have you heard of the term No Claims Discount (NCD)? This benefit granted to all car insurance holders in Singapore is an entitlement given to you if no claim has been made under your policy for more than 1 year. For every year you do not have any claims on record, you are entitled to 10% off the premium you have to pay in the next year. This acts as a recognition from the insurer to reward you for careful driving. Take note that, NCD is attached to the driver’s name, so changing cars will still entitle you to the discount.
Your entitlement to No Claims Discount is an important factor to consider when deciding whether to make a car insurance claim. The thought process we recommend you to go through is; If the accident involved you and another driver, were you at fault? Your entitlement to the No Claims discount will only be affected if you are at fault. Have you consulted an authorised car workshop in Singapore? Note that insurance providers will only take in claims that are made with authorised car workshops. How much is the cost of your damage repair compared to your excess? If your cost of car repair does not reach your excess, you may want to forfeit your claim to remain applicable for your NCD. In some circumstances, you may want to make a claim if the cost of repairs reach an amount that makes it worthwhile to forfeit your NCD in the long run.
Making a claim may also result in an increase in premiums consequently. If ever you decide to change insurance providers, you will be charged with high premiums depending on your claim history. When you buy insurance to protect yourself, insurance companies also strategize their products to protect themselves from having to pay out large sums for irresponsible driving. Therefore, keeping a clean claim record is important for your long term benefit however, being a safe and responsible driver comes before all else.
Now that you know what consequences may play out, the last important tip to take note is, when should you make a claim on your car insurance? Most insurance companies will only accept claims immediately after an accident, regardless of the degree of damage. Therefore, reporting your claim within 24 hours of an accident is compulsory.
