Online Auto Insurance and Understanding Terms

Whether you are getting your car insurance Singapore from a trusted insurance agent or from online auto insurance, it is important that you understand the terms that are commonly associated with the industry. There are many benefits you can get by doing so, but they can be sum up to one thing: you can make better decisions when it comes to your auto insurance Singapore.

Here are some of the terms you have to remember:

Motor Premiums
When you are getting motor insurance quotes, you would be interested to know how much your premiums are. These refer to the amount that the insurance company will be asking to pay you for the insurance policy you have chosen, depending on a number of risk factors. These include your age, the model and make of your vehicle, occupation, sex, and even driving history.

Deductible
A deductible is also referred to as an excess amount. This refers to the amount of money you have to bear against your claim. This will not be covered by your insurance company. Thus, if you have $1,500 insurance policy and your deductible is $400, it means that you have to pay for the latter.

No Claim Discount
This also comes in different names. These are no claim entitlement and no claim bonus. This is an incentive given by insurance companies to insurers who have not made any claim from their insurance policy within a particular year. This is expressed in percentages, though such percentage will differ from one firm to the other. The more years of unclaimed policies, the higher the percentage will be.

Repair Options
As the name suggests, it refers to the insurance company’s benefit to the insurers where they can avail of repairs at a lowered price. However, the policy can be very restrictive. When you are doing auto insurance comparison, you may want to know who can fix your car and how much the discount will be for the service.

Courtesy Car
This is sometimes referred as loss-of-use benefit or replacement car. Should insured’s vehicle is damaged and under repair, some insurers do provide courtesy car benefit in their car insurance policy. Some even guarantee availability within hours with door step delivery; plus up to a certain numbers of days of FREE usage. If you depend on your vehicle for daily use, such as to get to and from work or to do your job, then look out for courtesy car benefit in your cover.