subject: Understanding Car Insurance Cover [print this page] Did you know that it is illegal for anybody in Singapore to drive a car without car insurance cover? An adequate car insurance cover can help protect your from legal liability arising from third party injuries.
While an insurance policy that covers third party liability will suffice to meet regulatory and legal requirements, most people opt for a wider coverage to help protect them in an event that they get into an accident.
i. Third party coverage - This covers for the legal liability arising from injury to or the death of third parties in an accident. This should also cover for damage to property. This is the minimum coverage that is required by Singapore law, and this excludes losses due to theft or damage to your own car.
ii. Third party, fire and theft - On top of third party coverage, this type of policy also covers your vehicle in case it is damaged by far or is stolen.
iii. Comprehensive coverage - This type of insurance policy can provide third party, fire and theft protection, while also protecting you and your vehicle.
Most of the cars in Singapore are covered by comprehensive coverage because it also takes care of personal accident and damage to your own vehicle. What is more, due to the high prices of cars in the country, most car owners would want to protect themselves from losses due to damage to their own cars. Moreover, if you sought financing for your car, the financing company will require you to get comprehensive protection.
Take note that there are situation that are not covered by comprehensive insurance unless you opt to pay for additional premiums, including but not limited to:
* riots,
* flood,
* legal liability due to negligence,
* windstorms,
* strikes, and
* civil commotions.
Taking time to understand car insurance cover can help you decide if you are currently adequately protected or not. Make sure that you take out insurance that would protect you in case you get into an accident, while also keeping your premiums affordable.
by: Chihirokim
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