Learn how to get the right insurance policy, and make the most of it. By Estelle Low
A recent survey by DirectAsia Insurance found that only 16 per cent of female motorists in Singapore understand their car insurance policy. Photo: maridav / www.123rf.com
To me, buying insurance is one of the most mind-boggling things about being an adult, like financial planning.
I’m a great listener, but not when it comes to hearing my insurance agent out. Having to decode technical terms and consider hypothetical situations really put me off. I love reading, but I definitely don’t enjoy absorbing the fine print on insurance policies. Just pass me a pen to sign off, and coffee please.
So it’s not really surprising that a recent survey of 500 motorists by DirectAsia Insurance found that 32 per cent of female drivers rarely understand the terms and conditions of their insurance policy. Yet those women proceed to buy in hopes that they wouldn’t have to make an insurance claim.
What’s more alarming: Only 21 per cent read the terms and conditions fully, with a meagre 16 per cent claiming to understand their policy’s fine print. Yikes.
That means a majority of vehicle owners are clueless about their motor insurance policy. If the policy is not understood, and can’t be utilised, is there a point in buying it?
To get your money’s worth, heed the following advice from DirectAsia Insurance.
1. Look for a plan built around your needs
Because every driver has different needs, 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% 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 my car be shared with family?
2. Be clear about what your car insurance 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. At DirectAsia, each customer is promised quick and customised support from a personal claims specialist.
3. Understand what your policy does not cover.
Don’t assume that your policy is all-encompassing. Read the policy 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 car, or have car accessories or spare parts you wish to get insured for, check with the insurer to understand if such modifications or items will be covered.
Modifications would need to be in compliance with the Land Transport Authority’s (LTA) guidelines before your vehicle can be insured. You can choose to insure any LTA-approved modifications with DirectAsia.
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. Good to know: DirectAsia offers anytime consultation with locally trained customer care specialists.