Motor car insurance Singapore providers offer can vary in cost. Your expense may be affected by how many accidents in the recent past or driving offenses are on your record. For those with a clean driving record, car insurance the average cost can range from about S$700 to over S$3,000.
Sounds expensive? Attempting to drive without car insurance in Singapore is riskier and could cost you thousands of dollars, your driving license, and sometimes even jail time.
Below are a few things to keep in mind if you’re considering what will happen if you drive without a valid car insurance policy in Singapore.
Legal penalties
It’s stipulated in The Singapore Motor Vehicles (Third-Party Risks and Compensation) Act that someone caught driving a motor vehicle in Singapore without insurance coverage will be guilty of an offense and, upon conviction, will be fined up to S$1,000, plus imprisonment for up to 3 months, or both. You’ll also be disqualified from using a license for 12 months after your conviction if you’re convicted of this offense.
Disobeying the law could lead to a higher price than what you’d have paid if you had a motor car insurance Singapore mandate. Several exceptions are in this law. You will not be found guilty of:
- The car you’re driving does not belong to you or is under a contract of hiring or a loan
- You’re using the car for work
- You genuinely do not know that a valid insurance policy was not in effect
What happens if you get in an accident?
Besides the legal implications you might face by driving without car insurance, and you’re also magnifying the risk to yourself and your finances. Getting into a car accident while driving uninsured leads to the higher personal expenses of repairing or replacing your car, damaged personal possessions, and medical expenses. You also face a lawsuit from another party and must pay for any damages, losses, and medical expenses. This could cost you thousands of dollars that would otherwise have been insured.
Consequences of fronting
Some people are deemed “high-risk drivers” and are asked to pay more for car insurance. Many of those dive into a practice known as “fronting,” where they attempt to get a cheaper rate on insurance by using details of a different, better driving profile. This is a form of fraud. Attempting this strategy and being found out could invalidate your policies entirely, especially in an accident.
How can car insurance protect you?
No matter how careful you drive, there’s always the possibility of meeting a careless or reckless driver. Motor car insurance Singapore’s top providers include comprehensive and reliable car insurance. Many of these providers offer discounts and vouchers, so check them out. You can apply up to 90 days before your current policy’s expiry.Additional benefits of a plan include:
- No Claim Discount (NCD) reduction by 10% when you are at fault
- Free roadside rescue services if your car breaks down
- Gap Cover and Loan Protector benefits that cover your outstanding car loan in the event of a total loss of your car and the death of the policyholder, respectively
- Add on benefits to conduct repairs preferred workshop
- Not paying a single cent if you’re not at fault applies if you are involved in an accident with an identifiable Singapore car.
Indeed, nobody wants to pay car insurance if they can help, but avoiding breaking the law will cost you much more than your motor car insurance would, both for the time and money invested. If you want the value motor car insurance Singapore offers, you can check out the ones offered by top providers. Do ample research before committing – check the insurer’s track record, policy details, and user reviews.
