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5 Factors Affecting Motor Insurance in Singapore

5 Factors Affecting Motor Insurance in Singapore

Motor insurance in Singapore is influenced by various factors that can affect the coverage options, premiums, and overall policy terms. Understanding these factors is crucial for vehicle owners seeking motor insurance. In this article, we will explore five key factors that can impact motor insurance Singapore, helping you make informed decisions when selecting an insurance policy.

  1. Vehicle Type and Value:

The type and value of your vehicle play a significant role in determining motor insurance premiums. Insurance providers consider factors such as the make, model, age, engine capacity, and market value of the vehicle. Generally, more expensive or high-performance vehicles tend to have higher premiums due to increased repair costs and theft risks.

  1. Driver’s Age and Experience:

The driver’s age and driving experience are important factors considered by insurers. Younger drivers, typically those under 25 years old, often face higher premiums due to their perceived higher risk of accidents. Similarly, inexperienced drivers or those with a history of accidents or traffic violations may also face higher premiums compared to more experienced and responsible drivers.

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  1. Claim History:

Insurance providers take into account the claim history of the policyholder. If you have a history of making frequent claims or have been involved in multiple accidents, insurers may perceive you as a higher risk and charge higher premiums. On the other hand, a clean claims record may result in lower premiums or discounts on your motor insurance.

  1. Usage and Mileage:

The frequency and purpose of vehicle usage can impact motor insurance premiums. Insurers assess whether the vehicle is used for personal, business, or commercial purposes. Additionally, the annual mileage or distance driven per year can influence premiums. Vehicles used for commercial purposes or with high mileage are generally associated with higher risks, leading to higher premiums.

  1. No-Claim Discount (NCD):

The No-Claim Discount (NCD) is a reward system offered by insurers to policyholders who do not make any claims during the policy period. The NCD allows for a reduction in premiums for every claim-free year, up to a certain limit. The percentage of NCD varies between insurers and is an important factor influencing the overall cost of motor insurance. Maintaining a clean claims record and accumulating NCD can significantly lower your premiums over time.


When seeking motor insurance Singapore, it is important to consider the factors that can affect your coverage and premiums. These factors include the type and value of your vehicle, driver’s age and experience, claim history, usage and mileage, and the availability of a No-Claim Discount. By understanding these factors, you can better navigate the motor insurance market, compare policies, and select an insurance plan that suits your needs and budget. Remember to review your insurance policy regularly and make adjustments as needed to ensure adequate coverage and affordability.

Skyla Howell