Car Insurance – All What You Need To Know

Car Insurance protects you and your vehicle against loss and damage on account of unforeseen risks and unexpected incidents.

image of auto accident

There are different kinds of car accident insurance coverage that you can buy.

Buying insurance for your car is the protection wherein you enter into a contract with the insurance company who agrees to protect you against financial losses caused by accidents and any subsequent liabilities.

Nature of coverage:

The policy taken will determine and outline clearly the nature and types of losses covered and the extent of coverage.

Usually its coverage encompasses property, medical expenses and the liability. Property coverage allows for settlement of insurance sum in the event of your car being damaged or stolen.

Medical coverage undertakes to pay for overhauling of injuries and liability pays when you are responsible for damage or injury in an accident. The cost of car insurance depends on your age, the car you drive where you live, your driving record and the coverage included.

Types of car insurance:

There are various types of car insurance policies available today. It is left entirely to an individual’s discretion to select the right policy that is affordable for him to adopt.

Liability insurance:

This type of insurance is a mandatory for every driver. Liability insurance pays in the event of any accident when it is determined that the accident is a result of your fault.

It covers accidental physical injury and damage to property that happens to another person. This is of course the basic, minimum insurance requirement in most countries across the globe.  Regular liability is not really all that much different than what a mechanic would get for coverage as in a garage liability insurance policy.

Collision insurance:

This type of insurance helps to pay for damages on account of collision with another vehicle, an object or car roll over. This policy covers all damages excepting that a deductible is required.

Comprehensive coverage:

It covers everything that is not actually collision related. This policy pays for cost in the event of your car being stolen, hitting an animal or damaged by fire or weather conditions like hurricane, flood or storm. It covers situations and not accidents.

However this type of coverage is optional and usually purchased when the cost of the vehicle is more than $1000. Deductibles also apply and they may range from $250 to $1000.

Personal injury protection:

This type of policy is mandatory as it is covers cost associated as a result of an accident. It covers medicals expenses incurred for the treatment of persons injured in the accident no matter who is at the fault for the accident.

5. Uninsured motorist coverage:

This type of car insurance undertakes to pay for damages when the person injured is covered under the insurance but the driver does not possess liability insurance. This coverage varies from state to state depending upon the policy regulations and provisions.

6. Under-insured motorist coverage:

This type of insurance covers damages when the covered person is injured in an accident where the driver may possess insufficient liability insurance.

Before purchasing a car insurance you should be fully aware of the details of the insurance policy and its coverage as it can vary greatly from one place to another.

This is very essential to ensure that you are fully protected in the event of any accident to your car. Choosing the right type of policy safeguards you against unnecessary financial and emotional troubles – even if you own a car in Singapore or any other country for that matter.

Cars in Singapore

This article provides a simple summary of the retail perspective of automotive industry in Singapore.  It will focus mainly on new and used/pre-owned car categories.

New cars in Singapore are sold through two main distribution channels.

The first channel is authorized by the manufacturers and includes manufacturer, importers, distributors, retailers and authorized agents.

The second one is grey importers/parallel channel, which encompasses manufacturers, overseas dealers, importers and retailers.

Nonetheless, these two broad channels exclude those individuals who import their vehicles on their own. Besides, it is important to note that the two channels differ in a number of ways that are explained below.

The warranty program of an authorized by manufacturers channel is usually supported by the manufacturer. For grey/parallel channel, the warranty program is strongly supported by the retailer.

Nonetheless, there are manufacturers whose warranty program is binding.
In case of product recalls, the first people to know are those in the authorized channel.

Besides, they have an obligation to contact all affected clients to bring back their vehicles for rectification.

Although it is possible to recall vehicles in grey/parallel importers channels, they usually lack a well-tuned product recall program. This may be detrimental to their operation, which is a risk to their competitiveness and sustainability in automotive industry in Singapore.

Authorized Dealers

Authorized dealers normally maintain healthy stock levels. They also provide excellent and timely delivery. However, Grey/parallel importers normally maintain limited stock, although this does not mean they are not resourceful in their area of business.

Authorized dealers provide flexibility in options. They can customize a car to their customers. This is especially for affordable cars.

Lack of flexibility in Parallel channels

On the other hand, parallel channels lack flexibility in their options. They simply deliver what customers order.

The quality of after sales service offered by authorized dealers is high. This is because they have trained and experienced technicians and better diagnostic equipments. Besides, technicians undergo regular training programs on various automobile products.

The after sales service offered by parallel channel dealers is of lower quality. This is because the dealers normally outsource such services. Therefore, it is advisable to check out grey dealers from such a perspective.

Authorized car dealers in Singapore normally deals in specific variants and models. However, parallel dealers lack specialization in their operations. They deal in any variant and model as long as it meets the outlined guidelines, such as safety and emissions.

The choice between authorized and parallel channels depends on the individual needs of a customer. The list of various authorized car dealers in Singapore can be obtained from “AA’s magazine” or from their website www.aas.com.sg.

It is an overwhelming experience buying a used car in Singapore. This is because the market is highly segmented with numerous larger players and many small players. Therefore, it is a daunting task to find a dealer with reasonable services.

Risks

The risk of buying a used car in the country is similar to other countries with some additional complexities. For instance, Singapore car market is peculiar because of cultural influences and regulations. Such factors may affect the value of a used vehicle.

Therefore, anyone considering used cars imports from Singapore must ensure that the vehicle is inspected and evaluated by professionals such as AA. Most advertisers use the words “Vicom or STA evaluated.” However, these are just certifications on road worthiness.