Advanced Search
Search By model

Things You Need to Know About Car Insurance

02 October 2021

Every driver is required to get auto insurance. Regarding insurance, it is not a matter of if you’re going to get insurance, but how much will the yearly premium cost?


Insurance companies will take several factors into consideration when calculating your policy premium:

1. Age of the insured drivers

Newly licenced teenagers are much more of a liability than older, experienced adult drivers. The premium will be much higher for new drivers than experienced adults.

2. Make and Model of the Insured Vehicle

While vehicles have a depreciated value, newer make vehicles are usually going to signal a higher policy premium than older make vehicles.

3. Purpose of the Vehicle

Vehicles that are commercial and used for driving business income will have a higher premium than vehicles solely for household use.

4. No Claim Discount(NCD)

The no-claim discount (NCD) on your Comprehensive Car Insurance premium increases each year that you do not file an at-fault claim. (This is also known as a no-claim bonus.) The more consecutive years you remain claim-free, the bigger your discount.

5. Car Insurance Excess

Your car insurance excess is the amount you must pay towards a claim. Increasing your excess may result in a reduction in insurance premium.

6. Prior Moving Violations and Auto Collisions

Nearly every insurance company enquire as to your driving history, including, but not limited to, the number of auto collisions you have been involved in the previous several years, and the number of traffic violations of your record. The more violations and prior accidents you have, the greater liability you are for the company. Therefore, the premium is going to be extremely expensive.


In addition to these factors, the expense of your policy premium will also depend on what all you would like covered under your policy. Generally, most policies automatically include coverage for natural events such as earthquakes, floods, typhoons, lightening, hail, and landslides. Typically also included is limited coverage for theft of the vehicle. Coverage for auto collisions and incidents, uninsured drivers, and personal injury is where the cost can change. There are different levels of coverage in this area that will impact the policy premium.


Finding the best insurance policy can be tricky because there are many competing providers. To start, you should first determine what your budget is for insurance, and then contact insurance companies to compare all of the insurance policy options each company has available that best match your budget. The best policy is going to provide you the coverage benefits you need at a cost you can afford.


Make sure you are not overpaying for auto insurance. Contact Hin Lung Auto for your insurance needs! Our team is qualified and ready to assist you!


If you are thinking to purchase a car and are unsure as to how to proceed, contact us today! Hin Lung Auto’s qualified staff is available to help you every step of the way!

You may call our Customer Care now at: +65 6472 2222

‹ Back to listing