Difficult to buy car insurance for older cars in Singapore - CEO of Budget Direct Insurance

Buying insurance for older cars can still be difficult despite record numbers of COE renewals, according to Simon Birch, CEO of Budget Direct Insurance.

This is his view as an industry expert that the majority of insurance companies do not sell policies for older vehicles online. Instead many customers of cars older than 10 years are assessed on a case by case basis and have to endure lengthier quote processing times. 

Simon Birch, CEO of Budget Direct Insurance

Birch said: "Owners of older vehicles have sometimes struggled to buy insurance online. It has been particularly difficult to get Comprehensive cover. Insurers need to stay up to date with Singapore motoring trends and that includes catering more to those with older vehicles and making it easier for them to buy." 

Online car insurance quote in 30 seconds

Birch believes that Budget Direct Insurance is one of the few that is making it easier for this sector of the motoring community. He said: "At Budget Direct Insurance, motorists, including those who own older vehicles, can get a quick quote online within 30 seconds. We are one of the few insurers who is able to give an online quote, especially for older cars." 

Frustrated customers have been turning to Budget Direct Insurance for help.

One such motorist is Yap Boon Fong Yvonne. Her current insurer was unable to

8 things to consider when buying car insurance (not enough people think about No. 3)

Not sure how to go about buying car insurance? Or confused over what to consider when buying auto insurance? Below is a simple guide to help you in your search for the most suitable motor insurance that is cheap and value for money given the different factors insurance companies consider that will affect your premiums, some of which you can control. 

8 factors to think about before purchasing your car insurance: 

1. Desired insurance coverage

Based on Singapore’s laws, the minimum requirement is to cover third-party liability. 

To also cover the damage to your own car, you will require comprehensive coverage. While premiums are higher, this is often the choice of most drivers.

2. Add-on insurance coverage

Add-on coverage such as a replacement car feature or a transport allowance rider may be offered by some general insurers. Do note that there will be differences in the maximum number of days that insurance companies will reimburse you for transport or provide a replacement car, as well as the type of replacement car or amount of reimbursement.

3. Insurance policy excess

An excess, also called deductible, is the amount you would have to fork out first before the insurance policy starts to kick in and contribute to your repair bill. The excess level offered will differ from insurer to insurer – you should check that you are comfortable with the amount. 

You can also choose different excess amounts in your search for auto insurance quotations that suit your budget. Some people prefer to keep their excess high to enjoy lower premiums, while others want to keep it as low as possible in case of minor accidents, which results in higher premiums.

4. Other named drivers

Comprehensive Car Insurance Policy Promotion

Get a $108* FlashPay Card when you buy a new comprehensive car insurance policy with DirectAsia.com.

Offer ends 5 March 2015.

Some of the conditions:

The main driver of the car is aged 70 and below and has a valid driving licence of at least 2 years.

The car is not used for commercial purposes or for hire/reward.

No driver has had any class of licence suspended or cancelled in the last 5 years. 

The car is registered in Singapore and any modifications it may have are LTA compliant.

Privacy Statement Please note the policyholder must be the registered owner of the vehicle.For details and terms and conditions:https://secure.directasia.com/online-insurance/car/q-start.aspx Disclaimer

Suspect car insurance fraud - What to do?

What to do if you think you are a victim of car insurance fraud?

There's actually a fraud hotline that you can call to alert possible cases of fraud - 1800–44–37283 or GI-FRAUD

This service was launched by the General Insurance Association of Singapore late last year in an effort to combat the persistent problem of insurance fraud in Singapore, particularly in motor insurance.


General Insurance Association of Singapore launches Fraud Hot-Line

In an effort to combat the persistent problem of insurance fraud in Singapore, particularly in motor insurance, the General Insurance Association of Singapore (GIA) is launching a hotline (1800–44–37283 or GI-FRAUD), which customers and members of the public can call to alert the Association to possible cases of insurance fraud. The hotline will be operational 20 December 2013.

The general insurance industry suffered a staggering $140 million in losses from inflated and fraudulent motor insurance claims in 2012.  Such losses continue to undermine insurers’ financial position and ability to offer lower premiums and write profitable businesses.

Little India Riots - Will insurance pay?

If you are in the insurance industry, or you were affected by the Little India riots in Singapore, one of the things on you mind could be - will my insurance cover or pay?

Here are some points that may be useful, although as usual, be sure to speak to your insurance adviser for the details of your policies:

Motor accident claims involving cyclists double

AIG Asia Pacific Insurance Pte Ltd (AIG), one of Singapore’s leading general insurance providers, said in a press release that motor accident insurance claims received by AIG which involved cyclists doubled from 2010 to 2012.

According to AIG claims, the number of bodily injury insurance claims made by cyclists doubled in the two years.

AIG Singapore, Vice President, Ms Wong Siew Lee, who heads the auto insurance business, said: “We’ve seen a significant increase in bodily injury claims involving motorists and cyclists over the past year.”

According to Ms Wong, AIG has seen an average annual increase of 11 percent over the past
five years in terms of bodily injury claims overall. “This is a rising trend which road users need to be aware of. We encourage everyone to take extra care on the roads,” Ms Wong said.

“With the rise in accidents involving cyclists, it is very important for motorists to ensure their insurance is up-to-date and comprehensive. Whatever the mode of transport, everyone has a right and a responsibility to be safe on the road,” said Ms Wong.

What to consider when buying car insurance?

Here is a guide from the General Insurance Association of Singapore on buying a motor insurance policy:

BUYING A MOTOR INSURANCE POLICY – WHAT TO CONSIDER

Not all motor insurance policies are the same. To meet the individual needs of customers, insurers offer a wide variety of products. By shopping around, you will have the best chance of finding a policy with your preferred combination of price, excess and requirements relating to use and repairs.

As a general rule, the lower the premium, the more restrictions may apply to what is covered, how much you would be paid in the event of a claim, and what your options may be in the event of a claim. For instance, low-priced policies might come with restrictions as to where you can send your vehicle for repair or whether new or reconditioned parts are used. More expensive policies may allow more flexibility in your choice of repairers, etc.

The following are important things to consider when buying a motor insurance policy:

·        Are there restrictions on who can drive the vehicle?

·        What extra cover can you buy?

·        Does the policy meet the requirements of your bank or finance company if you are buying the vehicle on hire purchase or a car loan scheme?

·        How much excess will you be required to pay should you need to make a claim?

·        Does the policy require you to take your vehicle to an Independent Damage Assessment Centre (Idac) for damage assessment?

·        Does the policy have restrictions on who is permitted to repair the vehicle?

·        Will reconditioned parts be used for repairs?

Extended warrant for used vehicles/second hand cars in Singapore

The Singapore office of Willis Group Holdings, the global insurance broker, has partnered with Australia’s largest insurer QBE to launch an Extended Warranty product focused at consumers of used vehicles in Singapore via a network of 300+ used vehicle dealers. The new offering called Asia Care Warranty provides protection for defective vehicle claims arising from Singapore’s latest consumer protection act, commonly referred to as the “Lemon Law”.

The so-called “Lemon Law”, which came into effect in Singapore on September 1, aims to protect consumers from retailers who sell defective goods or “lemons”. Under the law, consumers can report a defective item within six months of delivery and if the retailer can’t prove that the defect did not exist at the time of sale, the consumer can then ask for a repair or replacement, and if that’s not possible, a price reduction or refund.

In the used vehicle business, the expected impact of the ‘Lemon Law’ is an increase in claims against dealers. Whilst dealers are implementing steps to record the condition of vehicles prior to sale, it may still prove difficult in the event of a large and potentially reputation-damaging claim.

The new Willis/QBE Asia Care Warranty product can be incorporated into the sale of used vehicles and allows for both dealers and consumers to protect themselves by getting cover against vehicle defects. Currently the product is available to used vehicle dealers across Singapore.

How to make car insurance claims against foreign motorists and vehicles?

Got into a car accident in Malaysia or Singapore and not sure what to do and how to make auto insurance claims in an accident with foreign cars?

Here is the advice given by the General Insurance Association of Singapore – How to Claim against Foreign Motorist

Purchase auto insurance online in Singapore

Get free automobile insurance quotes online, if you would like to compare the car insurance premiums and rates. Also know as car insurance or motor insurance.


Want to buy car insurance online in Singapore? Probably the most well-known websites for online auto insurance quotes are from Aviva, Direct Asia and CompareXpress.


Trying both Aviva and CompareXpress..


The main difference is that Aviva offers car insurance quotes from its own company while CompareXpress offers motor insurance quotes from a few insurance companies and banks including Etiqa Insurance, Liberty Insurance, China Taiping and CIMB Bank.


Having tried out both with the same information, Aviva's online insurance website to "Get Quick Quote" seems more user-friendly. It could also give me a quote straightaway while CompareXpress had "no matching online

Online car insurance in Singapore - Aviva

Aviva's online insurance model has made an impact in just 16 months since its launch. Aviva's share of the private car insurance market it has insured is at about 4%.In terms of premiums, Aviva's market share was 1.4% in 2010.


As Singapore's vehicle population recorded a high of 945,829 units at the end of 2010 with passenger cars at 597,746 units, the motor insurance industry reported $1.2 billion of earned gross premiums.


Aviva was the first insurer to go direct when it re-entered the general insurance market in Singapore. Two months later DirectAsia.com also started offering car insurance online.