Frequently Asked Questions (FAQ)

1. What is Excess?
2. Types of Excess
3. Type of Motor Insurance Coverage
4. What Are The Factors Affecting Your Premium?
5. How To Lower Your Motor Insurance Premium?
6. Why Is Directasia Cheaper?
7. Why Is My Motor Insurance Getting Higher?
8. Can I Borrow My Car To My Family Members Of Friend To Drive ? And Am I Allowed To Claim Insurance If My Family Members Or Friend Who Drives My Car Is Involved In An Accident?
9. What is NCD (No-Claim Discount)?
10. Is No-Claim Discount (NCD) Transferrable?
11. What is No-Claim Discount (NCD) Protector?
12. Should I Add a Named Driver to My Motor Insurance Policy?
13. If I Made A Claim For Windscreen Damage, Does It Affect My NCD?
14. I Have a Sunroof On My Car. Is This Covered?
15. I Have Slight Modification to My Car e.g. Sport Rim, Additional Accessories… Will This Affect the Premium?
16. Will the Car Insurance Policy Cover My Liability for Other People’s Injury, Death and Legal Costs?
17. What To Do During An Accident?
18. Must I Make A Police Report After An Accident?
19. If My Car Is Stolen or Totally Damaged, How Will I Be Compensated?


1. What is excess?

Excess is the amount you have to pay before an insurance claim is paid out. It is only applicable to own damage claim.

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2. Types of Excess

There are different types of excess:

1) Unnamed and inexperience driver Excess
2) Elderly Excess
3) Restricted Driver Excess
4) Voluntary Excess

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3. Type of Motor Insurance Coverage

There is Comprehensive coverage (which is the most common), Third Party Fire & Theft as well as Third Party Only coverage

Comprehensive (known as COMP)

    • This coverage is recommended and mostly preferred common. It is a must for vehicle with financing.
    • It covers Own Damage repair including windscreen on insured own vehicle
    • It cover 3rd Party Damage repair on 3rd party’s vehicle and third party bodily injuries.
    • Excess / Deductibles usually applies unless there is wavier depending on policy.
    • In the event of Total Loss (Due to serious Accident or Theft) the insurance company will pay out the Market Value of the vehicle AT the time of Loss.

3rd Party, Fire & Theft (known as TPFT)

      • This is getting more common with the recent constant increase in Motor Insurance Premium in Singapore
      • Covers 3rd Party Damage repair on 3rd party’s vehicle ONLY
      • No excess/Deductibles applicable.
      • In the event of Total Loss (Due to serious Accident or Theft), the insurance company will pay out the Market Value of the vehicle AT the time of Loss

3rd Party Only (known as TP)

    • This is more common when the vehicle is nearing the 10 years life span or vehicle past 10 year.
    • More affordable but it offers the least protection.

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4. What are the factors affecting premium?

Premium is calculated base on the follow factors:

1. Age Group
2. Driving Experience
3. Job occupation (Indoor/Outdoor)
4. NCD Discount
5. NCD Protector
6. Safe Driver Discount
7. Engine Capacity (cc)
8. Year of Manufacture
9. Body Type
10. Engine Type
11. Gender
12. OPC (Off-Peak Car)

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5. How To Lower Your Motor Insurance Premium

One good way is to compare motor insurance quotes. Nevertheless, cheaper car insurance may not automatically mean it is better. Buying up your excess, insuring without COE and opting for restricted age condition are other ways you can reduce your insurance premium further. It is advisable to seek advice from professional car insurance specialist. Contact us here if you require any assistance.

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6. Why IS Directasia Cheaper?

Just like Dell Computer, they do not have middleman to bring in business hence passing the saving on commission to the consumer.

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7. Why Is My Motor Insurance Getting Higher?

There could be an increase in claims for your make and model, leading to higher premiums. Or the price may be driven by inflation. When repair costs, legal fees and medical costs (et cetera) increase, so must insurance premiums to keep up with these costs in general.

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8. Can I Borrow My Car To My Family Members Of Friend To Drive ? And Am I Allowed To Claim Insurance If My Family Members Or Friend Who Drives My Car Is Involved In An Accident?

You can borrow the car to your family member provided they are driving with your permission and knowledge. You are only allowed to claim when the driver is an authorized driver and the vehicle is not used for hire and reward. It is always good to read the terms and conditions of your policy carefully.

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9. What is NCD (No-Claim Discount)?

NCD is an incentive given by insurers to lower the car insurance premium of safe drivers. NCD will increase 10% each year as long as there is no claim in a calendar year.

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10. Is NCD Transferrable?

NCD is non transferrable to another owner but you can transfer to when buying a new car.

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11. What is No-Claim Discount (NCD) Protector?

The No Claim Discount (NCD) Protector is an extension of your motor car insurance policy. It allows you to make a claim under your policy without losing your NCD (%) status. This benefit is only available to you if your NCD is 50%. (A few insurers like allow their clients to add on this benefit if their NCD is 30 % and above.). This benefit is only applicable when you stay with the same insurer.

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12. Should I Add a Named Driver to My Motor Insurance Policy?

If there’s someone else who frequently drives your car, you should.

Here’s why:
Your car insurance policy covers your “authorised drivers”. An authorised driver is anyone you allow to drive your car. But if this person’s details is not listed in the policy document, there may be an additional excess imposed.
By adding a Named Driver, he or she can enjoy the same excess as you as long as he’s not classified as an elderly, young or inexperience driver. (If he is under such classification, his excess will be higher.)

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13. If I Made A Claim For Windscreen Damage, Does It Affect My NCD?

No. Windscreen damage claims will not affect your NCD. Only own damage claims & third party claims affect your NCD.

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14. I Have a Sunroof On My Car. Is This Covered?

Yes. If the sunroof is factory fitted, most insurers will have factored this into their quotation. For aftermarket (non-factory fitted) parts, the insurer may require you to pay additional premium.

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15. I Have Slight Modification to My Car e.g. Sport Rim, Additional Accessories… Will This Affect the Premium?

It depends on what type of modification is done. Normal sport rims will be okay. Other additional accessories like CNG kit, non-factory fitted sunroof, body kit, etc.. will usually require extra premium on top of the original premium. If you choose not to insure these accessories, your premium may remain the same.

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16. Will the Car Insurance Policy Cover My Liability for Other People’s Injury, Death and Legal Costs?

Yes, insurers will cover your third party repair costs, bodily injuries, death, property damages, etc. Pls refer to the policy wordings of the specific insurer for more details.

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17. What To Do During The Accident?

  • Stay clam.
  • Exchange particulars with the third party.
  • Take on scene photographs if you have a camera.
  • Call the police and ambulance if there is injury involved.
  • Call your insurance hotline

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18. Must I Make A Police Report After An Accident?

Police report is a must only when the accident involved the followings:

1) Government vehicle or property.
2) Injury
3) Hit and run
4) Suspicious of fraud
5) Assault

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19. If My Car Is Stolen or Totally Damaged, How Will I Be Compensated?

If your car is damaged beyond economical repair, stolen or destroyed by fire, the insurer will compensate you by sending you a cheque for the market value of your vehicle at the time of loss. Some insurers will deliver a new car (of the same make & model) to you if your vehicle is still within the limited warranty period.
For some insurers, they have an additional protection package (at a minimal premium) that will not total loss your vehicle even if the damaged vehicle is beyond economical repair unless LTA certified it is not safe to drive.

To find out more about this protection package, please send your enquiry here.

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