It is compulsory to have your car insured in Singapore, and Third Party Only (TPO) car insurance is the most basic insurance plan Singaporeans can purchase.
Whether you have an old car or are on a budget, if you want to obtain coverage that will get on the road, it is imperative to compare car insurance third party only policies before making a purchase. This type of insurance covers you against any liability which can happen if your car causes loss or damage to a third-party vehicle, person, or property.
However, considering the premiums may vary from one insurance company to another, comparing quotes from different providers can help save.
This post will discuss factors to consider when comparing third party only car insurance plans.
What is a third party only car insurance?
In Singapore, third party only (TPO) car insurance is a plan that covers only injury or death to other people and/or damage or loss to their property. It is the most basic coverage car owners looking to abide by the law can purchase.
Importantly, although it protects you from being financially liable for any losses and damage that your car causes to a third party and their property, it doesn’t cover your own car. For this reason, it is generally recommended for too old cars that are at the end of their certificate of entitlement lifespan.
Factors to consider when comparing car insurance policies
The rates for car insurance policies usually vary from one insurance company to another. That’s why it is important to compare car insurance third party only plans before making your final decision.
Along with comparing the rates, there are other things to keep in mind. Here are factors to look out for when comparing policies:
· Company credibility: Reputation is always an important factor when making a selection. For great service, you should always consider purchasing your third party only coverage from a company with an excellent market reputation. Even better, reputable insurance companies tend to have better prices for their products.
· Policy premium: Third party only policies are generally cheap, meaning many people can afford them. Importantly, while you may be tempted to go with the most affordable offer, it doesn’t make any sense to go with an unreliable insurer just to save a few dollars. Make sure to strike a good balance between all factors.
· Claim settlement ratio and claim filing process: When selecting an insurer, it is always a good idea to go with an insurer having one of the highest claim settlement ratios. With such insurers, you will be almost certain that your claim will be processed and settled on time should your car cause damage to another person or their property.
Third party only policies are simple, which makes it easy to understand them. Even so, you should not take another risk of purchasing a policy from an unreliable company.
Are you a budget-conscious driver or planning to get an old car on the road? You can compare car insurance third party only policies to ensure that you are getting the most affordable coverage from a reliable provider. Purchasing cheaper coverage will also help you save enough to take care of damages to your car in case of an incident.