Third Party Car Insurance For COE Cars: Advantages & Disadvantages
As owner of a vehicle, it is your duty to find the best Car Insurance that fulfils your needs. The car insurance plan selected should allow you to move around freely on the roads without any hassle or worry. With proper car insurance coverage, it is possible to mitigate risks. Having good grasp on Third Party motor insurance will help you to know the pros & cons associated with it.
About Third Party Car Insurance Singapore
It is also termed as liability coverage. It describes the insurance type that will pay Third Parties a certain amount as settlement. This is in case if the vehicle is involved in some accident. Like other countries, Singapore does prescribe vehicle owners to have minimum insurance coverage. In case, there is damage to Third Party property owing to accident, then Third Party insurance such as NTUC Insurance covers the claim.
There are several insurance providers offering wide range of Third Party motor insurance. You need to first identify the amount of coverage to derive and the package to choose. Low coverage will only mean not covering costs arising from Third Party damage. Again, high coverage will mean having to spend more money on the monthly premiums. Advantages of having Third Party motor insurance
One major advantage derived from having Third Party Car Insurance is you are financially protected from claims arising from damages. This is more so if you accidently cause damage to another’s property or cause personal injury. The owed total amount will be settled by your selected insurance company. Without Third Party insurance, you are likely to be taken to court. You will only end up paying up for all the damage from your savings. This can become problematic, especially if you do not have money.
Another advantage is the savings on the premium over a Comprehensive coverage which covers own damage, third party, fire and theft. Third Party coverage only covers the most basic coverage among the 3 coverage (another coverage is Third Party Fire and Theft).
One disadvantage is that you are not cover for own damage, fire and theft which can be very costly if you need to repair your vehicle when it is your fault or cause by theft or total loss due to fire. It is not advisable to proceed with third party if your vehicle still have market value and it is worth more than the COE value if you decide to scrap your vehicle.
In summary, it is important to have the right coverage and having a third party coverage will help you to save premium, however, it comes at a cost since the coverage is lower and you might be at a disadvantage when accident happen and you are the cause of it. Don’t be penny wise and pound foolish. It is important to have the right coverage and doing some homework online, you will be able to find good deals to have very competitive quote for Comprehensive or at least a Third Party Fire and Theft coverage for your COE car.
Contact one of our representatives to get your personalized quote immediately, our team will be more than happy to respond to all of your questions.
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