As a motorist, getting car insurance is one of the most important things you can do. Although no one wishes for things can go wrong, sometimes the unexpected still happens on the road. It is good to ensure that you have a backup plan in the form of car insurance.
If it’s your first time purchasing an insurance policy or if you would like to know how it works, keep reading!
What Is Car Insurance?
Car insurance is a type of coverage that provides financial protection for motorists. It will pay for the other motorist’s medical expenses and repairs if you are involved in an accident with your vehicle or if it is stolen or damaged in any other way.
When you purchase car insurance, you essentially enter into a contract with the insurance provider, agreeing to pay monthly premiums in return for protection against monetary losses resulting from accidents or other damage to your car.
Moreover, when you choose Bubblegum’s Comprehensive + Warranty plan for your auto insurance, your coverage won’t be limited to accidents. You’ll also get engine and gearbox protection, so if these components malfunction, your repair work will be covered.
How Does Auto Insurance Work?
If you’ve never had a car insurance policy before, you might be wondering how it all works. We’ll discuss the fundamentals in the section below.
The insurance provider promises to cover your expenses in accordance with the terms of your policy in return for premiums. Individually priced plans enable you to tailor the level of coverage to your specific requirements and financial constraints. Policies often have renewal durations of 6 or 12 months.
Every vehicle in Singapore must be insured. Before your car’s road tax may be renewed, it must be covered by insurance for the entire renewal time. Moreover, your coverage must include third-party liability protection for fatalities and physical harm, at the very least.
Who Is Protected?
Whether you are driving your vehicle or someone else’s, the car insurance coverage will protect you and the other relatives listed on the policy. Anyone operating your vehicle with your permission who is not listed on your insurance policy is also covered under your policy.
Most insurance plans cover personal driving only. This means that if you use your vehicle for business-related activities, such as delivering goods, it won’t offer coverage.
Moreover, you won’t be covered if you drive for a ride-sharing company like Lyft or Uber. Certain auto insurers now provide supplementary insurance plans that extend coverage to drivers of vehicles used for such services (at an extra cost).
When Will Car Insurance Not Cover Your Claims?
The truth is that there are instances where auto insurance doesn’t cover your expenses. If you are driving under the influence, for example, and cause a car accident, you will not receive financial coverage from your insurer because of your negligent behaviour.
Suppose an unlicensed driver drove the vehicle at the time of the incident or if it had illegal modifications done. In that case, you will be responsible for covering the associated costs.
How Do Claims Work?
Following an accident, you file a claim to cover the associated expenses, such as property damage and injuries. Submitting an insurance claim is like documenting the incident that caused your damage to the car and having your insurance provider verify it.
Your insurance company will cover the expenses if you submit a claim for damages and it is approved.
Working with an insurance adjuster is a requirement of the claims procedure. Following a car accident, an adjuster decides who bears the blame and how much is owed to you in damages. If your claim is granted, you will get compensation for the cost of your losses and injuries.
Need Car Insurance?
If you’re looking for affordable, comprehensive coverage, you can contact Bubblegum Singapore, the insurance platform built by MoneySmart.
Our insurance plans offer accident damage coverage and engine and gearbox warranties, so your vehicle will be covered in the event that these essential parts malfunction.
To find out more about our car insurance plans, contact us today by completing our online form!