Motor insurance on new cars

When you buy a new car, the distributor usually adds the first year's insurance as part of the package.

They are able to squeeze the insurance company to provide low premium, high commission (to the distributor) and to repair the car (in the case of an accident) with the distributor's workshop at high charges.

Guess what? The insurance company makes a big loss during the first year. They hope to recover their loss by charging higher premium rates from the owners in subsequent years.

If you renew your insurance with the same insurer, you are likely to pay more than the competitive rates outside.

You can save a lot of money by shopping around. You can call NTUC Income at 98 462663 (ie 98 INCOME).