Age and gender are two of the main factors insurance companies use when determining car insurance premiums. They consider these characteristics to tell them valuable information about your driving experience and the likelihood that you will get into an accident. The less likely you are to get into an accident based on these two factors, the less cost the company stands to incur by insuring you, and the cheaper a quote you will receive.
But this variation makes it somewhat difficult as a potential customer to know if you're being offered a fair rate, or if you're being ripped off. With that in mind, we've crunched the numbers to find the average cost of car insurance in Singapore depending on your age group and gender. We hope that this arms you with the knowledge you need to recognize a good deal when you see one.
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Average Car Insurance Costs by Age
The ValuePenguin team collected quotes from a collection of major insurers in Singapore to see how age affects the cost of car insurance. The following rates assume 5 years' driving experience and a No Claims Discount (NCD) of 0% for consistency, and as such do not take into account the significant discounts you would receive for more years of driving experience and a higher NCD. For example, for those who have clean driving records, their NCD could save them more than 50% on their car insurance premiums.
Average Car Insurance Cost for Drivers in their 20s
Generally speaking, insurance companies in Singapore charge the highest rates for younger drivers, whereas older drivers tend to get much cheaper rates. We found that drivers in their 20s are charged an average quote of S$2,292, over S$800 more than the average rate charged to drivers in their 30s (S$1,463). This is because younger drivers statistically pose a much greater risk of having an accident, due in part to their relatively fewer years of driving experience. For instance, claims data released by AIG show that young (under the age of 35) and single drivers make the highest number of claims, and are often fully or partially responsible for accidents in which they are involved.
But driving experience isn't the only reason younger drivers face more expensive rates. The quotes we used to find average costs were based on equivalent years of driving experience across all age groups, and yet younger drivers still face much more expensive quotes. It turns out that younger drivers engage in riskier driving behavior, too. An online survey conducted by AIG Singapore in 2015 found that 63% of respondents aged 18 to 35 admitted to unsafe behavior on the roads.
Young and Inexperienced Driver Excess for Drivers in their 20's
Drivers in their 20s should also note that in addition to the higher premiums, they may well be obligated to pay a Young and/or Inexperienced Driver Excess (typically in the range of S$2,000 to S$3,000) on top of the mandatory standard excess they must pay whenever they file a claim. This is something that is very important to pay attention to, as different companies designate different ages under which the fee is imposed.
What does this mean? If your insurance policy has a standard excess of S$600, and a Young and/or Inexperienced Driver Excess of S$2,500, you'll have to pay S$3,100 out of your own pocket every time you have an accident before you receive any benefits from your insurer. If you're in your 20s, we highly advise you to read the fine print closely to see what you'll be obligated to pay before committing to a plan. It may be worth paying a slightly higher premium if the plan comes with a significantly lower Young and/or Inexperienced Driver Excess, or if you can avoid paying it at all. To learn more about which insurers offer the best deals to young drivers, check out our 2017 list of the best and cheapest car insurance plans in Singapore.
Cost of Car Insurance Increases Once Drivers Enter their 50's
While car insurance premiums decrease substantially for both male and female drivers in their 30's and 40's, we found that insurance premiums generally begin to rise again once drivers enter their 50's. This is because many insurers consider drivers to grow more accident-prone as they age. We found that drivers in their 50s faced an average rate of S$1,504, an increase of 5% from those in their 40s.
Although some insurers in Singapore continue to increase premiums as drivers age into their 60s, this is not at all the case* for others. While many of the companies studied charged higher rates for men in their 60s than men in their 50s (FWD, DirectAsia, HL Assurance, Budget Direct, AXA Sompo and Aviva), Etiqa actually charged lower rates for men in their 60s than men in their 50s and NTUC Income did not change their prices at all. Though several companies did charge women in their 60s at a higher rate than women in their 50s, Aviva offered a cheaper rate to women in their 60s than they did to women in their 50s while Etiqa and NTUC Income did not change their pricing. We strongly advise elderly customers of car insurance to pay close attention to this as they consider which plan to buy.
Average Cost of Car Insurance by Gender
We found that male drivers always pay more for their car insurance premiums than female drivers. Drivers in their 20's had the biggest difference of costs between genders, with men paying an average of S$243 more than women for their car insurance policies. The difference in cost declined to a less significant level for older drivers, generally not exceeding S$100.
Men have to pay higher premiums than women do across all age groups because insurance companies consider them to be far more accident-prone and therefore a greater risk. In fact, Aviva's claims data for 2015 show that men are 1.4 times more likely to get into an accident as women.
These rates assume 5 years' driving experience and a No Claims Discount (NCD) of 0%, and as such do not take into account the significant discounts you would receive for more years of driving experience and a higher NCD. For example, for those who have clean driving records, their NCD could save them up to 50% on their car premiums.
|Driver's Age||Average Cost for Men||Average Cost for Women|
To arrive at our determinations of the average cost of car insurance for Singaporean consumers, we culled data and collected quotes from seven leading car insurance providers in Singapore.
In order to standardize our results, we needed to make certain assumptions about the type of plan and level of coverage sought by the average consumer. This study assumes standard comprehensive coverage, since comprehensive coverage is compulsory for owners driving cars less than 10 years old that are still under financing. Due to the costliness of cars in Singapore, this makes it the most common type of insurance plan bought. In an effort to ensure that quotes collected reflected comparable levels of coverage, we standardized coverage of medical expenses, personal accident benefits and loss of use for all the quotes we collected around what is generally considered a "value" plan that excludes other "bells and whistles" optional features.
The driver profile we used to get quotes held constant all variables apart from age and gender. He/she is a unmarried driver of a 2016 Toyota Corolla Altis 1.6, and a first-time car owner and relatively new driver, with 5 years' driving experience, no claims filed, and 0% NCD (No Claims Discount). He/she works indoors as a professional. Average costs reflect the mean of quotes collected for a male and female driver profile.
Quotes and information used for the purpose of this study were collected from the following insurance companies: NTUC Income, AXA, Aviva, Etiqa, Budget Direct, Sompo, AIG, DirectAsia, FWD and HL Assurance. These companies were chosen based on their popularity with consumers in Singapore as well as the ease of acquiring quotes and detailed information about their plans.
*One good example of this is Liberty Insurance, which in collaboration with the Automobile Association of Singapore (AAS) and Singapore Optometric Association launched a new motor insurance plan in 2014 designed specifically for elderly drivers with good driving records, the AA Senior Motor Plus policy.
**The estimates here are ValuePenguin's alone, and have not been reviewed, approved or otherwise endorsed by the insurance providers.