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Cost the biggest factor when buying motor insurance: Survey

83 per cent say premiums are an important factor in choosing policies, while 76 per cent say the amount of excess that needed to be paid in case of an accident is vital.

SINGAPORE: When it comes to buying motor insurance, cost, rather than the coverage provided, appears to be the greater concern for motorists.

A survey commissioned by AXA Insurance Singapore between March and April 2012 and released on Tuesday (June 24) showed that 83 per cent of 600 customers found premiums to be an important factor in choosing policies, while 76 per cent thought the amount of excess that needed to be paid in case of an accident was vital.

In comparison, 60 per cent rated claims services as a deciding factor, and 52 per cent thought unique motor benefits important.

Other criteria deemed essential by a significant proportion of customers were the reputation of the insurer when it comes to claims management (71 per cent) and the value of the discount granted based on their No Claim Discount status (82 per cent).

The insurer on Tuesday launched a series of policies aimed at providing different benefits according to customer preferences, which was based on a survey of 1,208 customers – also conducted in 2012 – on their preferences.

Drivers can choose from seven core plans, which include features such as 24-hour towing and transportation in Singapore, West Malaysia or Thailand, and coverage for liability towards third parties. Other plans include benefits such as medical and dental expenses, allowing customers to choose their workshops, food coverage and daily transport allowances.

Said Mrs Doina Palici-Chehab, CEO of AXA Insurance Singapore: “(Customers will) benefit from better value, as they no longer have to pay for benefits they do not want or need.”

However, drivers whom TODAY spoke to expressed some scepticism. Said Madam Daisy Ng, 52, who has been driving for more than 30 years: “I think it’s complicated for me to add this and add that to the plan I choose, when I can just buy a car insurance that covers most of the things I want.”

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