These four types of accidents accounted for 95% of all car-related crashes in Singapore last year (2017) – speeding, drink-driving, reckless driving, hit-and-run. Will your motor insurance cover you if you’re involved in one of them?
Usually, your car insurance should step in to help you out, but there may be some instances where your car insurance will refuse your claim. Below, we analyse some of the most common types of car crashes in Singapore that accounted for 95% of all car-related accidents in 2017 and whether they’ll be covered by your car insurance.
Speeding-related accidents still account for around 10% of all motor-related accidents, with speeding causing 762 accidents in 2017. f you are at fault, you should be prepared to pay an excess on your claim since you will be filing a claim against your own policy. This could easily cost you $400 to $800, depending on the excess you had set with your insurer. Not only that, but you will also have to work with the third-party’s insurer to determine who was at fault. If you were at fault (and you likely will be if you were the one who was speeding), your insurance premium can increase by 30-50%. However, you will not be covered for any claims if you were speeding for illegal recreational purposes (for example, participating in a street race).
Drink-driving accidents, which have been hovering around 140 incidents each year for the past five years and accounted for 2% of all motor-related accidents in 2017, are thankfully on the decline. However, even though they are few in number, accidents caused by drink drivers usually result in hefty damages. Unsurprisingly, if you get into an accident while drink driving, your insurer will not pay out for any damages, loss or injuries. Not only is drink driving illegal, but you also risk having to pay out tens of thousands of dollars in legal fees, vehicle damages and medical expenses.
Most of Singapore’s car accidents are due to reckless driving, with around 6000 cases recorded per year and accounting for 86% of accidents in 2017. Reckless driving includes not paying proper attention to the road, failing to keep a proper lookout, running red lights and turning without care. If the cause of the accident was due to you texting, you should know that holding any type of mobile device is now illegal and is a reasonable cause for fines and even jail time. Additionally, your car insurance policy will be voided afterwards. Even if you were just driving recklessly but didn’t commit an illegal offence (i.e. texting or drink driving), you will still have to claim against your own policy since you are at fault and will suffer additional financial losses from an NCD (no claim discount) drop and excess payments on repair claims.
Hit-and-runs, especially those involving parked cars, are a nuisance because it makes it that much harder to file a claim, especially if you have no proof of the accident. Still, parked cars that are damaged should be reported to police and your insurer right away. With these accidents, you should be covered and can file a claim. If you can, you should drive your car to the nearest authorised dealer and submit a claim form with their help. Additionally, if you have a dashcam (in-car camera), you can use it as additional evidence of the incident and see if you can somehow identify the driver responsible for the hit-and-run.