Does Car Insurance Increase With Age

Become the Best Car Insurance in Singapore

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We've all heard that automobile insurance premiums tend to ascent equally cars get older. Simply is it a universal fact? If you own an older vehicle, are y'all better served in the long run by one insurer over another? And does it matter which kind of policy y'all buy? Our team at ValueChampion compared the toll of premiums for comprehensive, 3rd party, fire and theft and tertiary political party only automobile insurance plans among a diversity of Singapore'southward major insurers to detect out.

Comparing the average cost of comprehensive, TPFT, and TPO car insurance premiums for a Toyota Corolla Altis 1.6 of varying ages

Comprehensive Plans

Our study of 6 major insurers' comprehensive plans for the Toyota Corolla Altis one.6 showed that car insurance comprehensive policies actually tend to be the most expensive for new cars. Prices tend to decline until cars hit almost eight years of age, after which indicate they begin to rise once again slightly. The average premium for a comprehensive plan fares at about $860 for cars registered from 2022 to 2022. For vehicles over the historic period of 7, the average insurer will tend to charge a little more than for each boosted year of age.

Comparing the cost of comprehensive automobile insurance for a Toyota Corolla Altis i.6 of varying ages

A closer look at the data shows that among the insurers nosotros surveyed, some stick out in particular. Singlife with Aviva charges the lowest premiums for each vehicle registration yr for the Toyota Corolla Altis ane.half dozen. NTUC Income and FWD are outliers in that they practise non heighten premiums at all for aged cars, instead offering their cheapest rates for cars registered before 2022.

Third Political party, Fire and Theft Plans & Third Party Only Plans

For 3rd party, burn and theft plans, nosotros constitute that insurers tend to accuse the highest premiums for cars under the age of 10; premiums fall once cars hit 10 years of historic period, and and then begin to slowly increase again as the automobile ages. Of notation, FWD stuck out as offering noticeably lower premiums than its contest for TPFT plans and for not increasing premium prices on aging cars. Nosotros also plant that the age of the vehicle had the to the lowest degree impact on FWD premiums.

Comparing the cost of TPFT car insurance for a Toyota Corolla Altis 1.half-dozen of varying ages

In contrast to comprehensive and TPFT plans, premiums for third political party only plans tend to exist cheapest for new cars and gently increase equally cars age. Nevertheless, nosotros institute that this general trend of gradually rising premiums may mask the fact that there is actually a great deal of variation in how different insurers adjust their prices depending on the automobile'due south age. In fact, some insurers may really decrease their premiums rather significantly or not change them at all for cars aging into their teens.

Comparing the toll of 3rd party only car insurance for a Toyota Corolla Altis 1.vi of varying ages

Determination

While conventional wisdom might lead us to believe that paying higher premiums for your car insurance as your car ages is an inevitability, our study showed that this is not always the case. Certain insurers may offer their lowest premiums for the newest cars and others may actually offering their lowest premiums to cars entering their teens. This ways that you should make sure to have an thought of how your premiums are likely to increase or subtract with your current insurer equally your car gets older.

This is particularly important to proceed an middle on because as your auto approaches (or fifty-fifty passes) 10 years of age, you may consider switching to some form of 3rd political party car insurance program with the goal of saving coin. We constitute that switching to a third political party insurance plan such as a TPFT policy may non save you equally much coin as you might call up as your car approaches that 10-year mark. For instance, our study of Toyota Corolla Altis i.6 premiums showed that for cars at least two years former, Singlife with Aviva's comprehensive insurance policy is consistently cheaper than all but one TPFT policy offered by other insurers and several insurers' TPO policies.

On the other hand, some insurers that charged relatively high premiums for comprehensive plans and/or newer vehicles may actually begin to offer quite competitive rates for third party plans and/or older vehicles. One example of this is AXA, which offers amidst the most competitive premiums for TPO plans for cars already over the age of 10. FWD could also be a good pick for individuals hoping to maximise savings on their car insurance, as their TPFT and TPO policies cost hundreds of dollars less than the competition.

Methodology

We used the driver profile of a 30 year old unmarried male with 2 years' driving experience and a 0% NCD who drives a Toyota Corolla Altis 1.6 to collect quotes. To ensure a fair comparison, nosotros held all variables constant except for Vehicle Registration Yr.

Our research and average costs reflect quotes collected from Singlife with Aviva, NTUC Income, AXA, FWD, DirectAsia, Etiqa and HL Assurance. These insurers were chosen for their prominence in the Singapore auto insurance market place and the ability to collect online quotes through their websites.

For TPO and TPFT plans, NTUC Income, Singlife with Aviva and HL Assurance are not represented because their online quote-finding tools practice not allow the pick of TPO or TPFT plans. For Comprehensive plans, nosotros chose not to include AXA as its insurance premiums skewed much college on average than premiums from other insurers surveyed, which nosotros decided would unduly distort the industry boilerplate. For example, its online quote tool returned a premium of S$3,562 for a Toyota Corolla Altis 1.half-dozen registered in 2022, which more than doubled the average of the other half dozen insurers for that vehicle historic period (Southward$1,650).