Before driving a car, the law dictates that it should be fully insured. Unfortunately, at some point, you may not need car insurance or be in search of a better deal. For a car insurance refund in Singapore, one should consider the terms and conditions of an insurance provider. This piece explores what a car owner should know about refunds by Direct Asia car insurance Singapore and leading car insurance providers in Singapore and beyond.
When Should I Ask for a Car Insurance Refund?
– In case you are relocating. You may have to relocate to a different country for better job opportunities or personal reasons. For a car insurance refund, you have to cancel the previous insurance coverage and purchase a new one to get a refund and avoid driving without a license.
– If you lose the car. At some point, you may gift a loved one with your previous car or sell it to meet various obligations. Canceling your previous insurance policy may qualify you for a refund while ensuring that you can save for another car or upgrade the cover for another car.
– To get a better deal. Getting the right insurance cover is overwhelming for the first time and subsequent subscribers. If you are in Singapore, compare leading companies like Direct Asia, eTiQa, NTUC Income, and FWD insurance to find the best deal. Canceling your previous insurance policy qualifies you for a car insurance refund.
– If the insurance provider offers refunds. Insurance providers are likely to offer refunds, discounts, and incentives once in a while. In the recent COVID-19 pandemic, some providers offered refunds and paused non-payment policy cancellations along with late fee charges.
How Can I Get A Car Insurance Refund?
For a trouble-free car insurance refund;
· Conduct research. If you need a car insurance refund, conduct in-depth research to understand the inner workings of car insurance. You may visit the insurance provider’s website or contact an agent to discover specifics of your obligations through the process.
· Purchase a new insurance policy. The next advisable step is to purchase a new car insurance policy to avoid driving around without meeting legal requirements. Timing is vital in helping you avoid a lapse in coverage and hefty fees.
· Reach out to your former insurance provider. After getting a more favorable deal, contact your previous provider to initiate a cancellation policy. Visit the website, call the number on your card, send an email, or use the mobile app at your convenience.
· Complete the paperwork. If you qualify for a refund, be sure to complete all paperwork and complete it by signing a cancellation letter. Your insurance provider issues a policy cancellation notice and the designated amount to your account.
Car Insurance Refund for Full Payments
If you pay the annual car insurance premiums in a single payment, completing your insurance refund is simpler and straightforward. Most insurance companies offer discounts for full payment at the start of a six- or twelve-month policy term.
To get a refund, you should cancel the insurance policy before the policy ends, remove some drivers or vehicles from the cover, move out of state, or change coverage amounts. Removing the extra expenses translates into reduced premiums, amounting to a partial refund.
Car Insurance Refund for Monthly Payments
Based on your financial obligations, preferences, and income, you may choose to pay monthly premiums. To get a refund, you may need to cancel the insurance cover before mid-month, in which case, you may qualify for a half refund at the expense of previous premium payments.
Car insurance Refund After Cancellation
Your car insurance provider may cancel the cover in case of non-payment, multiple car accidents, violation of terms and conditions, and high-risk driving habits. In this case, your qualification for the refund depends on your provider’s terms and conditions.
For non-payment, your insurance provider may ask you to pay for late payments. Other than non-payment, after canceling the policy, your insurance provider may be obligated to refund a portion of paid premiums if you had paid in full.
Time Taken to Receive a Car Insurance Refund
The time taken to get your refund and complete the cancelation may differ from one company to the next. If you are a member of Direct Asia car insurance Singapore, to terminate your cancellation, a $90 cancellation fee is deducted from the pro-rated refund. You are required to submit the LTA Notification Transfer of Ownership or car’s sale/purchase agreement.
Avoid car insurance problems by watching out for your renewal date, canceling the policy on the due date for monthly payments, and making changes to the car’s insurance renewal date. For the best experience, consider the terms and conditions of your current and next insurance provider