Most insurers in Singapore adopt a "risk factor rating system" when setting your premium. This means that the premium is based on factors other than the vehicle's value or the price you paid for it.

In general, the following risk factors are considered when setting your premium:

  • Vehicle Profile
  • Insured/Driver(s) Profile
  • What the vehicle will be used for (private use/corporate use/commercial use/hire etc)
  • Type of cover
  • Claims history
  • Insurers may also charge a higher premium when there is an impending claim against you but you could request for a possible refund if it is concluded that you are not liable for the impending claim.


These risk factors will not necessarily have an equal influence on the size of your premium. Your insurer will give each risk factor a weighting based on its range of statistics and past claims information.

You may be entitled to a discount on your premium with a No Claim Discount (NCD). Please refer to section on NCD to find out more.