Consequences of Getting Caught Without a Valid Car Insurance in Singapore

So many Singaporeans have a tendency of not bothering of acquiring a good car insurance for their automobiles. The general mentality revolves around a generalized thought of not actually, getting into a car crash or imagining the possibility of a car theft or their car getting damaged by either vandalism or nature’s brawl with humanity. But the biggest reason, statisticians quote, is the price involved in obtaining a car insurance.

Agreeably, prices are steep and can range between $700 to $3000 depending on the specifications of an owner’s vehicle. The insurance price may go further higher if a car owner has a previous record of getting into accidents or driving offenses if any.

Even if that might be true, the penalty of being caught without a valid car insurance in Singapore is very hefty. The punishment may range between a fine of thousands of dollars, revoking of the legal driver’s license or in worst cases even jail time. Naturally, it seems like a better idea to buy a car insurance instead of going through any one or all of the aforementioned scenarios. At and for situations like these, we provide customized insurance to cover for losses. Among our several car insurance plans, this particular plan is number seven on our list. Hence, if you find yourself thinking about this situation go for car insurance in Singapore’s jurisdiction. As a responsible organization, we sincerely advise car owners to purchase insurance for their own safety. Following is a brief on additional problems that a car owner is most likely to face if held by the authorities caught driving without a proper insurance.

Legal trouble

The Singapore motor vehicles law has defined that car owners caught devoid of a car insurance can be fined up to $1000 or three months of jail time or in some cases a combination of both. The act known as Third party and Compensation Act is fool-proof and ensures a strict punishment for owners convicted by the court for not producing a valid car insurance at the time of being arrested by the police. If convicted this will always result in an individual’s disqualification from retaining or obtaining a car license up to
twelve months from the date of conviction.

Evidently, the choice of disobeying the law has dire consequences and it seems more convenient to spend a few thousand dollars on paying a premium for car insurance instead of going through this nightmare. There are a few exceptions to this otherwise extremely strict act such as:

  • If the driver of the car does not own possession to the car he/she is driving or if the vehicle is hired or loaned from corporate car rental companies such as Bizlink
  • If driving a car is a line of work
  • If one was under the honest impression that they did possess a car insurance but they just realized that they don’t.

Being released with the help of such exceptions happens at times but is rare. It is not in the best interest of any car owner to be
actively involved in a conflicting situation with lawmakers, hence it is always advisable to choose the safer option, this option is owning a car insurance.

Incident of getting involved in a car crash

Evolving times are getting harsher when it comes to brutal instances like that of being involved in a car crash. In an unfortunate
incident of a car crash that involves two parties, the other party is more than likely to first look out for a compensation for their damages rather than reaching out to seek the well-being of the other party.
In most cases, they will file a lawsuit in order to compel you to pay for any losses that have incurred to their car, damages or their medical bills. Although, if involved in a nasty situation like this it is your duty to, first pull yourself out of the wreckage. In conjunction with car insurance,  we also provide car rental services to get you out of car crash situations.

Hence, in addition to the legal consequences one might face driving without a car insurance, an accident circumstance just adds up to the trouble. This portrays a huge risk to one’s financial and physical well-being. Not only will you have to pay to get your car fixed and your personal medical bills, you are also liable to pay the bills for the other person involved in the crash, be it for the damages of their materialistic or personal belongings.

Even if somehow you manage to sort these expenses in times of extreme distress by shelling out possibly thousands of dollars, you are still left with the authorities chasing you for driving without a car insurance.

Doesn’t it seem wiser then, to instead opt-in for a car insurance in order to safeguard yourself from unwanted situations like these?

Why is fronting a very bad idea?

Previous records are proof that many people from Singapore have been charged with fronting when opting in for a car insurance.

What is fronting?

Fronting is an act of an individual who displays a different image of himself or herself when buying a car insurance. Individuals who don’t have an amazing driving record are prone to do so. They do it because revealing their actual record forces insurance companies to initiate insurance plans that have a much higher premium than regular insurance plans. Insurance companies are not at fault here because they are legally obligated to do so.

So this fake profile to obtain cheaper car insurance works to a point before going bust. Basically, this is a form of fraud. This sort
of fraud does not really go well with the authorities at all. What an individual is doing is not telling that he/she is a high-risk driver, but instead trying to come clean just to buy car insurance with a lesser premium. The result? If fronting is adapted as a
technique to buy cheaper insurance, this may result in a 100% rejection of claims or in some cases complete cancellation of the purchased insurance, especially in scenarios involving a car accident.

Since this is a fraud, fronters will definitely go through legal trouble as well and may find themselves in a tight spot by paying heavy fees to engage lawyers for their trials.

To conclude

Nobody can deny the fact that buying car insurance is something that people are not very fond of. Although that might be true to its core, now that the possibilities of driving without a car without insurance are discussed it seems like the most sensible thing
to buy insurance. Apart from giving you peace of mind and making you legally compliant, buying insurance ensures that you don’t end up paying more than your insurance premium in fees, covering up for losses etc. Do ensure though, that the premium that you are paying is not in excess. In order to know the optimum premium for your vehicle visit our website for a detailed synopsis
of car insurance plans.

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