Wednesday, August 5, 2009

High cost of car ownership

The insurance companies claimed that there are more accidents, due to more cars on the roads. This has caused more claims and increase in premium for motor insurance.

Motor insurance premiums increased by 27% last year. It is likely to increase by another 15% this year. The hefty increase of 40% over two years far outstripped the inflation rate. This increase in premium is excessive, considering that the economy is now in recession.

The public should think twice before buying a car. You do not enjoy the use of the car, due to congested roads, no parking space, ERP charges, high petrol prices and now, high insurance premiums.

It is better to use public transport, such as the MRT or buses. It is easy to learn how to use public transport. I recommend the Public Transport Guide, available at Popular Book Stores, for a price of about $7 (inclusive of GST).

If you need private transport for the special occasions, take a taxi. What you spend on the occasional taxi rides is much lower than the fixed cost of owning a car.


  1. The problem with taxis though is you can't put your child car seats in. And children should be in a car seat/booster until age 9 (?). It's not always practical to run around with small children without using a car.

    While I agree that more cars on the road means more accidents, it doesn't necessarily mean that there is a higher incidence rate of accidents.

  2. I suggest insurance companies to take a leaf out from the CPF Medisave scheme.

    Insurance companies pay out only for catastrophic cases, such as serious damage to the car. It will have co-payment and deductible components. This is to reduce the insurance premium.

    Other point: Most sIngaporean aspire to own a car. It tough to get them to switch to public transport. In my opinion, if the car-sharing scheme is more wide spread and comprehensive in singapore, then probably people will see the demerit of car owning in singapore.

  3. It's even more difficult to own car as young driver (higher insurance if there is accident in 1st yr).

    Facing the threat from other drivers if young driver bumped their cars. Eg, getting extorted over the repair amount to prevent other drivers from reporting to the young driver insurance!

    It's emotional and financially exhausting to drive, and much more worse for 1st time driver.

    In summary, there's not much room to nurture one's skills without worrying about cost.



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