Buying A Motorcycle? Here Are 3 Reasons Why Safety Should Be Your #1 Priority
Owning a car in Singapore is an exorbitant affair. After accounting for a Honda HR-V’s basic price and various inevitable expenses involved with car ownership (e.g. insurance and maintenance), you will need to be earning at least at least S$5,300 per month to afford life on four wheels comfortably. That's S$766 more than the median gross monthly income of a typical employee in Singapore. Luckily, for those who find car ownership too much of a financial stretch, there is a cheaper alternative: motorbikes. S$20,000 is usually enough to buy a brand-new two-wheeler in Singapore. That said, a motorcycle’s initial purchasing price shouldn’t be your sole concern. A safer motorcycle – while more expensive in the short-term – can end up saving you more money in the long-term.
The Percentage Of Fatalities In Motorcycle-Related Collisions Is Higher Than Car Accidents
According to the Annual Vehicle Statistics 2020 published by the LTA, there are 140,783 motorcycles on Singapore's roads – roughly 4.5 times fewer than cars (precise number: 634,042). And yet, despite the large discrepancy in car versus motorcycle ownership numbers, statistics from the Singapore Police Force show that motorcyclists/pillion riders made up about 60% of traffic fatalities in the first half of 2020 alone! This paints a clear picture: you’re more likely to lose your life from a severe motorcycle accident compared to a car accident. One reason for this is that motorcycles provide less protection, for example you could be ejected from the vehicle in the absence of seatbelts.
In addition, motorcyclists are more vulnerable to road hazards like potholes, unexpected objects on the road, and pavement irregularities. A safer motorcycle will thus reduce the chance of you getting into an accident.
Premiums For More ‘Dangerous’ Motorcycles Will Cost You More Money
Purchasing motorcycle insurance is a must – it's illegal to take to the road without insurance, no matter your vehicle type. To be clear: the definition of ‘dangerous’ here is ‘fast’; that is, motorcycles that are built for speed. You'll have to fork out more premiums for motorcycles that have more horsepower. That’s because insurance companies know that if you buy a fast motorcycle (e.g. a sports bike), you’re likely going to ride it fast. And that significantly increases your risk of injuries/death. That’s why you can expect to pay an additional S$37.30 monthly by just ‘upgrading’ from a Class 2B bike to a Class 2 bike.
How Much Does Motorcycle Insurance Premium Cost In Singapore?
| Bike Class | Engine Size | Annual Insurance Cost/S$ | Monthly Cost/S$ |
|---|---|---|---|
| 2B | Up to 200cc | 409.23 | 34.10 |
| 2A | Up to 400cc | 488.65 | 40.70 |
| 2 | No limit | 856.85 | 71.40 |
You’ll Stand A Higher Chance Of Enjoying A Discount On Your Renewal Premium
Have you ever heard the term 'NCD'? It stands for 'No Claim Discount', which is basically what it sounds like: a discount on your motorcycle insurance premium when you don't claim for any mishaps on the road (also applicable to cars). Your NCD increases annually for each year you don’t make a claim under your policy – with a cap at 20%.
Opting for a safer motorcycle will reduce the chances of you getting into an accident and having to claim on your insurance. In turn, enabling you to enjoy a percentage discount on your premium. This is a big deal since it can easily save you hundreds of dollars yearly on your motorcycle insurance. Assuming that you don't claim on your insurance over 8 years, you can save S$1,242.43!
How Much Can You Save On Motorcycle Insurance?
| Number Of Claim-Free Year | NCD/% | Annual Premium Savings On Class 2 Bike Insurance/S$ |
|---|---|---|
| 1 | 10 | 85.685 |
| 2 | 15 | 128.5275 |
| 3 | 20 | 171.37 |
| 4 | 20 | 171.37 |
| 5 | 20 | 171.37 |
| 6 | 20 | 171.37 |
| 7 | 20 | 171.37 |
| 8 | 20 | 171.37 |
| Total | 1,242.43 |
Key Factors To Look For In A Safer Motorcycle
To choose a ‘safer’ motorcycle, you'll want to keep an eye out for these safety features including an anti-locking braking system, slip-resistant seat, and wide tires. Next, it may also be worth considering a brand’s reliability (e.g. BMW has a predicted failure rate of 40%, compared to Honda’s 12%). Whenever possible, stick to a class 2B bike since it has the smallest engine size – there’s less potential that you’ll be tempted to speed.
Better yet: opting for a class 2B motorcycle enables you to benefit from DirectAsia’s superbly-competitively-priced motorcycle insurance. Safe riders who own motorcycles between 201cc to 400cc will find that DirectAsia’s premiums cost around 10% cheaper than what's currently available on the market!
Motorcycle Insurance Promo Code in Singapore 2022
Get a Quote for your motorcycle insurance with DirectAsia and receive a S$50 CapitaVoucher (comprehensive plan) using promo code MCCOMP50 or a S$25 CapitaVoucher (TPO/TPFT plan) using promo code MCTP25. This motorcycle insurance promo code is valid while stocks last. Terms and conditions apply. Contact [email protected] for more details.
This article was written in collaboration with DirectAsia. While we are sponsored by them, we still review products and services with an objective lens and stay true to our mission— providing you with the best recommendations and advice to make smarter financial decisions.
Pooja is a Content Marketing Lead at ValueChampion Singapore. She is responsible for planning and executing sponsored content projects and building relationships with media partners. In addition, she evaluates financial products for consumers based on quantitative and qualitative analysis. Pooja holds degrees in Economics and Psychology from Rutgers University. Her prior work experience includes founding and leading a content marketing consultancy and working at eCommerce, AI, and B2B SaaS startups in Singapore. Pooja has contributed insights to Tech in Asia, Yahoo!, and many other publications. Connect with her on LinkedIn to collaborate on content.