Demystifying expat car insurance

Insurance, whether for house, health, business or car is often a nightmare for newly arrived expats, especially if they can’t yet get by in the local language.

The positive on this subject is car insurance, the requisites for which don’t seem to differ much from country to country. Prices, however, are another matter and range from cheap through affordable to rates which might persuade all but the very rich to use the subway. For those determined to drive, finding the best deal can depend on your record as a driver – just as it did in your home country.

If you’ve always been a careful driver blessed with enough road-smart to avoid those who think they’re on the dodgems, this will stand you in good stead as you’ll have an unblemished record as regards claims. Premiums will be lower if you’ve a pristine record, but you should remember certain makes of car attract higher rates than others. Perhaps it’s time to give up your dreams of a Porsche as a retirement present to yourself and go for boring, small and safe.

Most overseas locations will take account of a no-claims discount on your home-country car insurance as proof you’re not a racing car addict. For example, in Singapore the best NCD is a maximum of 50 per cent, representing five years of claims-free, safe motoring. It’s even possible you may be able to transfer your discount to your new insurer, so remember to ask the question.

Another way to keep your premium down is to increase your excess. This popular means of getting a lower premium is a good deal for careful drivers, but not so great for expats in countries where the cost of getting your car fixed following an accident is far, far less than at home. Also, if your insurance foots your bill, your premium will rise, probably by more than it would have cost you to get a local garage to do the repairs.

The most important mistake you’ll make if you’re on a budget is to take the cheapest possible quote available in your new location. It’s an understandable mistake, but cheap is as cheap gets, especially when insurance is being bought. Poor customer service, inadequate coverage and even attempts to avoid paying claims are pretty normal nowadays, with motorists advised that best value is more important than lowest price.