In general, most young and inexperience drivers have to pay a higher premium and excess than other drivers. The premium extra could range in the range of 10% to 20% depending on the car model and insurer.
Who are the “young and inexperience drivers”?
Most companies will consider drivers as inexperience if they have less than 2 years of driving experience. However, the age to be considered as a young driver varies. For e.g AIG considers anyone below the age of 23, Liberty Insurance is 24 and AXA is 27.
A common excess for own damage claims is $500 and the driver may have to pay an additional $3,000 if he/she is a young and inexperience driver.
Automobile Association of Singapore(AA Singapore) had collaborated with Liberty Insurance to offer a lower premiums for this group of drivers.
Drivers who are interested in the Young and Inexperienced Drivers (YID) Scheme will undergo a mandatory, four-hour driving programme. Their driving behaviour will be tracked via an apps for 6 months.
In the example given in the ST article, a 20 year old male driver driving a 2016 Toyota Altis would usually pay about $4,125 with $3,000 excess. With this scheme, he will see a decrease in premium and excess to about $3,780 with $1,000 excess.
IMHO, a good way to save money on your Motor Insurance premium. At the same time, the apps can help to improve the driving habits.