Budget Direct to cover GST on motor policies as part of new promotion

Budget Direct to cover GST on motor policies as part of new promotion | Insurance Business Asia

Motor & Fleet

Budget Direct to cover GST on motor policies as part of new promotion

Initiative aims to ease the financial burden on Singaporean motorists

Motor & Fleet

By
Kenneth Araullo

In response to Singapore’s recent Goods and Services Tax (GST) increase from 7% to 9%, Budget Direct Insurance has launched an initiative to cover the full 9% GST on new car and motorcycle insurance policies purchased online.

This move is set to offer savings in the form of e-vouchers and aims to provide customers with added value and comes amidst growing concerns over the GST hike’s impact on consumers. Simon Birch, CEO of Budget Direct Insurance, said that the company’s decision to absorb the full GST amount is a direct response to these concerns, aiming to ease the financial burden on Singaporeans.

“Our full GST savings initiative is a commitment to providing unbeatable value and a tangible benefit for customers in these challenging times,” Birch said.

Budget Direct also previously announced the Pay Less or Pay Nothing Challenge, encouraging drivers to compare their current insurer’s renewal notice with a comprehensive car insurance quote from Budget Direct. If the renewal notice shows a cheaper premium for the same coverage level, Budget Direct will provide the insurance for free.

Birch emphasised the company’s focus on substantial savings, noting the potential for customers to save up to 55% on car insurance premiums compared to other providers.

“While many insurance companies offer promotions such as discounts, vouchers, and cashback, an independent study confirms that Budget Direct Insurance consistently provides better premiums,” Birch said.

An independent study by ValueChampion confirms Budget Direct Insurance’s position as offering Singapore’s most affordable comprehensive car insurance plans. The study found that Budget Direct’s premiums are up to 55% lower than the average rates of other insurers, regardless of the customer’s gender or No Claims Discounts (NCD).

This initiative by Budget Direct Insurance reflects a strategic move in the insurance sector, aiming to provide tangible benefits and significant savings to customers in a period marked by economic uncertainty.

What are your thoughts on this story? Please feel free to share your comments below.