Insurance Agency Singapore | Commercial Insurance and Personal Insurance

The latest COE prices have been released today and here we take a look at it:

                                          4th March 2015                              17th Feb 2015

Cat A                                 $ 61,410                                            $57,199

Cat B                                  $68,668                                           $66,751

Cat C                                  $56,501                                            $53,202

Cat D                                 $5,501                                               $5,800

Cat E                                  $70,500                                           $67,901

COE prices are on the rise again. There are several factors that resulted in the increase. Firstly, the last two COE bidding we have seen that prices have been dropping and fundamentals of economics will show that potential car buyers have started to take advantage  of price drop by entering the market during this window.

Secondly, the recent SG budget has announced that the revised  carbon emission-based vehicle schemes(CEVS) will kick-in in July 2015, and has urged many buyers to buy now rather than later (see straits times). CEVS scheme is meant to encourage buyers to purchase low carbon emission models and the new revised scheme is such that only cars with 135g or lower carbon emissions per km will be entitled to rebates ($5k-$30k), while those above 185g will have to incur a surcharge. This is compared to the previous 160g for rebates and 210g for surcharges. I am not sure which models qualify for rebates or surcharge before the change in scheme, but we can probably guess certain popular car models might end up incurring surcharge than rebates.

My previous analysis was based on simple understanding of economics, but there will be factors that will play a part in influencing the price. Maybe if you consider getting a hybrid car, or an electric one (not sure if there is such a model? but i do see car parks having certain lots for electric cars) you won’t be too bothered by the scheme. But no doubt this change has urged buyers to take action now, and that maybe my ideal wait for $50k and below COE price (CAT A) might not come true eventually. I have heard from a friend that his recent purchased of Toyota Estima (parallel import) cost around $150k, which was a drop compared to 2014 prices. Prices may not drop significantly now but they sure are a bit lower than before.

Time to head to the showroom and enquire more.  

 

Data from OneMotoring, LTA

The latest result of COE prices just before the Chinese New Year period has been released today at 4pm. I have been anticipating the drop in COE ever since the announcement of COE quota  increase for Feb – Apr.  Lets take a look at the latest results:

                                          17th Feb 2015                              4th Feb 2015

Cat A                                 $57,199                                             $62,002

Cat B                                  $66,751                                            $70,890

Cat C                                  $53,202                                            $52,101

Cat D                                 $5,800                                              $5,504

Cat E                                  $67,901                                            $71,921

Huat Ah! Cat A, B and E (open) has dropped while commercial vehicles (Cat C) and motorcycle (Cat D) has increased further. So what will happen going forward to March and April? The increase in quota has helped push the price further down, it has at least given potential car owners a sigh of relief especially those whose car COE is expiring in 2015 or 2016 (the years when COE is approx. $10k)

The cost of owning a car might prove to be lower in the near future, given the price of petrol decreasing in the past few months. While many speculate oil prices will shoot back up soon, I  have actually done some research that shows oil price might drop even further (will blog on an article soon). Nonetheless, if you are looking to buy a car soon, be optimistic! I strongly feel this year or next will be the best chance to buy before COE crazily goes back up again. Remember the basic speculation technique? Buy low Sell High. To reiterate, I would be looking to enter at $50k Cat A or $60k Cat B.

Probably its time to go window shopping at Leng Kee showrooms soon.

Data from One Motoring

The COE for February 15 has been released on the 04-02-15, it may be a bit late to blog about it but nonetheless lets just review on the latest prices. As I have mentioned in my earlier post on the increase of quota from Feb – Apr 2015, the prices for January and February 2015 are as followed:

                                  Feb 15                                         Jan15

Cat A                                 $62,002                                    $65,001

Cat B                                  $70, 890                                   $76,889

Cat C                                  $52,101                                      $55,011

Cat D                                 $5,504                                       $4,403

Cat E                                  $71,921                                      $75,200

The increase in supply definitely help pushed down the prices by a bit, with Cat B vehicles dropping the most at approximately $6k, with the exception of an increment for Cat D (Motor Cycle). Is this good enough? As the increase in quota is over a 3 month period, we should be able to guess how much more it will drop/increase come the 2nd bidding for February. In simple economics term (based on the Demand and Supply Curve), as prices drop, demand will increase such that probably more people will look into buying/changing cars in the next bidding exercise, so that might start to push the price higher again.

As I mentioned previously, buying a car nowadays is like speculating in share prices. Using the basic financial strategy of  ‘Buy Low Sell High’ it’s pretty much about guessing when is the right time to enter. As we know CAT B has once soared to the high $90k, this price right now definitely much less expensive.

In my opinion, if prices for CAT A can drop to $50k and CATB $60k, i think it is consider a good price to enter. Some friends I have talked to are sceptical where they don’t believe it will drop to that $50k range, which they say ‘at most drop few k only’

Let’s just hope for the best

Data from One Motoring

A couple of close friends asked me sometime last week if my agency does deal with life insurance product. I like to clarify that Credence Insurance Agency ONLY deals with General Insurance. The reason is simply because of the history of this start up. I was previously working for an SME and was involved in a lot of HR matters, which includes the insurance requirements needed by an SME operating in Singapore. Once worked as a client of general insurance, I understand what clients are seeking in terms of their insurance needs  and how an in-depth of insurance knowledge is important to them. Hence I decided to venture my career in this aspect.

So these friends of mine did asked if I ever will venture into life insurance, with some even asking me to take up the life insurance exams first. Sorry to say I won’t be dealing with life insurance products because I prefer to focus on GI so that I can dedicate my time and effort in servicing my clients.

However, for those of you who are looking at life insurance products, you can kindly contact my reservist army friend, Jeremy Ng @ 9380 6098 or jeremyng@pruadviser.com.sg He represents Prudential and given the good character of his, I strongly recommend him to advise you on life insurance.

PS: I do not earn any commission for referring him to clients, but simply refer him in this blog because having worked with him during our reservist for the last 5 years, I understand and appreciate his kind and good nature  and believes he will be there to help you just like how he has helped his men in our platoon.

If you read The New Paper today (15 Jan 2015 page 4), there was a section that talks about the increase of COE for the coming months of February – April 2015.  I still remember the last time when COE prices were around the $10k range, it was during the year 2005-2006. 10 years later, most of these vehicles sold during those period are due  to expire. After doing a check on the January 2015 COE price on One Motoring , there will be at least double the no. of COEs for Cat A and Cat B vehicle.

Given that the price of the current Jan 15 COE is $66k+ (for CAT A), will we be able to see the COE to drop at least half? Well I guess that is what everyone hopes for. But then again if we apply the fundamentals of economics, price will still be depends on the Demand and Supply. I don’t remember we have a 5 million population back in 2005-2006, hence while the supply of COEs has at least doubled, the population of Singapore has doubled too.

Well I guess for those who are looking to buy or change their vehicles, probably its best to head down to any car dealer and start enquiring now. My view of an ideal and practical price for COE will be less than $40k for Cat A vehicle. Of course I would hope it will do down o $10k, but then buying a car in Singapore require some speculation skills. We won’t know for sure how much the price can drop, but before it starts rising back up again its better to get it than to regret it. Hence as long as the price drops to a comfortable range that you can afford, my advise is to buy and don’t hesitate.

Oh and if you decides to get a new one, you will need motor insurance quotes right? Well just contact me and I be happy to provide you quotations from my two partners, China Taiping and Tokio Marine. No obligation guys and don’t be shy to ask. Because if you don’t, you will never know which insurer will provide you the best coverage and premium for that particular model of you want.

While the official work day for 2015 starts on 2^nd January, most of the local workforce people are still on a holiday mood. Well I would know that because of the traffic while on my way to work. Instead, 5^th of January felt more like the start of the work year.

I left my house at 6.45am and the roads were already full of vehicles. It definitely wasn’t nice to drive in this road condition, having to be more alert especially so early in the morning. The KJE was also quite pack and before I got onto the highway, I could already see the slow moving traffic. To my surprise, it wasn’t because of the large number of cars that suddenly appeared on the highway, it was actually caused by two road accidents which were just within 500m between them.

Both accidents were caused by chain collision. The first one was about five cars hitting consecutively on the front and back, while the second accident involved about three cars. I told myself never to drive on the fast/takeover lane during heavy traffic, which there is a higher chance of getting yourself in such accident if you are not focused. On the 6^th of January, another similar accident happened on the same highway, this time involving another five to six cars. And on my way home at around 6.30pm, Brickland road had another accident where a car had hit a traffic lamp post at the junction.

So four accidents in two days, I feel driving on the road these days in 2015 seems more dangerous than ever. I decided to write this post to help those who are puzzled on what to do should they be involved in an accident.

Here are some of the FAQ:

1. What to do when you are involved in a car accident?

1. Stop your vehicle at the scene of the accident
2. Check if the people involved in the accident are injured. If so dial 995 for ambulance.
3. Take a photo of the accident if possible
4. Take down the registration numbers and insurance companies of all vehicles involved in the accident.
5. Take down the names, NRIC Numbers, addresses and telephone numbers of the drivers, passengers, injured pedestrians and witnesses.
6. Give your particulars as and when required.
7. Call your insurer’s hotline for a tow truck or for further advice on the accident whenever necessary.

2. Do I need to make a report?

Yes. All accidents must be reported to your insurer within the next 24 hours, or by the next working day if it falls during a weekend or PH.

3. What if the accident is minor with not much visible damage or when an amicable settlement could be reached with the parties involved, do I still need to go through all the hassle and make a report?

The answer is still YES. In this case it will be just like calling the report centre and you ‘open’ and ‘close’ the case for your accident. Insurers will prefer all accident cases to be reported to them ASAP, so as to avoid any complication should one party decide to file for claim later. Failure to report your accident will result you to be in a position where your claims could be prejudiced or even rejected by insurers.

4. So how do I make a report? Who should I call?

Check your car insurance policy, usually there will be a hotline indicated or telephone numbers of those authorized workshop.

For more information on motor insurance, kindly refer to my product page listed under personal insurance. Or simply drop me an email to enquire.

While you need to make sure you don’t cause accidents, you would also probably need to ‘avoid’ accident by driving smart. Anticipation and vision will play an important part for you to avoid accidents. Even though you know it’s not your fault, still it is too troublesome to go through the process of claims and even having to send your car to workshop for repair.

So remember to drive safe and stay safe

References:

• Source:  1. Singapore Legal Advice
• Source:  11. One Motoring

Having started as an individual agent in the general insurance trade (Sorry, we do not deal with life insurance products.), my clientele at that moment comes from my circle of friends, or through referrals. I was once asked by a client if I was working under any insurance company because technically I don’t work under insurer. I told him I was just an individual agent (which sounded like a freelancer to him). Instead, he advised me by quoting a Chinese saying “跑了和尚,跑不了庙”, which simply means (in layman terms) the temple is there to stay and operate even if the monk decides to leave. He explained that if I work as an individual agent, clients may be worried that there might come a day when the agent disappears from the scene and is unable to service his clients’ insurance needs.  In other words, without a company presence, they do not know if they can trust a sole agent. Without further ado, I understood what he meant and hence Credence Insurance Agency was set up.

I was referred to join China Taiping Insurance as an insurance partner. China Taiping Insurance has a long history that dated back to 1938. Formerly known as China Insurance Co. ltd, ever since the company merged with The Tai Ping Insurance Co. Ltd in 2002, the insurance company decided to consolidate their operations and named themselves China Taiping Insurance Co. ltd in 2009. I was told China Taiping are particularly strong in their commercial business insurance, namely work injury compensation, foreign worker medical, public liability etc. While different insurer has different risk appetite, not every insurer is interested to insure in areas where they are not familiar with. However China Taiping has the typical culture of how Chinese businessman do business, which they are open for negotiation in seemingly complicated deals. This is one aspect which I admire most as it is crucial for insurer to insure clients in all kinds of risks. Well, if there is no risk in this world, why would anybody want to buy insurance products? The support from them is tremendous and it allows me to help clients in complex and difficult situation where insurance protection is required. Therefore, I am proud to have China Taiping Insurance as my principal insurer. While every agency/agent is able to represent three different insurers, I am also glad to have joined Tokio Marine, where they are ranked Top 10 in the general insurance trade. Tokio Marine’s products are priced very competitively which also allow us to have a competitive advantage to offer clients with affordable premium. I have yet to select a third insurer as my partner, but will definitely be looking for one which can compliment the other two.

With such strong support, I will be able to meet my clients with confidence and look forward to a bright future with Credence Insurance Agency.

Happy new year to everyone in Singapore! 2014 may have been good or bad for us, but no matter what happened, it will teach us important lessons so that we can make 2015 a better one.

Credence Insurance Agency (General Insurance) will officially operate in this new year. Through this blog, I hope to be able to bring you a different platform in sourcing for insurance needs, as well as to update news on insurance related articles, accidents and in depth knowledge of insurance products.

While insurance subject may be boring to some, I will also talk about my personal experience in life, business ventures and golf.

Look forward to be able to help you in all your insurance needs.

Have a blessed year ahead!