Insurance Agency Singapore | Commercial Insurance and Personal Insurance

For many customers, finding the right car insurance policy can be quite frustrating due to the complexities of pricing, which is complicated further by varying state coverage requirements. In the end, coverage gets quite expensive.

Licensed insurance agents know how the average consumer can lower their car insurance premiums. So, in an attempt to bring transparency to the world of car insurance, here are some data-backed savings tips according to experienced insurance agents:

1. Don’t Allow Your Insurance Coverage to Lapse

Rates drop 7.7 percent on average, even after being insured for just a year. The discount that most insurance companies provide for maintaining continuous coverage will depend on the amount of liability coverage on the policy you have. The higher the limit of liability, the better the prior insurance discount is likely to be.

2. Bundling

Bundle your car insurance policy with your homeowner’s insurance to potentially save up to $110 annually or bundle your renter’s insurance with your car insurance to save up to $72 annually.

3. Do Proper Research

Take several minutes to learn about the companies, minimum coverage requirements and other factors that apply to your state.

4. Get Ahead of the Game

You should buy your car insurance policy not less than 10 days before you need it activated if you wish to get a better rate. This is particularly beneficial if you know that the policy is up for renewal and you wish to switch to a different provider.

By Will Robins

See Full Story at www.feedster.com

Comprehensive insurance covers events different than collisions. For this policy, these are the most important factors:

• The area where the policyholder lives. Insurance companies are interested to know where exactly the driver lives. The company will check the frequency of extreme weather phenomena. Other factors like the number of riots, vandalized cars or stolen vehicles are also analyzed.
• The value of the car. Naturally, the car’s worth will influence the insurance costs. This policy is recommended for new, valuable cars. Dropping coverage or older cars is something usual and quite recommended, considering the costs to keep this policy active.
• Tracking devices. Since this policy also covers theft, adding tracking devices will lower the costs. It may be a long-term investment, but the premiums will be lowered after installing the devices.
• Deductibles. Just like collision car insurance, comprehensive coverage is also subject to deductibles. The insurance company will not intervene unless the driver pays the deductible mentioned in the contract. A high deductible will make the insurance cheaper.

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“Car insurance policies more often than not default to the retail value in the dealer’s handbook. This is often simply referred to as the ‘book’ value. In the case of new cars they tend to ensure at the manufacturer’s recommended list price,” he explains. “If you take into account that a new car typically drops significantly in value the minute you drive it off the showroom floor, it follows that many cars will be insured for values higher than their used car market value.”

He gives an example: “If you buy a brand-new car for R300 000 and then needed to replace it six months later with an equivalent second-hand model, it would cost, for instance, R250 000. If your goal is just to replace it with an equivalent car, the premiums you have been paying on that additional R50 000 have been unnecessary. But if you prefer to replace it with a brand-new car, you might not regret the additional premiums.”

Over-insurance is not just limited to new vehicles. Morgan says that getWorth’s data has identified numerous instances of older vehicles where the book value is higher than the actual market value of the car. The Santam survey showed that 29% of owners were willing to receive the market value of their stolen car and 23% said they wanted a similar replacement vehicle.

Morgan says that your insurance should take in to account your particular circumstances. He gives another example: “Let’s say you took out vehicle finance on a new car, with zero deposit. There is almost certainly a period – sometimes up to three or four years – when the insured value of your car is less than the outstanding amount of the loan. If your car is stolen or written off, the insurer will pay out the insured value – normally the ‘book’ value – and you will have a shortfall that you need to repay to your bank. It can put you in a difficult position if you don’t have the cash.”

Many insurers offer an additional type of insurance called gap cover or credit shortfall insurance that will pay out the shortfall between the car’s value and the outstanding car loan amount. This can be a useful cover for anyone who is concerned about a loan shortfall in the event of a total loss.

WHAT SHOULD YOU CHOOSE?

Most insurance companies recommend that you insure your car for its retail value as this is the closest amount to its replacement value. They typically use the retail ‘book’ value. Morgan says that it is possible to obtain cover from an insurer at a lower value than the ‘book’ value. If you are well informed about the actual market value or replacement value of your car, you can speak to your insurer about reducing your maximum cover. However, the premiums generally won’t reduce by the same proportion and it may not be worth the trouble. Morgan advises “A good practical step is to ensure that your insurance company reviews your vehicle value and premiums regularly, so that at least your premiums reduce as your vehicle depreciates.”

By CAIRA-LEE

See Full Story at www.womenonwheels.co.za