Insurance Agency Singapore | Commercial Insurance and Personal Insurance

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

If you use your car for business purposes or if you have business vehicles driven by you or other vehicles, you need to get commercial car insurance.

But commercial car insurance could get expensive as you are covered with liability policies that could cost as much as millions of dollars. To help you save costs, we’ll look at six ways by which you can get affordable insurance for your business cars.

1. Shop around before settling for an insurance company:

Take your time before settling for an insurance company. Don’t be fooled by ads that tell you a company provides the lowest commercial car insurance policies. Don’t take everything at face value. You can get your commercial auto insurance at a lower price than you think. Make your enquiries before picking an insurance company. A lot of businesses tend to go for one of the large insurance companies. But they can save much more money by opting for regional and local car insurance providers.

2. Check for discounts:

You will find discounts on commercial car insurance if you know where to look for them. You can get these discounts by ensuring multiple vehicles with one policy, opting to receive documents online, paying yearly premiums at once, bundling your commercial car insurance with other policies, owning a vehicle with good anti-theft and safety features, becoming a member of an affiliate group or professional organization etc. Ask insurance providers for the kind of discounts that they provide.

3. Have a good credit score:

Your credit score affects your commercial car insurance quote. If you pay your bills on time, you will receive a lower commercial car insurance quote. Improve your credit, and you will get lower premiums. Examine your credit reports periodically to see how well you are doing.

4. Consider insurance costs before buying a business vehicle:

Commercial Insurance costs vary for each vehicle. You could check online for the average insurance cost of a vehicle before you purchase it for business purposes. This way, you get to save a lot of money in the long run. Vehicles that are deemed safer and less accident prone tend to have lower insurance costs than other vehicles.

See Full Story at www.finsmes.com