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Facebook forces Admiral to pull plan to price car insurance based on posts

22 November 2016 By admin Leave a Comment

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Admiral has been forced to scrap plans to use Facebook posts to analyse the personalities of car owners and set the price of their insurance after the social media company said the scheme breached its privacy rules.

In an embarrassing U-turn, the insurance firm pulled the product less than two hours before it was due to officially launch on Wednesday. The product, called firstcarquote, was launched later with “reduced functionality”: users can log in to the product with Facebook but it will no longer analyse their data.

Facebook said protecting the privacy of its users was of the “utmost importance” and that it had clear guidelines about how information obtained from the site should be used.

Section 3.15 of Facebook’s platform policy states that the site’s data should not be used to “make decisions about eligibility, including whether to approve or reject an application or how much interest to charge on a loan”.

Admiral and Facebook remain in talks about trying to revive the product, with industry insiders arguing about who was to blame for the last-minute climbdown. Facebook is understood to have known about firstcarquote for months and the product has been operational on the internet for weeks in a test form.

Privacy campaigners welcomed Admiral’s reversal but said that it was only the start of other companies trying to use personal data in a similar way.

Simon Morrissey, head of data and privacy at law firm Lewis Silkin, said: “This is the tip of a very large iceberg that consumers and businesses are increasingly going to encounter. The challenge with these sorts of solutions is that users may find it increasingly difficult to avoid opting in as the financial disadvantage in doing so becomes so significant that users have no other option but to hand over access to their data.”

By Graham Ruddick

See full story at The Guardian

4 tips on saving your Car Insurance Costs in Singapore

20 September 2016 By admin Leave a Comment

Car Insurance

If left unchecked the costs of getting car insurance in Singapore can get quite expensive, and with coverage rates constantly rising as time goes on, it seems that prices won’t be getting any cheaper anytime soon.

With auto insurance being mandatory in Singapore, having a vehicle at all may seem like an unreasonably expensive goal to some.

Fortunately, there are workarounds to these price tags that can help us get cheap car insurance. Let’s have a look at some of the most common ways to lower your car insurance costs in Singapore.

Drive safely

First and foremost, drive safely. This may sound like a no-brainer; however, we can’t overstate how important this tip actually is. Driving safely can seriously cut down on most of the motor insurance premium.

By actively avoiding accidents, not only are you going to get better rates thanks to a clean driving record, as well as save on the excess fees typically charged when filing a claim, but you’ll also save big by becoming eligible to a variety of discounts.

For instance, by having a claim free record with your insurance company, you are entitled to a No Claims Discount of 10% for every year with no claim on your insurer, up to a maximum of 50% for the full 5 years of holding a good record.

Additionally, if you haven’t had any accidents in the past 3 years, Traffic Police of Singapore will award you with a Certificate of Merit, which translates into a 5% Safe Driver’s discount on the premium.

Just by taking into account these two basic discounts, you can easily save thousands on insurance premiums every year, not to mention your potential savings earned by not raising your insurance rate with an accident.

Skip coverage that you don’t need

Obviously, if you’re driving a luxury vehicle or an expensive sports car, you might not want to skip on comprehensive collision coverage, since getting in an accident could potentially cost thousands on repair bills (or much more if you have to replace the totalled vehicle).

However, if your vehicle is old and expendable, or if you’re simply planning on buying a new car sometime soon, getting more basic third party only coverage may be one of your best bets to getting cheap car insurance rates.

For example, if you bought a second hand 2002 Kia for $5,500, getting third party coverage for $800 may sound a lot better than getting a $2,800 plan, despite the latter being for full coverage, since the price of the premium could easily end up overshadowing the car’s face value.

Also, keep in mind that some additional services and options such as unlimited windscreen coverage and freedom of choice when it comes to repair shops might be end up being an unnecessary luxury that you could easily skip for cheaper options.

Keep your vehicle mod free

Modifying your vehicle in any way is usually a big no-no when comes to car insurance. Although some insurers might overlook LTA approved mods, others might be quick to judge, setting more expensive rates for you vehicle. So, before even considering the option, always ask us first.

See full story at www.hlas.com.sg

7 surprising things that impact how much you pay for car insurance

8 September 2016 By admin Leave a Comment

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When searching for an auto insurance policy, there are things we expect will impact our rates: demographic details like age, home address, even credit score. But in the world of car insurance, there are still surprises, believe it or not. Below, you’ll find the top seven most surprising things that can impact your car insurance rates, taken straight from a comprehensive research report on the state of the auto insurance industry compiled by The Zebra.

1. Your history of car insurance — or lack thereof — can mean big-dollar differences on your rate

If you’ve had a long history of insurance coverage, and if you’ve chosen policies with better coverage, you’ll pay less for your auto insurance. For example, in the case that you cause a collision that results in injury to another person, but you have higher coverage limits, that leads insurance companies to believe that you’re a more responsible person than someone else with a history of choosing the lowest possible coverage.

So what level of coverage do you need in order to see savings? The Zebra’s research shows that people with a five-year history of carrying $100,000 of bodily injury coverage per person and $300,000 per collision (often designated as “BI 100/300” in insurance documents) can expect to pay an average of $184 less a year for the same new insurance policy as someone with no history of insurance coverage.

Further, if you have any lapse in auto insurance coverage (even a few days), that can also cost you big time, as it indicates high-risk behavior to insurers.

Note: The only exception is for residents of California, which is the only state that doesn’t consider insurance history when determining average annual auto insurance premiums.

2. Insurance companies care why you drive

Do you drive solely to get to and from work? Do you use your car for business or to haul stuff around your farm? When you apply for your car insurance policy, the agent will ask how you use your vehicle, and your answer could have a big impact on your insurance rate. The Zebra found that prices can vary up to 18% depending on how a person uses their vehicle, even when every other detail stays the same.

People who use their vehicles on a farm will pay the least, while those who use their cars for business will pay the most for car insurance — up to $227 more each year. You can’t lie about what you use your car for, lest you risk a canceled policy, but you can make sure you tell the agent how you use your car when shopping for a policy to ensure you get the best rate (especially if you’re insuring a farm vehicle!).

By Julia

See full story at www.marketwatch.com

3 ways you can lose your car insurance that have nothing to do with your driving

28 June 2016 By admin Leave a Comment

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Finding yourself stuck without auto insurance coverage is against the law (if you’re still driving) and potentially financially ruinous if you are involved in a crash. Plus, when you do find an insurance company, the gap in your coverage will almost always mean a higher premium. So avail yourself of the following scenarios and do your research. And it’s never a bad idea to do a little insurance shopping so you have a backup in mind, just in case.

1. Health issues

Several states have laws on the books stating that car insurance companies can drop customers who develop health problems that could make driving unsafe. For instance, epilepsy, a condition that causes seizures, is a medical issue for which many states permit insurers to drop customers, unless they can prove the condition won’t affect their driving. But luckily it isn’t a straight line from diagnosis to loss of insurance.

2. Making multiple claims in a short period

Even if you’re the victim of crime or experience an extreme weather event and need to make a claim, it can spell trouble for your insurance policy. It might not seem fair, but the auto insurance industry is built on calculating risk, and making too many claims is a good way to up your chances of having your policy canceled or not renewed. Richardson says that claims, just like tickets and crashes, stay on your driving record for three years. Filing more than one claim a year could cause your insurance company to drop you. So, say your vehicle is vandalized a few times, or stolen, or your vehicle is carried away by a flood, you’ll make a claim with your insurer, and rightfully so, but making too many claims (of any type) can make you too expensive of a customer to keep around.

3. Your auto insurance company shuts down in your area

This scenario is a definite case of “it’s not you, it’s me.” Businesses fail all the time, and auto insurance companies are not immune. Even subsidiaries of national brands can shutter, leaving part (or all) of your insurance portfolio up in the air. Fortunately, there are steps you can take to reduce the chance of signing on with an insurer that is more likely to fail.

By Julia
Eddington, Credit.com

See full story at www.marketwatch.com

Understand These 7 Terms Before You Shop For Car Insurance

23 June 2016 By admin Leave a Comment

car insurance

Next to your home and your office, your car is probably where you spend the greatest amount of time—and it’s likely one of the things you pour the most money into.

Between the costs of routine maintenance, repairs and trips to the pump (is it time to buy an electric car yet?), being a car owner requires an investment—not the least of which is the auto insurance you’re required to buy.

But not all policies are created equal—and, put simply, “Consumers need to understand the terminology of car insurance to shop for and compare policies and coverage,” says Jeff Blyskal, auto insurance expert and senior editor at Consumer Reports.

Although we can’t choose your auto insurance for you, we can help you learn some of the lingo you’ll come across during your search, in hopes that you’ll be able to understand what types of coverage exist and make the most-informed decision.

See full story at www.forbes.com

Tips for your Car Insurance in Singapore

23 November 2015 By admin Leave a Comment

Driving and owning a car in Singapore can be a costly undertaking. It is not only the car and its license that is expensive, but also the car insurance can weigh heavy on one’s finances. No matter how much money one has, there isn’t any chance that one can lower the government-imposed charges for the usage of the car. Therefore, it is even more important that one finds a beneficial deal for the car insurance.

1. Drive safely

If one met a car accident, the rate one has to pay for its car insurance monthly or yearly is instantly increased. However, If you are driving safely around Singapore over a long period of time, your car insurance will remain the same or even shrink slightly.

2. No Claim Discount (NCD)

Many car insurances offer a NCD which allows a 10% discount for every year in which you haven’t claimed anything. Let’s say you have only a minor dent in the car, you may want to consider not claiming it from your insurance, as you can possibly save more with the discount. The NCD can reach a maximum discount of 50%, with which one can safe potentially thousands of hard-earned dollars. Thus, It is important to think twice before making any claims.

3. Being a Safe Driver

This also means being a law-obeying driver. Fancy and fast cars are extremely attractive in Singapore, but even if you have one of those race cars, you are still subject to the speed limits. If you have a clean license over an extended period of time, you can earn a further discount instead of another ticket. After three years driving without committing a traffic offence, you can even get the Certificate of Merit (COM), which brings you a further 5% discount on top of NCD.

4. Get the right insurance policy

When you are arranging a new car insurance policy. Often, pay attention to what you actually commit. Many policies often include unnecessary points. Go through them and use your common sense. It can be that your car insurance also covers you for something that you are already covered for. Being covered twice for the same cause will not bring you double money and doesn’t mean you can claim it twice.

5. Young drivers and insure driver

Inexperienced drivers has the tendency to crash a car more often than older and more experienced drivers which thus, results in a higher insurance policy for younger drivers in general. Even if you’re driving perfectly, you are paying more by default.

However, one can insure the car on another person or include a driver with more experience into the policy. Mixing a high risk and a low risk profile will in most cases reduce the insurance. Therefore, one should check who is a low risk profile. Statistically older or female drivers will fall in this category. Listing such as the main driver in one’s car insurance policy, can save some money.

6. Car engine

Each car is categorized with a certain amount of insurance money that the owner has to pay. It is generally known that the bigger the engine of the car, the higher is this amount. The reasoning of the car insurance companies is the higher risk. Statistically cars with a higher engine are more likely to crash. For obvious reasons, insurances are all about statistics. So if you can beat the statistic, you will save some money.

7. Modified Car

Most people will not modify their car, however there are car enthusiasts that do. A simple engine tweak or any other car modification can quickly become very expensive. What seems like a body shop bargain, can become a killer within the insurance policy. Therefore, it is worthwhile to check with your car insurance whether an upgrade is necessary.

Of course one could say that the insurance company doesn’t have to know. This is however an extremely risky undertaking. In case you do have an accident with your modified car and you haven’t notified your insurance about it, you can lose your cover immediately. Even if you haven’t caused the accident, the insurance company can refuse to pay anything. Hence, one shouldn’t modify outside the regulations of the Land Transport Authority (LTA) and definitely not keep it a secret. Handling your car insurance correctly doesn’t take too long and can award you with some extra cash.

By Peter Schimke

See Full Story at MoneyDigest

6 WAYS TO LOWER YOUR CAR INSURANCE

27 October 2015 By Alex Tan Leave a Comment

Image via Flickr user Online Banking

1. List an older or female driver

Insurers may have a mind-set that older drivers have more experience and will drive safer when driving on the road. It is better to list your wife or an older family member as the main driver. There is no guarantee but in general, if the main driver is 40-50 years old it is believed that the premium will be lower. Besides this, the premium will also be slightly lower for female drivers as these people are believed to be safer drivers on road.

2. Compare and contrast

While different insurance company have their own quotations of premiums for car insurance, it is also known that in general, the premiums depend on your age, claims history, model of vehicle etc. Thus, it is important to do a comparison and get the best premium for your car.

For example, say you’re 30 years old, and you wrapped a Honda around a lamp post 10 years ago.

Company X might decide that older is wiser, and what happened 10 years ago is trivial. They’ll raise your premiums for the accident, but not by much. But company Y might decide “Once a speed freak, always a speed freak”, and file your premiums under the Beyond Insane price band.

On top of that, insurers have sales quotas. Premiums go down when they’re trying to recruit more customers, so those are the best times to buy.

3. Be choosy about the coverage

It is important to be choosy when getting the right coverage for your car. There will be extras that your insurers may ask if you are interested in taking and these extras are windscreen damage, damage arising from riot or strike and floor or windstorm etc.

You will have to pay for these extra coverage every month. However, your windscreen will only crack once like after 5 years or more of driving. And the replacement cost compared to the extra you pay every month, is it worth it? Thus, please remember the premium costs over a few years might greatly exceed one-off repair cost.

4. Always check with your insurer before modifying your car

Always remember to consult your insurer before modifying your car. It is unpredictable when it comes to driving and met an accident on the road. Because if you ever get into an accident, and they found out about it, they will have the rights to scratch off your policy immediately. And all that money you spent on premiums will all be gone in vain.

As known, Insurers in Singapore are always strict: Even minor cosmetic tweaks, like switching to sports rims or using a body kit, might count as “modification”. Most insurers insist anything outside a manufacturer’s “defined specifications” is a mod. Note that the LTA (Land Transport Authority) tolerates changes that’s within manufacturer recommendations, not just “defined specifications”. As such, changes to your car can be LTA compliant, but still result in policy termination.

5. Decline preferred workshop options

All insurers have a list of authorized and agent workshops. When you want to make a claim, these are the only ones you can go to. If you want other options, you need the insurer to include preferred workshops. That’ll let you use a workshop “off the list”, and still get your claim. But this option means higher premiums, and higher excess (the amount you’re liable to pay in an accident).

If you insist on a particular workshop, ask the mechanics for the insurers they work with. Pick the lowest premiums amongst that list of insurers. It’s usually cheaper than paying for preferred workshop options.

6. Bargain the excess

The excess is the amount you’re liable to pay in an accident. Depending on your driving record, it’s open to negotiation. Most insurers will lower your premiums if you accept higher excess. In other words, you’ll pay less per month, but more during an accident. Overall, this favours the motorist: Most people pay much more for premiums (every month) than for accident repairs (once every few years). Most insurance agents will don’t raise the option, so ask for it. Assuming you’re a decent driver, this could save you big sums in the long run.

By Ryan Ong

See Full Story at MoneySmart

It’s over for days of cheap car insurance premiums

27 October 2015 By Digital Curator Leave a Comment

Image via Flickr user Ben

Based on its latest British insurance premium index, the average “shoparound” quote for a motor insurance policy in Q2 2015 was £549.46, which represents a 5.2% rise over Q1.

AA expects premiums to continue to rise for the rest of 2015 due to an increasing number of claims and the increase in the insurance premium tax (IPT) from 6% to 9.5% announced in the July budget statement , which takes affect from November.

Credit rating agency Fitch said the increase was “timid relief” after three years of decline.

It said: “After three years of steep decline, and more recently, stagnation in UK motor premiums, there seems to be some signs of timid relief on the horizon for motor insurers’ technical profitability.”

Fitch said the AA’s findings were in line with its expectations. It changed the outlook for the sector from negative to stable in December.

“Strong growth in motor premiums is finally correcting a period of inadequate pricing, which has compressed margins in the industry for over 10 years.

But it added: “We do not, however, see any signs of a return to a hard market. Fierce competition is likely to persist during the rest of 2015, especially from the more agile and higher margin Gibraltar-based insurance companies, such as Admiral and Hastings.

Fitch said profitability in the UK non-life sector would remain weak overall due to thin underwriting profit margins and the increase in IPT, which would lead to further increase in premiums.

“Underwriting margins are under pressure due to high fraud and claims costs and are still too thin to generate positive technical results.

“The July budget brought further bad news. Given that insurers are already operating on very thin margins, any additional costs are highly likely to be passed on to the customer through further premium increases.”

by Cintia Cheong

See Full Story at theactuary.com

Types of Car Insurance in Singapore

22 October 2015 By Alex Tan Leave a Comment

Image via Flickr user Cecilia Frankland

1. Third Party Only

In an accident, Third Party Only (TPO) insurance covers the other guy. In other words, the insurance will only cover your legal liability coverage for any third party injury or property damage. If you have TPO insurance, it’s only paid out once they prove it’s your fault. TPO is also the cheapest type of insurance plan.

2. Third Party, Fire, and Theft

This insurance plan works both ways. It doesn’t just cover the third party, it also covers your own damages or loss to your vehicle caused directly by fire or theft including your legal liability for any third party’s injury or property damage.

3. Comprehensive Coverage

Comprehensive coverage has the widest coverage. This insurance plan is the most common one in Singapore, not least because many car loans require it. This plan covers you for death or injury to other parties, damage to other parties’ property, fire, theft, accidents, and medical costs arising from the accident. This also means that it will cover your loss or damage to your vehicle and your legal liability to third party’s injury and property damage.

The three kinds of coverage also come with extras, which will add up to your premiums but with even more coverage for your insurance.

Below are the extras that you could add to your coverage:

· Windscreen damage

· Damage arising from riot, strike, or civil commotion

· Damage from flood or windstorm

· Liability of passengers for acts of negligence

· Personal accident benefits for passengers

By Shubhreet Kaur

See Full Story at MoneySmart

Be more cautious with discounted offers on car insurance

22 October 2015 By Digital Curator Leave a Comment

Image via Flickr user Bob Barely Time

Our instinct to get the maximum bang from the buck is particularly visible when it comes to buying car insurance, because if one does not make a claim, one does not get any value for the premium paid.

Naturally, we negotiate hard. However, motor insurance buyers need to be cautious, particularly when the insurer agrees to the discount you are seeking.

Has your car’s value been lowered?Misselling happens when you buy a policy via an insurance agent. “If you negotiate hard with an agent, he may lower the value of your car, hence lower your insured declared value (IDV),” says Deepak Yohannan of MyInsuranceclub.com. Say your car is valued at Rs 7 lakh and you are asked to pay a premium of Rs 22,000.

Has voluntary deductible been increased?

When monetary loss is borne by the insured, it is called deductible. It can be compulsory or voluntary. For a policy where a car’s IDV is around Rs 6.50 lakh and an insurer offers a lower premium of Rs 18,930, you are also offered a voluntary deductible component of around Rs 5,000.

Incorrect claim history?

If you want to shift to another insurer, and you do not disclose that you had made a claim with your previous insurer, you may get a discounted premium from your new insurer. The problem arises when you make a claim with your new insurer.

Have add-on covers been removed?

“At times, premiums are lowered after removing add-on covers from the base policy,” says Divya Gandhi, Head, General Insurance and Principal Officer, Emkay Insurance Brokers. So, first the agent will show a quote with the cost of add-on covers factored in.

Standard cover pitched as special offer?

Often agents sell a policy by bloating its price and then offering you a 20-30% discount on the premium and project it as a special deal for you. Or, they include an add-on cover and say that despite an additional benefit they have been able to keep the premium unchanged.

by Neha Pandey Deoras

See Full Story at economictimes.indiatimes.com

Insurance Agency Singapore | Commercial Insurance and Personal Insurance