Wednesday, March 24, 2010

ST Forum: More accountability needed for motor insurance

Read this letter in the Straits Times:
http://www.straitstimes.com/STForum/OnlineStory/STIStory_505625.html

The premium for the insurance of my motor car went up 20% on this year's renewal, even though I did not make any claim for last year. Many people would have faced the same experience.
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3 comments:

Norman said...

Perhaps the solution for some people is to get rid of the car, to avoid the escalating expenses.

I do not have a car. The reasons are as follows:

1. My workplace is near my home.
2. On weekends, my activities are not packed.
3. There are many taxis on the roads nowadays. We all know the situation that many taxi drivers are in.
4. When I really need a vehicle, I just get one from the car sharing scheme.

March 24, 2010 8:53 AM
Anonymous said...

Hi,

All we could do is to scout around, compare the scope of coverage, terms and conditions and prices. Or better still, let some online motor insurance brokers do the work for you.

I have just replaced NTUC Income with Tokio Marine. The latter charges 20% lower, with slightly better coverage (e.g. personal acccident amount & waiver of excess for 50% NCD ...) I must say. I read somewhere that AXA Insurance also charges reasonable rates.

March 24, 2010 11:02 AM
Anonymous said...

I mentioned before that for this year and maybe 2011, the premium increase for motor insurance will still be quite high.

Main reason is becoz the insurers as a whole are still losing money on motor insurance. Among all the different types of general insurance (e.g. travel, personal accident, home contents, commercial), motor is still the one and only one giving a big loss every year.

In 2009, motor insurance lost $44.5M. Better than 2008's $200++M lost. But you think insurance companies willing to swallow losses and subsidise you? Dream on!

The only thing you should do is hunt around for cheaper motor insurance. Only a matter of choice of bigger increase or lesser increase.

March 24, 2010 5:04 PM

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