Sunday, March 09, 2008

Large increase in motor insurance premium

Dear Mr. Tan,
Last year, I insured my new car with NTUC as the premium is cheaper. I have just received the renewal notice, and found that the premium increased by about 20%. This is a shock to me. Why should the premium increased by so much? Is NTUC still trying to keep the premium lower than the market, or will it be more expensive, due to the big advertising expenses?

I do not want to stay with NTUC. Can you recommend any other insurance company that charge lower premium?

REPLY
I read that the claims on motor insurance have gone up last year, not only for NTUC Income but for other insurance companies as well. I am not sure if the increase for NTUC Income is due to higher expenses and lax claim control.

I suggest that you telephone a few insurance compamies directly and see if you can get a lower premium rate. Read this FAQ:
http://www.tankinlian.com/faq/motord.html

Someone sent me an e-mail a few days ago. By telephoning a few insurance companies for a quote, he was able to get a premium that was 30% lower. He said that it was time consuming but worth the trouble.
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3 comments:

Anonymous said...

It is claim experience or cost(salary) hike expereince or both that contribute to increase in premium. You can't do anything. It is a free market. Just switch to another insurer.

March 09, 2008 2:39 PM
Anonymous said...

NTUC is a tricky company now. It doesn't keep to its cooperatives principles, something the agents like to boast.Anyway it has lost that values since the new management took over.Before the new management, the premium was kept low. Now, cost has gone up.Look at the extravagant full page ads, don't they add to the cost.
The high salaries the new staffs are getting.Who pays for them.
IT MUST COME FROM YOU!!!What cooperative? what social enterprise? all the bulls!!! We pay to make you look good?

March 10, 2008 10:11 AM
Anonymous said...

Mr Tan has advised to source around, do that.

I insured with China for $596 last year, and this year renewal, China wanted to charge $987.

I source around and got it insured with Income at $723.

Income for the same car, last year was also $598.

Look like all insurers are raising their premiums quite a bit.

My car is a Nissan Sunny 1.6 only.

March 11, 2008 5:19 PM

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