Motor vehicle insurance prices are getting more expensive.
Over the last two years, motor premiums were declining but this has changed after insurers suffered from stiff competition, higher costs and lower earnings against a smaller vehicle population.
However, while motorists previously stood to gain from the falling prices, all that is set to change as motor premiums rise this year.
A report by BMI Research showed that motor premiums are expected to rise by 5.2% in 2016, bringing the segment’s total value to $1.3 billion.
This is only the start of an increasing trend, as motor premiums are predicted to continue rising over the next four years to 2020.
BMI Research was quoted saying that “motor vehicle insurance (including both compulsory and voluntary covers) is the largest domestic insurance sub-sector. It accounts for a little less than half of premiums pertaining to Singapore risks and just over 10% of total premiums written in the non-life segment”.
According to them, motor premiums are expected to “expand more rapidly than most of the other domestic insurance sub-sectors, with the exception of health insurance”.
Motor insurance is an absolute must for all vehicle owners, thus it is important to choose the insurance policy that best suits your needs.
For new car owners, your vehicle might already come with a default insurance plan that is tied in with your package from the car dealer. You can thus check that you are not on the auto-renewal scheme, so you can choose your own preferred insurer from the second year of ownership.
Once you opt out of the auto-renewal scheme though, remember to also set reminders so you will not forget to renew your insurance.
It is not uncommon for owners to simply choose the cheapest plan from the various quotes they may have received, but the cheapest may just be a stripped-down basic plan. For example, will you get a replacement car if your car gets into an accident and is sent to the workshop?
Take your time to customise your insurance policy based only on what you need. At DirectAsia, you can put together a policy according to your driving mileage and there is no middleman involved.
In the face of rising prices, it is time to pay more attention to what you are paying for and only get what you need!
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