What is one thing that you MUST HAVE. But yet, HATE TO USE THE MOST???

You guessed it. Insurance!

Insurance renewals come by once a year, along with road tax payments in Singapore. If you disregard or fail to do so, you will be unable to drive your car. Insurance is something that most people deem troublesome so let me guess, you will usually go ahead with the ONE insurance underwriter that provides you with the necessary follow ups when your renewals are due. You might then consider these other factors that might allow yourself to further understand how insurance renewals work and it might help the next time your insurance policy expires and is due for renewal.

1. INSURANCE PREMIUMS

Insurance premiums are the No. 1 factor that determine whether or not to take up insurance from the particular underwriter or not. If the premiums are much more expensive relative to other underwriters, then definitely it is only common sense to go with the cheaper option. While insurance premiums seem to be very straightforward to consumers, it is a totally different story when it comes to a underwriters standpoint since they have a certain risk appetite. While some might seem to be more risk averse and offer higher premiums, others might be risk takers and offer lower premiums just to claim a bigger market share. Well, you ought to know that there is a LONG AND RICH history of underwriters who offer lower premiums but have underlying terms and conditions that state (not so explicitly) that they do not cover the majority of claims. Therefore, LOWER PREMIUMS DO NOT NECESSARILY TRANSLATE TO BETTER DEALS for you.

2. INSURANCE EXCESS

Insurance excess is also equally as sensitive a factor as compared to premiums. In fact, most underwriters that offer lower premiums relatively might make up for it by offering a higher excess amount. This is to balance their risk when offering insurance premiums. Similarly, underwriters who offer higher excess amounts are those who are more risk averse whereas those who offer lower excess amounts are those who are willing to take up more risks. Do take note that as excess is the upfront payment that you have to pay when you get into an accident, a common saying will be:” I will take up lower premiums with higher excess because i am very careful and i will not get into an accident.” Nevertheless, you know your individual driving patterns best, and you should always consider “Human Error”.

3. INSURANCE CLAIMS

When an accident occurs. you will see how worried and uptight everyone gets. They are suddenly afraid that their coverage is not adequate and they become very adamant about their insurance policy details and what they can claim. Unfortunately, these claims have been penned down in black and white when you renewed and when an accident occurs, there is only that much you can do if you have insufficient coverage. Moral of the story, make sure you know what kind of coverage  you are getting when you do your renewals and know that end of the day, if you really have to use the claim, there will be NO PROBLEM NOR HASSLE for the insurance underwriters to perform the claim submission for you.

4. INSURANCE SERVICE

Most car owners do not have insurance agents overseeing their car insurance renewals, and even if that is the case, many of them are not experienced when it comes to claims history. In fact, agents have more authority than you think. They are the ones who negotiate with the underwriters and also liaise with them for renewals and claims alike. It is best to have an agent who you can tailor to your your needs and answer your every question that you have. It is their responsibility to also come to you 1-2 months before your insurance expires to make sure that you can get ample time to decide which coverage you want and arrange for the renewal to be done for you when the time comes. It is imperative that you get an agent that you trust and has also have had enough experience in this field to make sure that your car insurance renewals are trouble free. And most importantly, if you were to get into any accident *TOUCH WOOD*, that you would know for sure… that your agent will be there to guarantee your claims for you.

5. INSURANCE REBATES

Many underwriters want you to continue to use them and hence they have certain extra discounts that they might give. Agents themselves might pair up with other brands/ products that will reward you if you were to use or continue to use their service. Therefore you can look out for some of these rebates that agents/ underwriters might give (you might just be awarded very handsomely).