Motor Insurance: High excess advisable?

[Vvix]

Hi,

 

I am in the process of sourcing my own motor insurance.

 

I got a few quotes and I need to select one of them.

 

So far the quotations are on the higher side because I am a new driver and taking up comprehensive coverage on a sporty car.

 

A few insurers suggested option with higher excess ($2K, $5K, etc) for lower premiums.

 

However I am not sure of the implications of having a high excess... for example scenarios like...

 

1) Other people kiss my back and I claim his insurance.

2) I kiss other people back and he claim my insurance, btw what about my own car damage? how to settle?

3) Both cars hit by the side, 50-50 cases.

4) I hit an object, wall, tree, lamp post.

5) Other people kiss my car in the car park, hit-and-run cases.

 

From my understanding, excess only applies if I make a claim on my own insurance. And I heard that most people actually would not claim their own insurance even if they are having the lowest excess because they do not want to lose their NCD.

 

Considering that I am a new driver and would like to build up my NCD... please advice... thanks...

[Acemundo]

1)no impact

2)own claim got to pay excess

3)no impact

4)got impact

5)got impact if u claim ur own insurance.

[Soya]

be mindful that the higher premiums for low or zero excess is simply buying additional insurance to cover the excess.

 

example, say, for a $80k car:

option 1: $650 wif $700 excess

option 2: $800 wif $0 excess

 

in actual fact, one is paying $150 to insure against $700. that's a whopping 21% loading! a blatant ripoff.

 

compare that wif $650 base premium. it buys u coverage for total loss, 3rd party claim, medical, theft, etc, etc which could work out to hundreds of thousands.

[Jamesgetz]

the excess is the amount which you need to pay if the costs of repair goes beyond the excess amt and you are found to be at fault in an accident or in the case of a hit-and-run which you cannot identify the culprit ie. the insurance coy cannot find a scapegoat to get the repair $$$ from.

 

yes, if you park your car and a car rams into it when you are not around, you can claim your insurance but you are still liable for the excess even though it's 100% not your fault. LPPL

 

the excess amt like your insurance premium is a function of your age, driving experience and car model. all these factors are already fixed unless you ask your mum/dad to register the car or you sell your 'sporty car' for a toyota liteace. tat said, different insurance coys have different risk appetites and profiling so your only choice is to shop around. some coys offer different types of comprehensive coverage -> higher premium with lower excess OR lower premium with higher excess. which one to take depends on how deep your pocket is and how often u think u will get into an accident.

[Eversman]

Is it advisable to reduce premium by choosing higher voluntary excess?

 

My insurance is ending soon and i'm looking for new insurance quotes. I come across AVIVA insurance online quote and they are offering me

 

Annual Premium S$1,452.45 inclusive of GST if Total Policy Excess $2,000

 

Annual Premium S$1,543.24 inclusive of GST if Total Policy Excess $1,500

 

Annual Premium S$1,634.01 inclusive of GST if Total Policy Excess $1,250

 

Annual PremiumS$1,679.40 inclusive of GST if Total Policy Excess $1000

 

Annual Premium S$1,744.52 inclusive of GST if Total Policy Excess $750

 

Annual Premium S$1,815.57 inclusive of GST if Total Policy Excess $500

 

So which of the premium is more ideal? If i take the $2000 excess i can save up nearly $360 bucks. But if sway sway anything happen then have to pay $2k for excess..

 

What you guys think? Need some sounding advice.

[SGCMmaomao]

Choosing high excess is only upon u claimin own damages, usually if an accident happen which is favourable to u, the claim will be under 3th party accident claim. which is the workshop will claim the other party insurance.

 

It's better tat to get a lower excess as s--t happen all the time, end up u might have to pay up more (esp u hit on TAXI)

 

Keep a camera and pen and paper in the car. might come in use when there is an accident. Dun tail gate.. dun road hog..

 

On the road "IF YOU CAN'T BE FAST TO LEAD THE WAY, GIVE WAY TO THE FASTER ONES"

[SGCMmaomao]

Best tat u install a CCTV in the car, dun be surprise tat how ppl can twist and turn the fact of their accident report...

[Ghostrider]

Excess is when you claim own damage. You bang pple, you dun have to pay excess for his repair. But obviously your car is also damaged, if you claim OD (Own Damage) then you have to pay excess.

 

IMHO....not gonna reduce the premium a lot if you are under high risk group. ie young (new license) and sports car.

 

 

[Shanhz]

So which of the premium is more ideal? If i take the $2000 excess i can save up nearly $360 bucks. But if sway sway anything happen then have to pay $2k for excess..

 

What you guys think? Need some sounding advice.

 

2000/360=5.5 yrs.

 

consider whether in the past 5.5 yrs of driving, have you kenah any accident before, where you are responsible for it (and not claim other party)?

[Pryson]

i learnt smth thanks

[Grix17]

Excess is when you claim own damage. You bang pple, you dun have to pay excess for his repair. But obviously your car is also damaged, if you claim OD (Own Damage) then you have to pay excess.

 

IMHO....not gonna reduce the premium a lot if you are under high risk group. ie young (new license) and sports car.

 

Does "own damage" apply to cases where you were hit and the other party is unknown (like for parked cars)? Pay excess and NCD is affected if you claim against own policy?

 

Just another couple of questions:

How many % is considered as "AT FAULT"?

Is it fixed like 80% or more or does it vary with the insurer?

 

[SimonTan]

I mean in a 'normal' accident we can always claim third party(the other party ins)

 

Why do we bother with excess?

Unless one is always boh-boh to bang wall and other inanimate object.

 

 

[Nzy]

My insurance I buy only third party, fire and theft. And I choose high excess. The amount I save is more than enough to repair my car even if I get into 2-3 minor accidents per year.

[Ghostrider]

Does "own damage" apply to cases where you were hit and the other party is unknown (like for parked cars)? Pay excess and NCD is affected if you claim against own policy?

 

Just another couple of questions:

How many % is considered as "AT FAULT"?

Is it fixed like 80% or more or does it vary with the insurer?

 

For your case, I am not very sure if your NCD will be effected. But you would have to pay excess.

 

I remember GIA last time say 5K below will not effect your NCD.

 

If you are 80% free...then its not your fault...but I was told that if you kenna a few accidents that is not your fault (ie...eg pple bang your backside) it will add up and affect your premium. (happen to me....one year kenna bang 3 times).

 

I wonder why I was deem 20% at fault....wrong place at the wrong time ?

[Chrispie]

lately had to do a claim. The consultant from ORIX told me that the system now is clear cut 0, 50 or 100%. No more 20/80 etc.

[Nzy]

lately had to do a claim. The consultant from ORIX told me that the system now is clear cut 0, 50 or 100%. No more 20/80 etc.

 

But last month I just did a claim and I was 20% at fault. But my insurance is from NTUC. So maybe different?

[Grix17]

But last month I just did a claim and I was 20% at fault. But my insurance is from NTUC. So maybe different?

 

I chanced upon this earlier:

 

Barometer of Liability Agreement (BOLA)

 

It does show only 0, 50 or 100%.

 

Perhaps there were other circumstances such that the BOLA does not apply, thus some agency "measured" it to be 20%.

Edited June 22, 2010 by Grix17