Growth and Jobs | Funding insurance into the new year | News

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An important requirement for owning a motor vehicle is insurance. In addition to being mandatory, it offers significant benefits to motorists in the event of theft, damage, injury or death, depending on the type of coverage.

Insurance coverage is either one-third or full. The third party indemnifies its legal liability for property damage, injury or death of third parties resulting from a motor vehicle accident. Multi-risk insurance, on the other hand, covers civil liability towards third parties, as well as theft and damage caused to one’s own vehicle.

Since auto insurance is a recurring expense every year, it is prudent to budget it so that expenses can be prioritized in advance, to ensure that funds are available to renew the insurance policy when it expires.

Christopher Knight, a chemist, said he has a systematic arrangement in place to renew his auto insurance every November because driving without insurance is a reckless risk he said he would never take. “During the year, I have dedicated sums [of] payroll deduction that goes to my credit union. It’s not exclusively for insurance, but it’s for expenses of this nature that I use the money from the credit union, ”he explained.

For Marcus *, an electrician, he too has a plan to fund his insurance policy annually.

“My insurance is due in March. So every year I put aside my NHT (National Housing Trust) reimbursement to renew my insurance, ”he revealed, adding that preparation beforehand ensures that his motor vehicle is still in compliance with the law.

Chris Hind, Managing Director of JN General Insurance Company, pointed out that insurance protects motorists in the event of an unfortunate situation regarding their vehicle.

“Without insurance, potentially expensive repairs for damage and medical bills incurred will have to be paid out of pocket. These costs can be overwhelming in the absence of insurance protection. Having auto insurance is absolutely essential to avoid crippling expenses, ”he said.

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He stressed that financial constraints, especially those caused by the COVID-19 pandemic, can have an impact on the purchasing power of some motorists, forcing them to delay renewing their insurance.

“If you’re having trouble paying the premium, talk to your insurer, who can set up a payment plan for you or direct you to funding the premium. Insurance companies often facilitate payments, ”he advised.

The insurance professional pointed out that motorists can save on the cost of insurance premiums by being aware of the factors taken into account in the price of coverage.

“The main factors in the cost of an insurance premium include the insured’s age, driving experience and record, as well as the use and type of vehicle insured. Drivers with a good driving history will pay less for insurance, ”he explained.

“Also, you could further reduce your insurance premium payment by taking a driver development program with a reputable institution, such as the Jamaica Automobile Association. This will improve your risk profile, as it will give you experience in dealing with dangerous road conditions.

Gresford Dinald, sales manager at the insurance premium finance unit, JN Bank, stressed that motorists who have difficulty offering a lump sum payment for insurance may consider insurance premium financing.

“One of the biggest advantages of financing insurance premiums is that people don’t have to commit all the money up front, which gives them better opportunities to manage their money. Claimants are only required to pay an initial 20 percent of the insurance premium, and they have up to nine months to pay off the balance. The process is quick, as funds are disbursed within 48 hours of submitting the required documents, ”he explained.

“Unlike other types of loans, no collateral or collateral is required for premium financing, as the insurance policy is accepted as collateral for the loan. While a bank loan can be used for other purposes, premium financing only applies to payment for auto, home and general insurance, ”he explained.

* Not his real name


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