Car insurance - Do we need to insure with PARF/COE

[chessgame]

Hi,
got a question on car insurance .

I am considering of insuring my car without PARF/COE.
Savings of around 5%.

The reason that most insurance quote why you need this is because of the hassle in getting a scrap car buyer and you may not get the full cash rebate if your car is in very bad condition after accident.

But now that we can get cash rebate from LTA, i am just wondering if it is really that hard to get a scrap buyer when the car is really in a bad shape (beyond repair).

Anyone to comment ?

[mave]

If you are refering to 5% of the insurance premium, then this saving is not worth it.

considering most insurance is in the region of $1500, what you are saving is only ~$75. That is roughly what we we will spend on a Plane ESC. I would suggest that you shop around insurance companies.

YOu can save alot without sacrificing any benefits of the policy. I save more than 50% of the premium for office. From $25,000 a year to less than $9000.
SO, do a little more shopping and not take out any options from your policy.

Hi,
got a question on car insurance .

I am considering of insuring my car without PARF/COE.
Savings of around 5%.

The reason that most insurance quote why you need this is because of the hassle in getting a scrap car buyer and you may not get the full cash rebate if your car is in very bad condition after accident.

But now that we can get cash rebate from LTA, i am just wondering if it is really that hard to get a scrap buyer when the car is really in a bad shape (beyond repair).

Anyone to comment ?

[chessgame]

Sorry bro, but you are not answering my question.

I am asking why we need to do this ? It just doesnt make sense.
Shouldnt the insurance companies stop doing this ?

Since you are talking about $, 5% of every motor policy in singapore...for insuring what ? A guaranteed amount back which will be given by the government ?

If you are refering to 5% of the insurance premium, then this saving is not worth it.

considering most insurance is in the region of $1500, what you are saving is only ~$75. That is roughly what we we will spend on a Plane ESC. I would suggest that you shop around insurance companies.

YOu can save alot without sacrificing any benefits of the policy. I save more than 50% of the premium for office. From $25,000 a year to less than $9000.
SO, do a little more shopping and not take out any options from your policy.

[dexteh]

bro if your car is OPC than its worth it if normal car only 5% izzit worth it if let say stuck in flood your car total lost insurance only pay body price without paper value leh... if your car got no loan than take third party lor more saving

[mave]

Sorry man, I think I lost you there.
Hope you find the answer to your agenda. Good Luck.

Sorry bro, but you are not answering my question.

I am asking why we need to do this ? It just doesnt make sense.
Shouldnt the insurance companies stop doing this ?

Since you are talking about $, 5% of every motor policy in singapore...for insuring what ? A guaranteed amount back which will be given by the government ?

[hallobaby]

The 5% to make the govt pay you faster lor!!

[hallobaby]

Btw, do you have a choice not to be insure??
Normally, I don't look at the policy lor..
The items you insure is the standards set by the govt!
So let's be it!!
You had already spent 20-30 or even 40k for the COE..
What is the 5% going to eat you..
And don't forget the ERP sucking your cashcard.

Relax and enjoy being suck by the govt!!

[Adrianli]

Btw, do you have a choice not to be insure??

Yes, you have a choice.

Pay full cash for your car and purchase only 3rd party, fire and theft insurance. Couple of hundreds only.

You will save a lot more. I did that previously for my COE car. Cost me S$300+ per year only.

[HotDogBun]

[QUOTE=hallobaby;474537]Btw, do you have a choice not to be insure??
QUOTE]

Answer is no.
Vehicle insurance (of any form and extend) is a requirement by law in SG.
You can choose not to have any insurance for your vehicle, just don't get caught driving it.

[Brandon Chng]

Yes, you have a choice.

Pay full cash for your car and purchase only 3rd party, fire and theft insurance. Couple of hundreds only.

You will save a lot more. I did that previously for my COE car. Cost me S$300+ per year only.

hi may i ask why wouldn't you want comprehensive coverage for a fully paid car? i just paid full cash for my car a month ago too but bought comprehensive still. if there's a good reason to go only third party for a fully paid car i might consider since my insurance for the type of car and my age is a killer.

[Adrianli]

hi may i ask why wouldn't you want comprehensive coverage for a fully paid car? i just paid full cash for my car a month ago too but bought comprehensive still. if there's a good reason to go only third party for a fully paid car i might consider since my insurance for the type of car and my age is a killer.

Because it is cheaper to scrap the car then to repair it in a total lost accident. COE cars do not have any body value at all. U only get back the remaining COE. So its better to get third party insurance.

Any accident by urself, can decide whether to repair, ignore or just scrap the car.

[HotDogBun]

Your vehicle insurance is a transfer of risk to the insurance party. It's a form of liability insurance. When you damage the property of others the insurer takes the payment of damages and penalize the client by higher premium.

An example would be you being the guilty party of an accident which resulted in damages of a persons vehicle and damages valuated at $50,000.With comprehensive insurance likely the insurer pays huge part if it if not all of it.

So hallobaby, hope you get what some meant when they advised not to save on insurance.Government knows many are not able to pay for certain things so they enforced the requirement.

[hallobaby]

i know the meaning for the insure...
im meaning do we have a choice for not insuring the 5% lah.

[hallobaby]

anyway, im still wondering y insurance is going higher and higher...
because higher accident rates???or too many vehicles die in the flood??

[chessgame]

Sorry guys, but i think i need to explain more. Some facts .

1. Yes, you have a choice of not insuring COE/PARF for motor insurance.
A car must have motor insurance , but drivers can save 5% (which is an approximate figure) of insurance but not insuring for COE/PARF/

2. Insurance is transfer of liability.

The key difference between 3P and comprehensive insurance is that you dont have to pay for damages on YOUR car when it is YOUR FAULT.

3. So back to question on COE/PARF and understanding pt 1 and 2.
What is insurance coverage for COE/PARF?? I have been quizzing many agents but i have not found a good answer.

Most agents can quote you the convenience aspect for having COE/PARF insured. That the insurance company will take care of everything if it is comprehensive.

But those who have experienced a major accidents (when repairs exceed scrap value) before can tell you things are usually less clear cut and insurance firms are not the fastest to pay as promised claimed.

So the another reason they give , is that you will not lose your COE/PARF rebate because dealers usually take a cut if you have to scrap your car sell to them

Well, that is true in previous years until LTA changed this and gave FULL CASH for unused portion of COE/PARF provided you send your car to authorised scrap agent who accepts it.

Now, this is the portion i dont know enough. What does the scrap agent do ?
I believe the claim the COE back from the government (definitely) and get the unused portions of PARF as well.

If so, then there is no benefit to consumer for insuring COE/PARF.


4. Now, here is something to think about for those who really like to think.

a. With COE prices are going up, what do you think insurance companies are going to do when they have to "insure" a higher value asset ? You think they going to charge you the same premium ?

b. If the insurance companies were really protecting a possible loss case for COE/PARF , dont you think 5% of premium is an OUT of the world deal in terms of insurance coverage ? for less than 100 a year, insurance companies have to cover a 30,000-50,000 asset value ?

c. And finally, back to my original post, can scrap car dealers dont accept your car condition is too poor ? What happens then ?

Thanks