Why does insurance renewal is always expensive than new?

[Bluepica]

I'm not sure how true is my statement, but personally, my renewal with AIG or AXA is always higher than the first year OR new policy from other insurer.

Why is that so?

[Blueray]

 

same for my case too, so just look around for cheaper one and switch.

[Valentino]

premiums are more expensive as each year passes by. This is due to the high claim $ in SINgapore. Thus, even with additional 10% NCD, renewal might still be more expensive than previous year.

[Bluepica]

premiums are more expensive as each year passes by. This is due to the high claim $ in SINgapore. Thus, even with additional 10% NCD, renewal might still be more expensive than previous year.

 

This is true, but how come other new insurer will offer something much cheaper than the original insurer?

[Iziz]

Incentive to change car every yr?

 

A few reasons lar:

 

1) AD's insurance rates r negotiated once a yr (usually), so e rates r not reflective of e current situation.

2) AD's rates r based on bulk volume.

 

But most imptly, pls drive safely [drivingcar]

 

but DUN road hog!

[Octopus]

I'm not sure how true is my statement, but personally, my renewal with AIG or AXA is always higher than the first year OR new policy from other insurer.

Why is that so?

 

No true for my case. Feb'09 when due for renewal, AIG quoted me slightly cheaper (around $100 lesser) than previous year when I just got my car. But I manage to find another insurer whom offer even better premium and better clauses.

[Valentino]

also depends on the type of car u drive sometimes.

 

each insurer rate for different cars are different basing on their own claim records.

Thus, premium by insurer for the same car can be very different.

 

on a side note, i'm usually fine with any insurer except for aunty lucy.

[Bluepica]

Incentive to change car every yr?

 

A few reasons lar:

 

1) AD's insurance rates r negotiated once a yr (usually), so e rates r not reflective of e current situation.

2) AD's rates r based on bulk volume.

 

But most imptly, pls drive safely

but DUN road hog!

 

Road hog??? Tell me which road/E'way u didn't find any road hoggers??? They really pissed me off! [rifle]

 

OT!