A hike in motor insurance premiums and a recent letter from the Guyana & Trinidad Mutual Fire Insurance Company suspending the underwriting of motor vehicular insurance have prompted expressions of concern from the National Association of Driving Schools (NADS).
The GTM letter cited the high frequency and cost of motor vehicle-related claims in the company’s decision to suspend the underwriting of vehicle claims.
Other insurance companies have raised their premiums in response to the spike in vehicle incidents on the roads.
For instance, the premium for motorcycle third-party insurance, which was $800 in 2022, has surged to $1200 in 2024 in some instances.
Kingson Jean, the National Association of Driving Schools (NADS) Vice President, has expressed deep concerns about the impact of rising insurance premiums on the transportation sector.
“Since the premium has gone up, what we find is that many more people have started to drive without insurance. Because when the odds come down to either buying food or paying rent, insurance will not be on the top priority for you,” Jean told St. Lucia Times.
Jean noted that the financial strain has led many to choose third-party insurance over comprehensive coverage or even to forgo vehicle ownership entirely.
He said the National Association of Driving Schools advocates a balanced approach to managing insurance costs.
“We want our insurance companies to do good because if they don’t do good, we don’t get the coverage which is mandated by law. And for them to do good, they must raise their costs. And that’s the problem for everybody,” Jean said.
He suggested that promoting safer driving practices and defensive driving courses could help mitigate some road issues and potentially reduce the frequency of motor insurance claims.
SIMPLE SOLUTION: Move away from Annual Premiums of THOUSANDS OF DOLLARS to Monthly or Quarterly Premiums to suit the Insured. That is what pertains in countries where the economies are far ahead of ours; yet these Insurers operating here have their hands to our throats, while trying their utmost not to meet their contractual obligations in honouring claims.
“Because when the odds come down to either buying food or paying rent, insurance will not be on the top priority for you,”
Wait. You’re telling me you can afford to buy a car but not pay the insurance because of food. How about sell the car and take public transport?
Insurance companies should consider lowering premiums for motorists who have not claimed for five or more years, or at the very least, maintain the same premium.
There are persons driving for way more than twenty years never had an accident an every year the premium going up that’s nonsense it should be going down as a good driver.
Car insurance, house insurance, food prices, gas prices everything has gone up.
As someone wrote earlier, paying insurance quarterly is a far better option than this yearly lump sum payment. In fact, salaries paid fortnightly instead of monthly would do wonders for the economy. People would always have money in their hand, rather than having to scrape by till the end of the month, every month.
Interestingly how food and land and major amenities have gone up by double and, in some instances, triple over the past 20 years but salaries haven’t risen more than 5-10% in the same period (if so much).
There are many insurance companies in St. Lucia who offer insurance premiums to be paid over shorter times. Google “Solis Credit St. Lucia” and write down the list of insurance companies that offer that service then call each company individually to get a quote and find out which one is best for you.
I ultimately settled in Consumers’ Guarantee Insurance which offers me monthly installments and the cheapest annual premium of them all. So everyone can check for one for themselvds
Now tell me how are insurances company not scammers? You all increase home insurances and blame it on climate change! Now you all want to increase cost of mv insurances because you are fulfilling your responsibility more often? Enough is enough…lucians will revolt on the system one day!
Lucians you all crying you all have alot more crying to do
Insurance companies don’t lose anything, the minute you make a claim, they raise your premium by 60%. Don’t even think of changing insurance companies after that, they will ask for a no claims letter from your previous insurer.
St. Lucians are not exempt from increases in every single thing – IT IS WORLDWIDE and that’s the reality.
So enough with the “things hard in St. Lucia” – things are hard WORLDWIDE no one is immune.
Insurance companies are all scammers but foolish people must pay the price.
* I’f you don’t put your monies in the bank see if they will ever exist to dictate your money.
* Get and electric bicycle pot holes won’t have you spending thousands, plus it the go green agenda along with save the planet with their climate change nonsense.
* With no vehicle there is no insurance, they scams with have to shut their business down.
With the daily multiple accidents on our fish pond roads someone must pay the price.
This is a for profit making business. Why do you think so many of them are into it?
Fully agree with PATRIOTIC LUCIAN’s “… trying their utmost not to meet their contractual obligations in honouring claims.”
I support the recommendation of lowering or maintaining the premium for drivers who have had no claims in 5+ years.