Why do we need car insurance in Jamaica? Just drive down Red Hills Rd. in rush hour to get the answer.

Our drivers are impatient, often disobey signals & believe they are a law onto themselves. Also, 383 persons died in road traffic accidents last yr.

A thread on insurance. 1/

Car insurance is a mandatory requirement for getting a motor vehicle in Jamaica. In fact, before you can purchase a vehicle i.e. transfer it into your name, you must show proof that you have insurance for it.

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Auto insurance forms a part of a wider category called “General Insurance” or “Casualty Insurance” which basically covers anything other than Health Insurance or Life Insurance (i.e. cars, homes, house contents, boats or even a pianist’s fingers or an athlete's feet) .

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The industry is regulated by the Financial Services Commission (FSC). The FSC lists twelve companies licenced to sell general insurance in Jamaica, all of which sell auto insurance.

http://www.fscjamaica.org/regulated-industries/content-1200.html

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A common misconception is that you can use insurance to cover repairs if something mechanical happens to your car. If you are driving down the road and your tyre blows out, the insurance company will not typically pay for it to be fixed.

Insurance covers accidents!

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So if a mango drops on your windshield, the insurance will cover it (but usually at most once or twice a year).

If you are driving down the road and someone else accidentally swerves into your car, insurance will cover it.

6/

The are generally two types of ins. coverage here; Third-party & Comprehensive.

Third-party: Covers the damage to the other person’s vehicle if you are in an accident & you are determined to be at fault.

Comprehensive: Covers repairs to both your vehicle & the other person’s

How do you get insurance?

In addition to the 12 Insurance Companies, the FSC lists 24 Insurance Brokers in Jamaica. Insurance Brokers will shop around with each of the insurance companies to get the best price for you. This price is called your insurance premium. 8/

You can visit either the insurance brokers/insurance companies local branches or their websites to buy insurance. The companies will ask for your basic information (who you are, where you live etc.) and of course information about the car you wish to insure.
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If you’re not ready to buy yet and want to have an idea of the cost, some insurance websites can give you a quote on how much you would expect to pay for insurance.

So what determines the cost of insurance?

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Insurance prices will typically depend on your:

Gender
Occupation
Age
Years Driving
No Claim Bonus*

The Year, Make and Model of the Vehicle
The value of the vehicle
Whether it is comprehensive or third-party insurance you wish to purchase

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Visit http://gillianajackson.com/how-to-get-insurance-in-jamaica/ to see why those things matter in the price

Life-Hack: Most persons don’t know that you can pay over a period of months if you apply for insurance premium financing. There are several pmt options available, some interest free.

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#financetwitterJa