Please Read!! BEWARE!!!!

[IAIA]

Originally Posted by kon_sk

This disadvantage no longer applies. In the past, LTA refund (COE & PARF) can only be used to offset new car taxes. Now we can cash out the value directly.

Sorry, I think you are right.
So now there is one less reason to insure coe.......

[typeR]

Originally Posted by IAIA

Did some search and for your reading pleasure all:

Very old site, which explains why not necessary to insure COE:
http://www.getforme.com/community_cu...Einsurance.htm

From another site as to why may need to insure COE:
http://coldfusion.insurancesupermart...de/faq/faq.cfm
"Should insured insure the vehicle with or withour COE?
It is really the policyholders' option. However, it is recommended to insure with COE for the following reasons:

Financial institutions that extend the vehicle loans, for credit prudence, would generally expect the value of insurance coverage to be at least equivalent to the loan amount.
By insuring without COE, the insured is assuming the hassle as well as the financial exposure in the disposal of the COE refund certificate which is usually sold in the open market at a discount. The extent of the financial exposure will depend on the extent of the discount which is subject to demand and supply dependent on the new car market condition.
The saving in premium of 5% is negligible compared to the peace of mind received when the vehicles are insured with COE"

Confusing, heh?

I think it all depends on the amount of premium: 5% of $1000 vs 5% of let's say $5000 is lot of diff.
Pple paying lower premium may feel the the 5% is not an issue.

Tks, IAIA, for the informative sites, esp., www.getforme.com/community_currentissues_others_COEinsurance.htm[/url].

Surely the authorities should re-examine the fairness in both the premium discount (5%?) from insurers as well as the condition laid down by finance companies to demand insurance coverage of COE when making loans.

The authorities should also look at the process and amount in which insurers compensate the insured for incidence of "Total loss, including, theft or fire". Often the insured get short-changed as compensation from insurers hardly meets legitimate claims. How much will the insurers pay in a "Total-loss" situation?

They should not only protect insurance companies but also consumers with full transparency. Just hope that the authorities also browse this forum and take notice of such grouse of car owners, esp., car mortgagers and borrowers of finance companies.

The COE component can be quite a substantial %-age when used on a low-cost car. Of course on a Bentley or Lambo the COE is 'peanuts' and probably not an issue!

[skw3434]

To add on,

For illustration:
Market value: $80k
COE/Parf (Paper) value: $20k

In the event of total loss or theft:

If insured with COE/Parf, insurance company will pay you or your finance company the total market value, ie $80k

If not insured with COE/Parf, the insurance company will pay you or your finance company the market value minus (-) the paper value, ie $60k

After which you will have to go to LTA and de-register your vehicle and LTA will rebate you the balance of your paper value to you.

But however, do consider......
- LTA will rebate you based on the date of de-registration.
- If your car kana theft, the insurance company will normally give the green light to compensate and de-register only after 9-12 months.
- If you car kana total loss, insurance company will give the green light to de-register maybe fastest few weeks to 1 month.
- To de-register, we will need the approval of the insurance company as well as the finance company.
- if you COE is worth $10k, meaning 1 year = $1k, so after 12 months of the theft, and you de-register your vehicle, effectively you will be losing $1k of the paper value.
- and also not to mention, the cash flow issue when you need to repay back to the finance company. You may have to fork out $20k upfront in order to clear the finance 1st before you get back the paper value from LTA.

Hope this helps to clear some figures thingy.

But the main point of this post is to highlight that there are agents doing some unethically practice of insured WITHOUT COE without the knowledge of the car owner.
Insurance company's quotation always comes with COE. Insured without COE is upon the approval of the vehicle owner and as an agent, he needs to explain what is the differences between with and without.

In another word, this kind of agent is not honest and unethically in this trade which is not worth and not reliable to get your insurance with.

If nothing happened, then its ok.
What if something happened, and you call him and he act blurr....?????
Think about it....

Cheers
Darren Seetoh

[9911]

Happy new year Darren !!!
I'm one of yr customer requested "Insured without COE" haha....
Huat arr !!!!!!!!!!!