Your car insurance could be going up!

Did you know that your monthly car insurance premium isn’t only based on your personal driving record, but the whola Jamaica’s driving record? Dog nyam we suppa! 

I came across this article in the Jamaica Observer. Insurance providers are warning motorists that an uptick in traffic accidents will impact their monthly premiums.

Now, I think we all know that our individual driving records impact how much we pay for insurance. If you have multiple accidents on your record, then insurers view you as a greater risk so they’re going to charge you more.

But I don’t think many people realise that the whole country’s driving record also impacts premiums.

According to an assistant general manager at GK General Insurance, insurance premiums are calculated using data and risk assessment models.

So if there are more  road fatalities, then there’s more risk to the insurance company. They’re more likley to have to pay out claims for injuries, property damage etc.

According to the Island Traffic Authority, 425 people were killed in crashes last year. So far this year, over 170 people have been killed in crashes.

More risk means more money, so higher premiums. Another insurance agent said in 2023, they were calculating premiums with an interest rate of five percent. Now they’re looking to raise that to seven percent. 

And remember last year we talked about the fact that insurance premiums and car loan payments were going up anyway thanks to high interest rates. So this is like a double whammy for car owners. 

And that’s the bottom line.