In search of 'cool' insurance answers for 25-year-olds

Question: I need motor insurance for my first car. I am 25 years old and have been driving since I was 21. The vehicle is a Toyota Ipsum. It was manufactured during the year 2000 and is valued at $795,000. What is the fastest way to get insurance at the most reasonable price?

- sanjayrhamilton@yahoo.com

Answer: I tried to get quotations online for your car four times. The companies that I selected controlled over two-thirds of the $11.4 billion market last year. At first glance, their websites indicated that I could get online quotations.

I thought that this method of getting information to answer your question was cool and would appeal to you - a member of the BB (Blackberry), IM (instant messaging), SMS (text message), and 21st-century generation.

Unfortunately, those attempts failed. Even though the Govern- ment recently passed a law to facilitate e-commerce, the insurers that I randomly chose are technologically backward, prefer to do business the old-time way, or want to avoid persons in your age group.

You will have to get quotations the old-fashioned way. This involves using a broker or buying directly from an insurer. This is happening when some local banks have started to allow customers to manage their accounts using cellphones, in addition to their computers.

For the record, here are the responses that I received to my requests for online quotations:

• Company No. 1: "The quotation provided by the website is preliminary and is subject to change without notice upon completion of a motor-proposal form. The company is not bound to offer insurance coverage for the sum quoted and reserves the right to withhold coverage if a quote is given from this site." After completing and submitting the online form, this company did not offer a quotation.
  
• Company No. 2 stated that "the following page at present has no information" and suggested another visit "as updates on our website are done on a regular basis".
  
• Company No. 3 indicated that it was unable to provide a quotation at this time.
  
• Company No. 4's message was succinct. It said: "Programme is being amended, will be back shortely" (sic).

To say that these responses for online quotations baffle me would be an understatement.

Buying motor insurance involves more than deciding which company offers the best price deal. You must also prove that you are not a criminal; disclose the source of the money that was used to buy the car; and tell what links you have with "senior politicians, senior government officials or political parties". (Significantly, dons who have so much influence, perhaps more than senior politicians, are excluded from this elite group.)

These are examples of some of the things that buyers are required to tell insurers about according to rules laid down by the insurance regulator under The Proceeds of Crime Act.

First-time buyers should also know about The Motor Vehicles Insurance (Third-Party Risks) Risks Act (see http://www.moj.gov.jm/laws/statutes).

This law sets up the system for the compensation of the victims of traffic accidents. It also summarises the minimum coverage that motor vehicle owners are required to have and lays the foundation on which the three types of coverage - comprehensive, third party fire and theft, and third party - is constructed.

The backwardness of the four insurers in relation to technology could turn out to be a blessing. A quick response and price are only two of many important things that you should consider before you decide where to buy coverage. In an article that I wrote last December - 'How to make better decisions about motor insurance' - I looked at the pros and cons of buying coverage directly from an insurer or through a broker. I also listed 13 things that buyers should take into account in the decision-making process. I am sending you a copy of the article.

It is my hope that after you have completed the homework that I have assigned, you will end up making a more informed decision than if the search for online quotations had not been such a complete failure.

Cedric E. Stephens provides independent information and free advice about the management of risks and insurance. aegis@cwjamaica.com or send SMS/text message to 812-7233.