Buying a new car is a pleasant experience and every one’s delight. However one could be in for a surprise if you learn about the shocking premiums you would be paying on a new car. New car insurance can vary widely from one body style to another. For example, you may know that sports cars cost more to insure than others in family category.. That general rule of thumb does not just apply to traditional sports cars; it also applies to the two-door versions of popular family sedans such as the coupe version of the Honda Accord. That’s because people who drive these cars statistically tend to drive more aggressively than their sedan counterparts, making them a greater risk and causing their insurance rates to rise. Interestingly, convertibles tend to have lower insurance rates unlike the hardtop counterparts.
Interestingly also, since bigger cars are safer, you might think that larger vehicles are cheaper to insure. This is not always the case. The largest cars can inflict more damage on smaller cars in a collision, which may result in costlier repairs thus leading to higher insurance rates. Like body style, the car’s engine and transmission often can affect the insurance rate. Generally, the greater the horsepower, the higher the cost of new car insurance, even when you are considering the same car with a variety of engines. When it comes to transmissions, cars with manual transmissions are generally more costly to insure than those with automatic transmissions. An exception to this rule is the pickup, which often has a manual transmission because of its use as a work or tow truck. The reason for the higher rates again relates to the typical driver. Those behind the wheel of cars with higher horsepower and manual transmissions tend to drive more aggressively and become involved in more collisions. While body style, engine size and transmission type are all major factors in the way that rates are computed for new car insurance, rates can vary for similar, competing vehicles primarily due to their safety ratings and their likelihood of being stolen. To drive home this point, a comparism of similarly equipped versions of the 2010 Honda Civic and the 2010 Nissan Altima showed that the Civic cost less to insure on average over a five-year span. It is advisable to seek expert opinion when making a choice.If your new car insurance is not providing you with all these benefits then take time to ensure you are getting the best rates. You and your family deserve to have insurance you can depend on to be there when you need it and without any hassle. You have enough to worry about, especially in these days of economic stress .Let your new car insurance be one thing you can depend on. When one is unfortunate to be involved in a car accident the last thing you need is the added stress of an insurance company that is difficult to reach or delays in processing your claims. Too many people are paying too much for their new car insurance without being aware of the better options alternative insurance companies are offering. When you are purchasing new car insurance are you being offered GAP insurance in case your car ever becomes totaled? Without this important aspect of new car insurance you could be responsible for a large sum of money when you least expect it. Some insurance companies will charge more for your new car insurance policy simply because of the age of your vehicle, but a fair company will take into consideration your good driving record and discount your rate accordingly. Make sure you have the insurance you need at the best price here.

Prompt Claims Payment: Crucial to Survival of Underwriting Firms – Experts
To be able to rise up to prompt payment, insurers have been further charged to shorn in- fighting and sharp practices, by charging adequate premium that could carry the volume of expected claims. Analysts believe that insurance firms must adhere to this by making sure that risks brought before them are properly assessed before premiums are charged. Corroborating this position, Mr. Raymond Odamo, managing director, Afromart Group said insurers should publicise claims payment as a way of enhancing the egative image of the industry and boosting public confidence. He commended some of the insurance companies who inspite of the perceived secrecy in claims payment, have been publicizing claims paid out to clients. "One of the major challenges facing the local insurance industry, besides the negative image problem and poor awareness among the insuring public, is the correct assessment of risks. Once risks are correctly assessed, it becomes easy to charge the right technical price. Industry experts believe that much as insurance is based on the understanding that claims are paid from a pool of premiums from similar risks, it is logical that when losses occur, the pricing of the risks will go up at renewal.
The practice over time has been accusations and counter accusation between underwriters and reinsurers on one hand and between insurers and the insuring public on the other. Rather than point fingers at each other, he stressed that it is time for insurers to check their rates and make them commensurate with the exposures they cover while also paying the claims when the need arises.. Besides, he said it should be noted that reinsurers basically provide capital to insurance companies and this costs money, stressing that that when the cost of capital increases, cost of reinsurance also increases. Considering the relationship of adequate premium with prompt claims payment he enjoined stakeholders to always include underwriters, intermediaries and the regulators in every facet of insurance business. While emphasizing that responsible underwriting and professional claims handling can only serve to improve the image of the industry in the eyes of the buying public, he called on the National Insurance Commission (NAICOM), to adopt a policy of compulsory claims payment declaration as a tool to boosting public confidence.
It would be recalled that Sovereign Trust Insurance (STI) in its traditional style of letting the public know its claims payment profile, recently released its claims paid out last year. According to a breakdown of claims paid by the company from January-September 2009, the underwriting firm has settled claims totaling N425, 458,581.89 in the last nine months.
A rundown of the figures showed that a total of N138 million was paid in the first quarter, N173 million in the second quarter while N114 million went into claims settlement in the third quarter.
Claims paid under Motor Insurance amounted to N220, 843,530.59 (representing 52% of the total figure), according to the Head of Claims Department in the organization, Emmanuel Anikibe, Fire and General Perils Insurance accounted for N48, 605,626.69 while a total of N110, 181,338.39 was settled as Claims under General Insurance within the Nine Months period under consideration. Other figures provided are Marine Insurance N13, 463,627.23, Engineering Insurance N17, 650,878.03 and Energy Insurance N14, 713,580.96.
While commenting, the Managing Director of the Organization, Mr. Wale Onaolapo stated that Claims payment is key and paramount to the survival and reputation building of any underwriting firm in the country.

In his words “whenever the need arises to pay claims as at when due, we do not see it as doing our customers a favour or doing anything out of the ordinary; we are only fulfilling the promises we made at the point of picking up the business.” “We are obligated to settle claims as at when due and we will do all in our capacity to ensure that we do not disappoint when it matters most” The whole essence of insurance is premised on restoring to former status even after the mishap. I enjoin Nigerians both individuals and corporate organisations to see insurance an integral part of our lives just as we live with risk on a daily basis.
Stating further, Onaolapo said “we are forever committed to our vision of being a leading brand providing insurance services of global standards hence professionalism, integrity and sound corporate governance are values we hold in high esteem and abide by in the day to day running of the organization.
STI has over the years, demonstrated commitment to optimally maintaining a leading position in the industry in Nigeria. According to recent ratings, the underwriting firm has shown a great deal of consistency with a lot of potentials for growth in the years to come. In terms of peer to peer performance the company is also doing very well when compared to other Insurers in terms of capital, assets, gross premium income, investment income and net premium income .Odamo urged NAICOM to emulate the on-going reforms in the banking sector by totally overhauling the insurance industry and shed it of all its negative attachments.