Motorists Benefit from Flexible Insurance Scheme
Since the flexible car insurance scheme was introduced last February, a lot of motorists have already benefited from it. The scheme was aimed at giving insurers greater autonomy to develop new car insurance products and set premium changes.
Premiums for private cars are at 4,554 yuan between March to May, indicating a six percent fall year-on-year. Premiums for fleet owners were at 5,376 yuan from March to May indicating a fall of 3.6 percent every year.
Car owners have saved around 400 million yuan in premiums just for the year 2011 as a result of the new scheme. Sixty-five percent of motorists have received a thirty percent discount in their car insurance since they have made no accident claims in past year. This is evident in the decrease in reported accidents last year representing a 1.7 percent decrease from March to May.
Insurance premiums will increase when car owners are caught in offenses such as driving without a license, speeding, ignoring traffic lights, driving on the wrong side of the road, hit and run and drunk driving. The insurance premium scheme will be fully introduced in 2013 after a trial run in Shenzhen will be completed.