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Should I renew my AIG auto insurance?

March 26, 2009

With all the hoo-hah surrounding AIG (USA) and the fact that my AIG auto insurance is expiring soon, I’m now faced with a dilemma. Stick with them or switch to another insurer?

I remember asking the agent last year when the AIG problems were just brewing up in the press – is it safe to go with you guys? (Yeah, very smart to ask a salesman, I know. :mrgreen: )

Her reply then was AIG USA and AIG Malaysia were “different.” She assured me that the local arm had enough funds to cover all liabilities and other clients had no problems with their covers. Having a hundred other pressing things on my mind then, I just shrugged and said okay, where do I sign.

I’ve never put in a claim and I have no complaints but after a series of jarring news about controversial bailouts, the sale of their US HQ and news about AIG’s funds being converted into bonuses for their top US executives – funds that could be needed to pay policyholders like me if I make a claim, I don’t know what to think. And this bit about their failed Asian sale last month is not exactly a confidence-booster either.

But then again, maybe there is a positive story about their local operations that policyholders like me need to hear.

So, anyone know if any of the US shite is affecting their local auto insurance business?

5 Comments leave one →
  1. March 26, 2009 9:26 am

    With all the stories I hear every now and then about how workshops and insurance adjusters work hand-in-glove and etc etc… and how motorists only get their car back with a sloppy patch up job and nothing else after a crash, and how some insurance companies say they are being cheated all the time by insurers, I don’t really pray to that insurance god. I just follow the requirements to renew my road tax. And if AIG’s, Kurnia’s or whatever’s agent gets uppity and demand I buy extras, I just tell the guy, sell me some other insurance or I go elsewhere. Local or international? I can’t seem to see any difference.

    The difference is whether the insurance company will have enough money to honor your claim if you do get into an accident. If all your insurer’s money had evaporated through massive losses or given away as staff bonuses, then people may not believe they can honor their obligations. I’m not sure about this but I think central banks do require insurers to prove that they have enough funds to cover a certain % of their risks. A sort of compulsory insurance against the insurance company to ensure that policyholders aren’t left in the lurch if something happens.

  2. March 26, 2009 9:54 am

    The only problem I have with AIG is price. In fact most of the auto insurance in Singapore is ridiculously expensive. Without the non claim discount, we are talking about 1.6k to 2k SGD. Is that the situation in Malaysia as well?

    Hi, I think I’m paying about 3k RM for my AIG policy. Here, I believe the rates are calculated based on insured value and NCD, not so much the company providing the cover.

  3. March 26, 2009 10:18 am

    In US = AIG. In Malaysia, also AIG. What makes them think those 2 are separate entities? This is what happened when people asked me whether I want to apply for a job in AIG. I said they are the same. I know all those US is US, Malaysia is Malaysia, bla bla bla. But at the end of the day, they ARE still the same company. Don’t tell me if the one in US closes shop, and it won’t have ANY effect on the Malaysia 1. Pure nonsense. =_=

    Haha, that’s common even in Singapore. 🙂 Perhaps unlike MNCs like Dell or HP, might the country’s central bank impose a mandatory reserve requirement on banks and insurance companies, an amount that cannot be touched or sent offshore to pay Wall Street bonuses thus ensuring that local operations are safe?

  4. April 29, 2009 7:22 am

    Zurich Financial bought AIG’s auto line, 21st Century, two weeks ago for 1.9 billion dollars. This means that Farmers Insurance Group now owns your auto policy which is great news! Farmers is an extremely reputable company with an excellent financial rating. Hope this information finds you well:)

    Thanks but I ditched AIG and went with something else. 😀

  5. October 2, 2009 2:41 pm

    I heard that 9/10 drivers in singapore sign and send a cheque when the car insurance notice comes. That’s crazy!

    I think most did not know that they can request for multi car insurance quotes from different companies. By doing this I believe they can easily save 20% off premium.

    They don’t do that? I’m surprised!

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