Your car insurance premium has improved as of January 1, 2023.
The year 2022 was difficult for people and businesses all over the world.
Ghana was beleaguered by a weakening Cedi and skyrocketing price increases. Insurance
Traders raised their prices several times, and banks raised their lending rates significantly.
The Ghana insurance industry demonstrated goodwill toward the market by refraining from raising the cost of insurance protection.
The National Insurance Commission (NIC), the insurance regulator, has implemented new Motor Insurance prices (tariff) that all insurers are required to apply beginning January 1, 2023.
Here’s all the gist and how to check what you will be paying at your next renewal.
Among other things, the pricing change is intended to protect car insurance companies’ financial health so that they can continue to provide value to customers.
Before we get into how the new pricing works, let’s take a look at how car insurance companies fared during the 2022 recession. In this article, the terms “price” and “premium” will be used interchangeably to refer to how much you pay to insure your car, and “car” will refer to all vehicles.
How the 2022 economic turmoil affected auto insurance
Replacement parts, materials, and labor are all covered under insurance. The cost of imported parts and materials increased dramatically during the year. Repair labor costs have also risen as a result of the country’s rising cost of living.
In addition to rising costs, insurers faced significant losses in the value of their investments. Typically, the returns on insurance company investments supplement the collected premiums for claim settlement. Investment losses put insurers in a difficult position when it comes to their critical role of assisting customers in recovering quickly from financial losses in the event of an accident.
The new car insurance pricing is different in one notable way
The new pricing categorizes vehicles into 2 groups based on the year of registration:
● Group A: vehicles registered before 2020
● Group B: vehicles registered from 2020 onwards
The amount you will pay is determined by the classification of your vehicle. For example, if you own a Toyota Corolla saloon car that you only use for social and private commuting, third-party insurance will cost you Ghs423 if the registration year is before 2020. If you register in 2020, you will be charged Ghs468. Prior to the implementation of the new pricing on January 1, all private cars used for social and private commuting paid Ghs327.
You can CLICK HERE to check how much you will be paying for your car within 1 minute.
What the new prices mean for your bank account
Third-party car insurance will cost up to 43% more than it did in 2022. Because the third-party price is a factor in determining comprehensive insurance premiums, your comprehensive insurance cost will rise as well.
Pay small-small: a way to make it easier on your pocket
Good news! You can sign on to an installment payment plan with Brolly and pay small-small instead of making an annual payment in advance.
You can get full comprehensive insurance for the whole year and pay in installments of up to 12 months. You could also pay for third party insurance in installments up to 3 months.
Here’s all the gist and how to check what you will be paying at your next renewal.
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