Demand Soars for Short-term Auto Insurance

Insurance expert and general manager of JN General Insurance (JNGI), Chris Hind, has pointed out that short-term auto insurance is increasingly becoming the desired option for motorists. He was speaking against the background of the hundreds of motorists who have accessed the JNGI ‘Shorty,’ short-term insurance since its introduction to the market two years ago.

The company’s short-term auto insurance policy for 30, 60 or 90 days was the first of its kind in the Jamaican market and coincided with the onset of the COVID-19 pandemic in the country. A 30-day ‘Shorty’ insurance can be obtained for just over $2,500, plus GCT.

“Our intention is to provide greater inclusivity for motorists to be able to access insurance, so that they can operate their vehicles legally on the road”, Mr Hind underscored. “With many persons being affected by economic hardship, caused by the pandemic, understandably, the demand for short-term insurance has significantly increased”.

“The increased demand is an indicator that more persons are making conscious decisions about money management, especially as the pandemic continues unabated. Many persons have lost their jobs or are earning a reduced income because of the current local and global economic challenges,” he related.

Mr Hind explained that beyond the affordability of short-term insurance, the policy is appealing as the coverage is the same as the equivalent, traditional one-year insurance contract. The product is exclusively accessible online, thus eliminating the need for a branch visit or the submission of hard-copy documents.

“Some motorists are also opting to take short-term insurance when they are in the process of selling a motor vehicle; and this is advisable so they don’t have to commit to a six-month or one-year policy while waiting to sell. Besides, it is also convenient for loved ones who are visiting from overseas and would like to use a spare vehicle,” he added.

Yanick Cole, a merchandiser from St James, welcomes the opportunity to purchase short-term insurance for his vehicle.

“Shorty is affordable if you don’t have enough money,” said Mr Cole, pointing out that he paid $2,900, plus tax for the 30-day insurance. He disclosed that he has also purchased the 60 and 90-day insurance and will continue with short-term insurance as he is planning to sell his vehicle soon.

Similarly, Gilliane Simms, a resident of St Catherine, who obtained a 90-day short-term insurance policy three times, opined that the arrangement is convenient.

“I own a small business, and I am a single parent; therefore, using the Shorty insurance gives me the freedom to travel on the road, and I don’t have to pay a large lump sum. It’s better for me to pay in smaller amounts. It is convenient working on a small budget,” she related.

Mr Hind recommends that persons who are experiencing financial challenges should consider short-term insurance, as it is never worth the risk to drive without insurance.

“In addition to the legal trouble which could result, insurance provides the peace of mind that there is something to fall back on, should there be an unfortunate incident for which you are liable; or, if you damage another vehicle or injure someone,” he advised.