How Car Insurance is Calculated: Factors That Affect Your Premiums

Posted on March 13, 2025May 13, 2025 by Jerome Ruiz

How Car Insurance is Calculated: Factors That Affect Your Premiums

If you’ve ever spoken to your friends and family about their car insurance costs, you’ll realise that the costs vary. In some cases, the costs may vary widely. The truth is that insurance providers will take certain factors into account when calculating your premium. For example, your car insurance provider may look at your driving profile, the vehicle, your driving habits and more. In addition, the type of coverage you select will impact the cost of your premiums.

Fortunately, there are ways for you to lower your car insurance. Here’s what you need to know about how car insurance costs are calculated and how to lower yours.

Several key factors affect car insurance premiums. These include:

Driver profile
Vehicle factors
Coverage Type
Driving habits

Let’s dig a little deeper into each factor.

Driver Profile

Your driver profile, specifically, your age, driving experience and driving history play a large role in calculating your car insurance.

For example, if you’re a new driver or a young driver, you’ll likely pay more for your premium than someone older and more experienced with driving.

Young or new drivers pay more because they are more prone to accidents and risky driving.

According to a study analyzing road traffic accidents reported to the Royal Barbados Police Force in 1992, drivers under the age of 20—who represented only 4% of all licensed drivers—were involved in 18% of fatal accidents where driver error was identified as the main cause.

Fortunately, your premium should gradually decrease once you become older and gain valuable driving experience.

However, you may not see a decrease at all if you’ve ever been involved in a crash. This brings us to our next point, driving history.

Your history of accidents and violations, such as speeding tickets can impact how your insurance premium is calculated.

The more accidents and violations you have the higher your premiums. In contrast, if you have a good driving record, you’re likely to see your premiums decrease yearly.

Vehicle Factors

The make, model and year of the car you drive will impact how your car insurance is calculated.

For example, it costs more to insure a brand-new car than a used one. New cars are valued more highly than older cars and will therefore cost more to insure. At the same time, since new cars rapidly depreciate, your insurance premium could gradually decrease.

In addition, a luxury vehicle also costs more to insure than a more budget-friendly option. One reason for the difference in figures is repair cost. Luxury vehicles cost more to repair. This is also true for a new car, whether or not it’s a luxury brand.

For some insurance providers, the size of your car may have an impact on your premium. Larger vehicles may withstand crashes better and may attract a lower premium.

In addition, if your vehicle has a high safety rating, your insurance provider will likely quote you a lower premium than for a vehicle with a higher risk of injury. If you don’t already know, you can find your car’s safety rating online.

Speaking of safety, if your vehicle has safety features such as automatic emergency braking, lane centering assistance and blindspot warning, your premium may be lower. You’re likely to get a lower premium because your vehicle is less risky to insure.

Having a car model frequently stolen could raise your premium. For example, Hyundai and Kia vehicles had a higher rate of theft due to the inability of the owners to install immobilizers. Insurance providers may have responded to these occurrences by giving owners of these cars a higher premium.

On the other hand, if you have antitheft systems in place, such as a tracker, car alarm or even an immobilizer, you could save money on your premium.

Coverage Type

The coverage you choose will impact how your car insurance is calculated.

For example, if you get the minimum required third-party insurance, you’ll have a much more affordable premium. The major con of selecting this type of coverage is that the coverage is very limited and you’ll have to pay out of pocket for a variety of incidents such as bodily injury to yourself or damages to your car. Third-party insurance only covers injury or damage you may have caused to another person and their vehicle or property.

On the other hand, comprehensive insurance, which has the greatest amount of coverage will be the most expensive option but may end up saving you from costly repairs in the long run. Comprehensive insurance provides coverage for you and your vehicle and a third-party driver and their vehicle. Comprehensive insurance can even cover damage caused by natural disasters.

Driving Habits

Your driving habits are taken into account when your car insurance is calculated. The more miles you cover, the higher your risk of an accident and the higher your premium. However, if you don’t drive your vehicle frequently, you may be quoted a lower rate.

The purpose of your vehicle can also have an impact on how your car insurance is calculated. For example, if you use your vehicle for business, you may have to pay a higher premium in comparison to someone who just uses their vehicle for personal use.

A vehicle for commercial or business use tends to have higher liability limits and needs more coverage in the event of an accident.

Ways to Lower Your Car Insurance Premium

Fortunately, there are several ways you can lower your car insurance premium and save money. Consider taking advantage of the following:

Safe driving discounts- Insurance providers usually offer a lower premium for safe drivers who avoid accidents. For example, here at General Accident, you may be entitled to a “No Claims Discount”. Our “No Claims Discount”, accumulates over time based on the number of years you drive claims-free.
Bundling policies- If you bundle your policies, you may qualify for a lower premium. For example, at General Accident, if you have your car and home insured with us you get a bundle discount of 10%.
Comparing insurance providers- If you want a lower car insurance premium, don’t be afraid to compare insurance providers. You may find another provider who will give you a lower premium and help you save some money. Make sure you’re paying attention to what is covered, excess and other important factors before opting for a seemingly lower premium.
Insuring multiple vehicles with the same provider – Some insurance providers, like General Accident will give you a discount if you insure more than one vehicle with them. Currently, we offer a 10% discount.

How to Get an Accurate Insurance Quote

An accurate insurance quote is important, especially when you’re trying to compare insurance providers to get the best deal.

If you’re looking to get an accurate insurance quote, we make it easy for you. You can get a quick quote from our website by entering some basic information.

As you can see car insurance is calculated using a variety of factors that range from the type of vehicle you have to where you live and your driving habits.

That’s the primary reason why insurance premiums can vary so widely among drivers. If you’re looking to decrease the cost of your premium, there are many paths you can take. We recommend reaching out to us at General Accident to ensure you’re getting an accurate quote and fair premium based on your situation.

Which Car Insurance is Best? A 2025 Guide to Choosing the Right Policy

Posted on February 18, 2025April 10, 2025 by Jerome Ruiz

Which Car Insurance is Best? A 2025 Guide to Choosing the Right Policy

There are many car insurance options available nowadays. However, not every car insurance policy is right for you. Let’s face it, there’s a lot to think about. You have to consider how much coverage you need, your budget, and the car insurance provider. But it’s worth the effort to search for the right policy. Finding the right policy can not only give you peace of mind in the event of an accident but your choice can save you time, and money. If you’re wondering which car insurance is best, here is your 2025 guide to choosing the right policy.

Understanding Car Insurance Basics

But before you pick an insurance provider or even a policy, you must understand car insurance.

First, let’s look at the different types of car insurance:

Liability insurance- Also known as Third-party insurance- This option covers any injury or damage you may have caused to another person and their vehicle or property. This is the legally required minimum coverage for motor vehicles in Barbados. Driving without being insured against third-party risks may disqualify you from holding or obtaining a license for 12 months from the conviction date. While this insurance is the most cost-effective option, it lacks coverage for your car damages.

Collision- Collision insurance covers damage to your vehicle. It may help you repair your car or even replace it. This type of insurance does not cover medical bills, damage to someone else’s vehicle, or damage to yours unrelated to driving such as a tree falling on your car.

Comprehensive- As the name suggests, this type of insurance is comprehensive but can be costly. Comprehensive insurance policies, like what we offer at General Accident can cover:
- The costs for mechanical repairs, accessories, and spare parts
- The cost of wrecking/towing services if the vehicle is totaled.
- Replacement vehicle hire in case your vehicle is undrivable after a collision.
- Repairs or replacement for broken windscreen or window glass
- Medical expenses for the insured driver or authorized driver.
- Legal charges such as manslaughter
- Clothes and personal effects are lost in an accident with exclusions for things like money and jewelry.
- Damage caused by natural disasters and civil unrest.

Optional Coverage

Depending on your insurance provider, your budget, and your overall preference, you can choose to get optional coverage for your motor vehicle such as:

There are other types of car insurance coverage you may be interested in such as:

Personal Injury Protection- This ensures the policyholder and passengers get their medical bills covered after an incident.
Uninsured Motorist Coverage- This helps you to get compensation if you’re in an incident with an uninsured driver.
Glass Breakage- You can put in a claim for broken glass, whether windscreen or windows with this policy.

Criteria for Evaluating the Best Car Insurance Providers

If you’re looking for the right car insurance provider we recommend evaluating certain factors.

We recommend you evaluate:

Affordability and premium costs- Contact at least three car insurance providers and get the costs for a couple of the policies such as the one required by law and the ones that appeal the most to you. Note the ones that are within your budget. The policies with the least coverage will be more affordable and the ones with the most coverage will attract a higher cost. Your premium is the amount of money, you, the policyholder have paid or agreed to pay to the insurance company for their acceptance of his risk. You have to consider whether or not this is within your budget.
Coverage options and flexibility—When evaluating car insurance providers, consider the various coverage options and their flexibility. For example, if you’re looking for comprehensive insurance, look at what each provider offers. You may find that they vary a bit.
Customer service and claims handling- If and when you need to contact your insurance after an incident, the last thing you want is bad customer service and issues with claims handling. Read reviews on the internet and ask around to find current and past clients of the car insurance providers you’re evaluating. Find out about the quality of the customer service and how they handle claims. Don’t be afraid to contact them and test their customer service yourself.

How to Choose the Right Policy for You

Naturally, you want to pick the best car insurance for your specific needs.

Please consider the following to decide what the right policy for you may be:

The car you want to insure- Depending on the make, model, year, and value of the car, it may affect the insurance you want and need. If you have a really old car you may opt for third-party insurance only while you may want full coverage for your newer and more expensive vehicle. This is not a hard and fast rule though.
How often you drive- If you heavily use your vehicle you may want more coverage.
Your driving history- While anything can happen on the road, it’s a good idea to consider your driving history when choosing coverage. Do you get in a lot of accidents? On the contrary, if you have a clean driving record, you can usually be entitled to cheaper insurance.
Your environment- For example, if you think your car is likely to be damaged or broken into, consider the policy that will help you recover from these incidents. If you have a night shift or are frequently out at night, you may want to look for a policy that offers 24/7 roadside assistance.
Discounts you may be entitled to- We’ve mentioned that having a clean driving record could give you access to special discounts such as the No Claims Discount. There are a ton of other discounts out there too. For example, at General Accident, we offer a Restricted Drivers Discount of 15% if you’re the sole driver of your car.
Budget- You have to consider whether or not you can afford your insurance policy or you may risk getting in trouble. For example, if you pick a policy that you can’t afford, you miss payments and it lapses, you could get arrested for driving without insurance. In addition, you hit someone else and get in trouble for not having insurance to cover damages, medical bills, and other expenses. Consider opting for a policy that fits your budget. Remember you can switch policies later on if your circumstances change.

It’s not always easy to find the right policy to protect one of your most valuable possessions: your motor vehicle. While you are legally required to have at least third-party liability insurance, your needs and budget may attract you to other policies. First, we recommend having basic knowledge of car insurance. Then, take the time to evaluate various car insurance providers to figure out which policy is perfect for you. If you have any questions or need a quote, feel free to contact us.

What’s the process of selling a car in Barbados?

Posted on January 10, 2025April 10, 2025 by Jerome Ruiz

What's the process of selling a car in Barbados?

Maybe you’re ready to buy your dream car or switch your vehicle to one that matches your lifestyle better. Either way, you’re probably wondering how to go about selling your car. The car-selling process in Barbados can be daunting to first-time sellers. However, you can use this detailed overview as a guide to following the correct procedures and mitigating the risks associated with selling a car. Failing to follow the proper steps for a smooth transaction can lead to disputes, legal issues or financial loss.

How to Sell Your Car in Barbados

Once you decide you’re ready to sell your car, the first step is ensuring that your vehicle is in the best possible condition to attract potential buyers. You may want to give your car a detail before putting it on the market and confirm that your service is up to date. Check for minor scratches or dents that need to be repaired or factored into your pricing strategy. When determining a fair price, you can also check the price of similar cars on websites, social media marketplaces or in the local newspaper to compare.

Now you are ready to find a suitable buyer.

You can opt to place an ad in the local paper, post your vehicle on social media, or place a for sale sign on your car. In addition, you can let your network – friends, families and co-workers know that your vehicle is for sale and inquire if they’re interested or know anyone else who may be. You’d be surprised how effective this can be but ultimately it’s up to you to do your due diligence to vet interested people and make your selection. When advertising your vehicle, include clear pictures and key details such as the make, model, year and mileage of the car. Advise buyers on the condition of the vehicle, your asking price and how they can contact you if interested. Once you gather a list of potential buyers, you can make arrangements to meet in a safe, public location so that persons can view the vehicle, test drive and ask any other relevant questions. Always consider that buyers may offer a price under your asking so be prepared to negotiate and have a minimum price in mind.

Complete the Necessary Paperwork

In Barbados, transferring ownership of a vehicle involves some specific steps. Here’s what you’ll need:

Transfer of Ownership Form (Form RF9): This is required by the Barbados Revenue Authority (BRA). Both you and the buyer must fill this out and sign it.
Certificate of Roadworthiness: This is necessary to confirm the car is in a drivable condition. If it’s close to expiring, renew it before the sale.
Insurance Coverage: The buyer must show proof of insurance before the car can be legally transferred.
Bill of Sale: Draft a simple agreement outlining the terms of the sale, including the agreed price, date of sale, and signatures from both parties.
Vehicle Registration Certificate: Hand this over to the buyer after completing the sale.

Visit the Barbados Revenue Authority to officially transfer ownership. The buyer is responsible for paying the transfer fee, but ensure all forms are completed correctly to avoid delays.

Once you pick a buyer, according to the Barbados Road Code, you must:

Give notice of the change of ownership of the vehicle in writing to the Licensing Authority for the parish in respect of which the motor vehicle is licensed.
Complete the Transfer of Ownership Form required by the Barbados Revenue Authority
Inform the Licensing Authority of the name and address of the new owner of the vehicle
Return to the Licensing Authority the registration card issued in respect of such motor vehicle

You should also let the Licensing Authority know if you intend to keep the registration number. You can access the forms to sell your vehicle here.

You can also visit the Barbados Revenue Authority website to fill out the forms to apply for vehicle transfer or first-time registration.

License numbers can be reserved for a specific period, so check with the BLA on how long they will hold your number.

Risks and Challenges Involved in Selling a Car

There are inherent risks and challenges involved with selling a car.

Some risks and challenges you may face trying to sell your car include:

Indecisive potential buyers – You may have potential buyers stringing you along with no real intention of purchasing the car. This can be time-consuming and frustrating as you navigate test-driving sessions, phone calls, and inspections by their mechanics.
Length of time to sell – Depending on the make, model, state, and price of your car, you may have difficulty selling it. To mitigate this problem, try to find out the retail price of the car, be realistic, and regularly maintain your car.
Fraudulent buyers – Be wary of people or companies encouraging you to pay a deposit or those offering you the upfront cost using sketchy means. You have to be on the lookout for bad cheques and fake escrows. You may also be exposed to premium rate scams via text messages or become the victim of phishing emails seeking payment information.
Disputes from buyers- Buyers may threaten you if they change their mind, feel that you should be liable for a car issue, or due to any dissatisfaction with their purchase. You may be tied up with court disputes as well as experience harassment whether in person, over the phone, or online. While there is no foolproof way to avoid this, being honest upfront with your buyer can help them make an informed decision and manage their expectations.
Incomplete documentation- Ensure you gather all required documents before trying to sell your car to avoid hiccups in the process.

Tips for Buying and Selling a Car in Barbados

If you’re planning on buying a car in Barbados, here are some tips to help you safely find your next car:

Conduct thorough background checks on the vehicle. For example, check that the road tax is up to date and whether or not it’s been reported stolen or scrapped.
Verify ownership and ensure you get proper documentation. You’ll need proper documentation to ensure a legal sale.
Make sure you bring a mechanic to check out the vehicle. Your mechanic will be able to see issues or potential issues you can easily miss. Do not rely on the seller’s assessment of the vehicle or their mechanic.
Verify that the vehicle you are buying has the correct chassis, engine, and registration numbers by contacting the Barbados Licensing Authority.
Avoid paying for a vehicle you did not see, verify the information for, and have inspected by a third party.
Use secure payment methods such as bank transfers, credit cards, and cheques. If you’re taking cash, do the handover in a bank to have the notes checked.
Meet in safe, public locations such as a police station.
Avoid carrying large sums of cash. Doing so can make you a target and run you the risk of losing it.
Have a trusted person accompany you during viewings or test drives.

General Safety Precautions

You have to be very careful when buying and selling a car. Here are some general safety precautions to help you to protect yourself:

Keep all correspondence and agreements in writing.
Avoid sharing personal details unnecessarily.
Stay vigilant against scams or fraudulent buyers/sellers. If something is too good to be true, it probably is. Always do your due diligence.
Collect and keep receipts in a safe place.

Selling a car in Barbados comes with its unique risks and challenges, but can be a rewarding experience. Always ensure you do your due diligence and do everything legally and safely. Vet your buyers carefully, keep your car in your possession until you’ve been fully paid, and be on the lookout for fraudsters.

Once your car is sold and you’re looking for insurance for your new ride, consider General Accident. We’re ready to help you protect your new, prized possession. Fill out this form for a quick quote today.

Car Insurance in Barbados: Is Paying Monthly an Option? Flexibility, Benefits, and Considerations

Posted on December 24, 2024April 10, 2025 by Jerome Ruiz

Car Insurance in Barbados: Is Paying Monthly an Option? Flexibility, Benefits, and Considerations

Navigating car insurance options can feel overwhelming, especially when it comes to managing payments. For many in Barbados, the usual question is “Can I pay car insurance monthly?” the long and short answer is yes you can! General Accident (GenAc) Barbados, offers flexible payment options that can make managing your car insurance more convenient and budget-friendly. Let’s explore how monthly car insurance payments work, the benefits, and the considerations for choosing this payment method.

Can I Pay Car Insurance Monthly?

Yes, you can! General Accident Barbados provides the option to pay your car insurance premium in monthly installments. This flexibility allows you to spread out the total cost, making it easier to manage your finances and/or Budget.

How Does Monthly Car Insurance Payment Work?

Monthly car insurance payment plans are straightforward. It works by dividing your annual premium into 12 equal installments. So, instead of paying a lump sum at the start of your policy term, you’ll make smaller, regular payments each month typically following these steps:

Initial Payment: A down payment is usually required at the start of your policy.
Recurring Payments: The remaining balance is divided into equal monthly installments. These can be set up via direct debit, standing order, or other convenient payment methods.

Terms & Conditions: The payment plan is aligned with your policy term, ensuring coverage is continuous as long as payments are up-to-date.

What Are the Benefits of Paying Car Insurance Monthly?

Paying your car insurance monthly comes with several benefits, these include:

Budgeting Ease: Smaller, predictable payments can make budgeting easier.
Cash Flow Management: Monthly payments free up cash that can be used for other immediate expenses.
Improved Cash Flow: You can manage your budget more effectively by spreading costs over time.
Convenience: Set up automated payments to avoid missing due dates.

Flexibility: Adjust your budget without compromising on essential coverage.

Is There an Extra Cost for Paying Monthly?

While the convenience of paying monthly seems attractive, it’s important to note that there may be an additional cost. GenAc may charge a small fee for the flexibility of paying in monthly installments. This fee is often outweighed by the benefits of spreading out your payments. At GenAc, we ensure transparency by outlining all costs upfront, so you know exactly what to expect. Therefore, the additional cost may include:

Interest or Fees: A small service fee may be added to each installment.
Total Premium Cost: Paying monthly can sometimes result in a slightly higher overall premium than paying in full upfront.

How to Set Up Monthly Payments for Your Car Insurance

Setting up monthly payments with GenAc is straightforward:

Contact GenAc: Reach out to our customer service agents to voice your interest in monthly payments when purchasing or renewing your policy.
Provide Payment Details: Share your bank account information for automated payments or arrange other suitable methods.
Agree on Terms: Discuss and agree on the payment plan that best suits your needs.

What Are the Alternatives to Paying Monthly?

If monthly payments aren’t suitable for you, the other options include:

Quarterly Payments: Spread payments over three or four installments annually.
Biannual Payments: Split your premium into two equal payments.
Full Payment: Pay the entire premium upfront to avoid additional fees.

Can I Change My Payment Frequency During the Policy Term?

To us, flexibility is key. If your financial situation changes, you have the option to adjust your installment plan. You can switch from monthly payments to another frequency or vice versa. However, these adjustments may depend on your policy terms and the remaining balance. To do so, contact our customer service team to discuss modifying your plan.

Does Monthly Payment Affect My Insurance Coverage?

Rest assured, choosing a monthly payment plan does not affect your coverage. Your policy remains the same, with all the benefits and protections, regardless of the payment frequency. As long as payments are made on time, you’ll enjoy the same comprehensive perks.

How to Budget for Monthly Car Insurance Payments

Budgeting for monthly car insurance payments involves the following:

Tracking Expenses: Keep a record of all your monthly expenses to understand your financial situation.
Setting Aside Funds: Allocate a specific amount each month for your insurance payment to avoid missing an installment.
Automate Payments: Set up auto-debit to avoid missed payments.

Emergency Fund: Save a small buffer for unexpected expenses to ensure timely payments.

Why Choose General Accident Barbados for Monthly Car Insurance Payments?

At GenAc, we prioritize your convenience and peace of mind. Our flexible payment plans are designed to suit your lifestyle, providing the coverage you need without financial strain. Paying car insurance monthly is not only possible but also comes with numerous benefits.

Whether you choose monthly, quarterly, or annual payments, We will ensure a seamless process with excellent customer service.

Explore Flexible Payment Options Today

If you’re ready to simplify your car insurance payments, GenAc Barbados is here to help. Visit our website or contact us for more information about setting up a payment plan that works for you.

Take control of your car insurance with payment options that match your needs!

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Why Home Insurance is a Smart Investment: A Guide for Barbados Homeowners

Posted on December 12, 2024 by Jerome Ruiz

Why Home Insurance is a Smart Investment: A Guide for Barbados Homeowners

Congratulations! You’re now a homeowner. We know it was no easy feat, but we’re proud of you for accomplishing this massive milestone. While you’re busy shopping around for the perfect furniture and paint colours to adorn your new home, it’s important to take some time to shop around for the perfect home insurance or homeowners insurance to invest in. While home insurance may seem unnecessary, it’s a smart investment for every homeowner in Barbados. Imagine the peace of mind you’ll have knowing that you’ll be protected if your home is damaged. Thinking about bad things happening in your new home is unpleasant, but it’s always better to be safe than sorry. Here’s what you need to know about home insurance and why it’s a smart investment for Barbados homeowners.

What is Home Insurance?

Home insurance, or homeowner’s insurance as it is more popularly called, is a type of property insurance that safeguards your home and its contents against damage caused by specific perilous incidents such as fire.

That means depending on your home insurance policy, you may receive compensation if your home or its contents were damaged by fire, theft, or other unfortunate incidents. The alternative is rebuilding from scratch or replacing your items solely using your own money.

While homeowner’s insurance is usually a choice, lenders often require it when you mortgage your home. Even if you’re not required to have home insurance, it’s still highly recommended, especially for the coverage it can offer you in times of peril.

What Does Home Insurance Cover?

Home insurance coverage depends on the policy you have from your insurance provider. For example, a more basic coverage may cover fire, but a more comprehensive coverage can include things like earthquakes. However, the key components of a standard home insurance policy include coverage for property damage, theft, third-party liabilities, and burglary.

At General Accident Insurance, our home insurance is the most comprehensive insurance policy for homeowners; we offer coverage for your house, contents, and valuable property against:

Fire & Lightning
Hurricane, Cyclone, Tornado or Windstorm
Flood
Earthquake & Volcanic Eruption
Riot & Strike
Malicious Damage
Explosion
Impact from Aircraft & other Aerial Devices
Impact by Road Vehicles, Horses or Cattle
Bursting or Overflowing of Water Tanks, Apparatus or Pipes
Theft
All Risks cover for certain items
Burglary
Legal liability to third parties

Average Cost of Home Insurance in Barbados

The cost of home insurance varies between the insurance providers and the type of insurance you want to purchase. For example, a comprehensive plan costs more than a basic homeowner’s insurance package. Regardless of the insurance package you choose, the cost of insurance has steadily risen in Barbados, according to The Terra Group.

The Terra Group reasons that the rising cost of home construction is raising the rates of home insurance in Barbados. In 2020, the cost to build a 2,500-square-foot home in Barbados was BBD$625,000, while the same home would cost BBD$725,000 in 2023.

Naturally, the cost to fully insure a home would increase. It will also cost you more to rebuild if your home gets damaged.

That’s one of the reasons why having home insurance will always be worth it. You won’t be able to control perilous events such as lightning, burglary, or hurricane damage, but knowing that you won’t have to start from scratch will give you peace of mind.

How to Prepare for an Earthquake

Secure Your Property

Reinforce Your Home: Ensure that your home is built to withstand seismic activity. This might include retrofitting older structures, reinforcing the foundation, and securing heavy furniture to walls. Ensure your home meets local building codes; check with the Department of Emergency Management.
Review Your Insurance Policy: Insure your property with GenAc – At GenAc Barbados property insurance provides protection against most risks to property, such as fire, theft and some weather damage. You should also consider adding earthquake coverage to your policy.
Create an Emergency Kit: Stock up on essentials such as water, non-perishable food, medications, flashlights, batteries, radios, important documents a First-Aid Kit – accessible and functional.
Secure Heavy Items: Store heavy items on lower shelves. Ensure furniture, water tanks, and gas cylinders are properly secured to your walls and floors. Ensure all family members know how to use this equipment and shut off electricity, gas, and water.
Develop a Family Plan: Practice earthquake safety drills regularly with your family so everyone knows what to do. Ensure all family members know how to reach each other after an earthquake, especially if phone lines are down.

Prepare Your Vehicle:

Park Safely: When parking your vehicle, avoid areas that might be vulnerable during an earthquake, such as under bridges or near buildings.
Emergency Supplies: Keep an emergency kit in your car, including a spare tire, tools, bottled water, and a flashlight.

Business Preparedness

To protect your business from revenue loss and asset damage, implement a comprehensive earthquake preparedness plan. This should include:

A tailored commercial property insurance policy with GenAc
Protocols for actions during and after an earthquake
Evacuation routes and staff meeting locations
Communication plans for internal and external updates
Documentation of all business assets
Emergency contact information
Supply kits
A workplace hazard survey

Additionally, contract a structural engineer to inspect your facility to identify and prioritize necessary strengthening measures, such as:

Installing steel bracing and shear walls
Reinforcing columns and foundations
Adhering to safety codes for construction and renovations
Following building safety codes when constructing a facility or making renovations
Inspecting non-structural systems, such as air-conditioning, communications, and pollution control systems.

Learn more about GenAc’s Home Insurance

At GenAc, we want to help you protect one of your most expensive and precious investments, your home. We offer a comprehensive insurance policy that covers events such as burglary, theft, third-party liability, all risks, and other perils such as hurricanes or fires.

Therefore, if your home or the contents of your home or valuable property is subjected to any covered peril, you can make a claim and receive compensation to either fix your home or replace the contents.

We also offer homeowner discounts for homeowners who sign up for our policy. For example, if you have hurricane shutters or a burglary system in place, you can get up to 10% off your policy.

Start your journey to peace of mind as a homeowner with a quote from General Accident Insurance or come to speak with us in person. We will need to know details about your home and information about you, the homeowner, and conduct a home inspection in some cases. If you have any questions, don’t hesitate to contact us.

For more hazard preparedness tips, browse our blog.

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Comprehensive Earthquake Safety Guide for Barbados

Posted on September 18, 2024September 18, 2024 by Jerome Ruiz

Comprehensive Earthquake Safety Guide for Barbados

In regions prone to earthquakes, it’s crucial to be prepared for the unexpected. Understanding how to protect your property, vehicles, and loved ones can make a significant difference in the aftermath of a seismic event. As a trusted general insurance provider, we understand that the best defense against natural disasters is appropriate preparation and education so that our customers are equipped with the knowledge they need to stay safe and secure. Earthquakes are scary but knowing what to do before, during and after can help you and your loved ones stay safe. Here are some essential facts about earthquakes, along with practical advice on how to prepare, what to do during an earthquake, and how to cope after the shaking stops.

Understanding Earthquakes

What is an earthquake?

Earthquakes are caused by the sudden release of energy in the Earth’s crust. The Cambridge Dictionary defines earthquakes as a sudden violent movement of the earth’s surface, sometimes causing great damage. This can happen due to natural processes like the movement of tectonic plates, which are large sections of the Earth’s outer shell. The boundaries where these plates meet are called fault lines. When stress builds up along these fault lines and exceeds the strength of the rocks, it results in a rupture or slip, causing the ground to shake. The intensity of an earthquake is measured using the Richter scale, with higher numbers indicating more powerful quakes. Other causes can include volcanic activity, landslides, and human activities such as mining or reservoir-induced seismicity.

Where Do Earthquakes Occur?

Earthquakes can occur anywhere in the world, but they are most common along tectonic plate boundaries. Scientists recognize between seven and twelve major tectonic plates, plus smaller ones, named after continents (e.g., North American Plate), oceans (e.g., Pacific Plate), and regions (e.g., Caribbean Plate). The main tectonic plate boundaries are: These plates move slowly, at 2 to 15 cm (a few inches) per year, and interact through three types of movements: spreading (divergent), colliding (convergent), and sliding (lateral), all contributing to seismic activity. Regions with active tectonic boundaries are more prone to frequent and intense earthquakes, although earthquakes can also occur in intraplate areas far from active boundaries.

What Are Earthquake Aftershocks?

Aftershocks are smaller tremors that follow the main earthquake. They occur as the Earth’s crust adjusts to the new stress distribution after the initial rupture. While they are typically less powerful than the main quake, aftershocks can still cause significant damage, especially to structures already weakened by the primary earthquake. The frequency and intensity of aftershocks generally decrease over time, but they can continue for days, weeks, or even months after the main quake. It’s important to remain cautious and prepared for these aftershocks as they can impact damaged buildings and infrastructure. While earthquakes can be unpredictable, being prepared can significantly reduce the risks to your property and loved ones.

Now with a better understanding of what earthquakes are, let’s take a look at how to prepare for one.

How to Prepare for an Earthquake

Secure Your Property

Reinforce Your Home: Ensure that your home is built to withstand seismic activity. This might include retrofitting older structures, reinforcing the foundation, and securing heavy furniture to walls. Ensure your home meets local building codes; check with the Department of Emergency Management.
Review Your Insurance Policy: Insure your property with GenAc – At GenAc Barbados property insurance provides protection against most risks to property, such as fire, theft and some weather damage. You should also consider adding earthquake coverage to your policy.
Create an Emergency Kit: Stock up on essentials such as water, non-perishable food, medications, flashlights, batteries, radios, important documents a First-Aid Kit – accessible and functional.
Secure Heavy Items: Store heavy items on lower shelves. Ensure furniture, water tanks, and gas cylinders are properly secured to your walls and floors. Ensure all family members know how to use this equipment and shut off electricity, gas, and water.
Develop a Family Plan: Practice earthquake safety drills regularly with your family so everyone knows what to do. Ensure all family members know how to reach each other after an earthquake, especially if phone lines are down.

Prepare Your Vehicle:

Park Safely: When parking your vehicle, avoid areas that might be vulnerable during an earthquake, such as under bridges or near buildings.
Emergency Supplies: Keep an emergency kit in your car, including a spare tire, tools, bottled water, and a flashlight.

Business Preparedness

To protect your business from revenue loss and asset damage, implement a comprehensive earthquake preparedness plan. This should include:

A tailored commercial property insurance policy with GenAc
Protocols for actions during and after an earthquake
Evacuation routes and staff meeting locations
Communication plans for internal and external updates
Documentation of all business assets
Emergency contact information
Supply kits
A workplace hazard survey

Additionally, contract a structural engineer to inspect your facility to identify and prioritize necessary strengthening measures, such as:

Installing steel bracing and shear walls
Reinforcing columns and foundations
Adhering to safety codes for construction and renovations
Following building safety codes when constructing a facility or making renovations
Inspecting non-structural systems, such as air-conditioning, communications, and pollution control systems.

What to do during an earthquake

Drop! Cover! Hold On!

Drop to your hands and knees to stay low and avoid being knocked over. Cover your head and neck with one arm.

If a sturdy table or desk is nearby, crawl under it for protection.
If no shelter is available, crawl next to an interior wall, away from windows.
Remain on your knees, bend over to protect vital organs, and Hold On until the shaking stops.
If you are outside, move away from buildings, streetlights, and utility wires. Find an open area where nothing can fall on you.
If you are in a vehicle, Pull Over Safely to a clear area, away from buildings, trees, overpasses, and utility lines. Stay inside the vehicle until the shaking stops.

What to Do After an Earthquake

Check for Injuries:
- Administer First Aid: Check yourself and others for injuries. Provide first aid if necessary and seek emergency medical assistance for serious injuries.

Inspect Your Property:
- Check for Damage: Inspect your home for structural damage, gas leaks, and water line breaks. If you suspect any issues, turn off utilities and report them immediately.
- Document the Damage: Take photos and document any damage to your property or vehicle. This will be essential when filing an insurance claim.

Communicate:
- Reach Out: Let your family and friends know you are safe by using text messages or social media to avoid congesting phone lines.
- Stay Informed: Tune into a transistor radio for emergency updates and instructions from authorities.
- Check Online: Visit the Department of Emergency Management website for the latest information.

Prepare for Aftershocks:

- Stay Safe: Be ready for additional tremors and avoid landslide-prone areas.

What NOT to Do During and/or After an Earthquake

Do not run outside during an earthquake, as the exterior of buildings, roofs, and balconies can be hazardous.
Do not turn the gas back on if you’ve turned it off; wait for the gas company.
Avoid using matches, lighters, camp stoves, barbecues, or electrical equipment until you confirm there are no gas leaks, as these could ignite leaking gas.
Use your telephone only for medical or fire emergencies to keep lines open for emergency services. If the phone isn’t working, send someone for help.
Do not rely on fire-fighters, police, or paramedics, as they may not be available.
Stay Away from Power Lines: Never touch fallen power lines.
Keep Streets Clear: Avoid sightseeing and leave the streets open for emergency and rescue vehicles.
Do Not Move the Injured: Don’t attempt to move seriously injured individuals unless they are at risk of further harm.

Keep the conversation going with your children

After an earthquake, it is crucial to maintain an open dialogue with your children to help them process their emotions and feel supported during this challenging time.

Encourage your child/children to express their feelings about the earthquake and share any worries or fears they may have. Let them know you are actively listening and genuinely care about their emotions.
Offer Reassurance
Help them understand that earthquakes and their effects are temporary and natural, not anyone’s fault. Provide comfort through quality time and extra hugs to reinforce your support and affection.
Engage your children in age-appropriate tasks, such as helping to organize the emergency kit or participating in clean-up efforts and pass on the knowledge and preparedness required should a disaster such as this happen again.

Being prepared for an earthquake is not just about safeguarding your property and vehicles—it’s about ensuring the safety and well-being of your loved ones.

General Accident is committed to helping you “Future Proof Tomorrow” by providing the coverage and support you need to navigate life’s uncertainties. Remember, we’re here to help you every step of the way.

Stay safe, stay prepared, and know that with the right precautions, you can weather any storm—or shake—with confidence.

For more hazard preparedness tips, browse our blog.

Suggested reading: How To Prepare For a Hurricane in Barbados

10 Hurricane Season Preparedness Tips To Protect Your Home

Understanding the Importance of Insurance in Barbados

Posted on August 22, 2024September 17, 2024 by Jerome Ruiz

Understanding the Importance of Insurance in Barbados

Life can be unpredictable. Unforeseen events can lead to financial loss. At GenAc Barbados we understand there are many factors that persons can face such as the loss of a job, family suffering, or hospitalization. As a result, you can experience severe anxiety if you do not have a proper safety net for yourself, your loved ones, or your bank accounts. As a business owner, you too are at risk of theft, property damage or loss of goods. Investing in an insurance policy is a great choice that someone can make in their life.

The Cambridge Dictionary defines insurance as an “agreement in which you pay a company money and they pay your costs if you have an accident, injury etc.” In this blog post, we will review the importance of insurance in Barbados.

Understanding the Importance of Insurance in Barbados

According to the Central Bank of Barbados, the insurance sector is the largest financial industry in Barbados after banking. Established in 1840, it has channelled savings into productive economic areas. After Barbados gained independence, insurance sector regulation began in 1972 with the first Insurance Act. This was followed by a second Insurance Act in 1996, aimed at enhancing policyholder protection and expanding regulatory measures. The domestic insurance sector has steadily grown and remains well-established.

Types of Insurance in Barbados

Auto Insurance

Auto insurance in Barbados is designed to provide financial protection in the event of accidents, damage, or theft involving your vehicle. At GenAc Barbados we provide various types of auto insurance coverage which include:

Bodily injury and property damage liability coverage for damage caused to other people or property.
Personal injury protection to cover medical expenses and other damages.
Collision and comprehensive coverage for damage done to your vehicle in collisions, and in non-collisions (i.e., fire, vandalism, or theft).

Health Insurance

In 2008, the Pan American Health Organization (PAHO) reported that 25% of Barbadians were covered by health insurance. Health insurance in Barbados is crucial for managing medical expenses and accessing healthcare. The main types are:

Private Health Insurance: Covers hospitalization, specialist consultations, prescription drugs, and outpatient care.
Public Health Insurance: Provided by the government through facilities like Queen Elizabeth Hospital, offering basic services with some out-of-pocket costs.
Supplemental Health Insurance: Enhances public coverage or provides access to private healthcare services.

Home Insurance

Home insurance in Barbados on the other hand is designed to protect property owners from financial loss due to various risks. GenAc Barbados offers property insurance to suit the needs of both home and business owers.

Types of Coverage

Building insurance covers structural damage to your home from events like fire, hurricanes, or vandalism, and may also protect additional structures such as garages and fences.
Contents insurance: protects personal belongings inside your home, including furniture and electronics, from theft or damage. high-value items like jewellery may need extra coverage.
Liability insurance: covers legal costs and claims for injuries or property damage on your property, plus medical payments for injuries.
Additional living expenses: Provides coverage for temporary housing and extra costs if your home is uninhabitable due to a covered event.

Business Insurance

The right business insurance policies help you to protect your business from unforeseen mishaps. From an injured employee, fires, or natural disasters to a vehicular crash, business insurance can protect you from financial loss in the event of a crisis or accident.

Types of Business Insurance

Public Liability Insurance covers claims from the public for injury or property damage caused by your business.
Professional Indemnity Insurance protects directors and professionals from losses due to errors, negligence, or breaches of duty.
Business Interruption Insurance compensates for lost income and extra costs if an unexpected event halts operations.
Contractor’s Insurance covers damage to construction projects, equipment, and third-party liabilities.
Buildings and Contents Insurance protect against damage or loss of property and stock.
Employer’s Liability and Workers’ Compensation cover work-related injuries and illnesses, while Shipping Insurance covers goods in transit.

Why Insurance Matters

We’ve highlighted five types of insurance currently available in Barbados and their benefits. If you are not yet convinced, here are a few additional reasons why insurance matters:

- Financial Safety Net: Insurance offers crucial protection against unforeseen events, ensuring your finances stay intact and providing peace of mind.
- Legal Compliance: It helps you meet legal obligations, avoiding potential fines or legal troubles.
- Risk Management: By mitigating risks, insurance shields you from significant financial setbacks, making it a smart strategy for managing life’s uncertainties and protecting your assets.

Advantages of Comprehensive Coverage

Taking the steps to fortify yourself and your possessions against potential loss is wise but all coverage options are not made equal. While ultimately your coverage should depend on your specific needs, comprehensive coverage boasts a host of benefits worth considering.

Shield from Surprises: Comprehensive insurance guards against unexpected events, offering a safety net when you need it most.
Emergency Backup: Provides crucial support during crises, ensuring you’re covered when emergencies strike.
Asset Protection: Safeguards your valuable assets and investments, giving you peace of mind and securing your financial future against unforeseen losses.

Choosing the Right Insurance Provider

When selecting an insurance provider, focus on reputation—choose a company with a solid track record of reliability and trustworthiness. Evaluate their coverage options to ensure they offer plans that meet your specific needs and provide comprehensive protection. Assess their customer service by looking for providers known for responsive support and easy claims handling. In Barbados, compare different insurers to find the best combination of coverage, cost, and service. Researching thoroughly will help you secure the best insurance for peace of mind and financial security.

Why choose General Accident Insurance Company (GENAC) for your insurance needs

After conducting your research we are sure you will find GENAC to be the best option to provide the coverage you need. GENAC provides several types of insurance products:

Motor vehicle insurance
Property insurance
Liability insurance
Engineering insurance
Bond insurance

Benefits of a GENAC Insurance Policy

Motor Vehicle Insurance Perks:

No Claims Discount: Save over time with a discount for driving claim-free.
Restricted Driver Discount: Get 15% off if only you drive your vehicle.
Limited Driver Discount: Enjoy 10% off if you and up to two others are the only drivers.
Multi-Vehicle Discount: Score a 10% discount when insuring multiple vehicles.

Car and Home Insurance Savings

Bundle Discount: Combine car and home insurance for a 10% discount.
Monitored Burglar Alarm: Get a 10% discount with a monitored alarm.
Unmonitored Burglar Alarm: Receive a 5% discount with an unmonitored alarm.
Hurricane Shutters: Benefit from a 10% discount with hurricane shutters.
Credit Union Member: Enjoy a 10% discount if you are a credit union member.

General Accident Insurance Company Barbados makes insurance easy with straightforward policy selection and customization. They offer dedicated customer support and claims assistance, ensuring a smooth process. Also, they provide ongoing policy management and updates to keep your coverage current.

For more insurance information, browse our blog.

10 Safety Tips When Driving with Baby/Toddlers/Kids

How To Prepare For a Hurricane in Barbados

Posted on July 11, 2024August 15, 2024 by Jerome Ruiz

How To Prepare For a Hurricane in Barbados

June marks the start of the hurricane season in the Caribbean. As such, we all must take the necessary steps to be safe during this period. Disaster preparedness is essential as it helps you to minimize the impact that a hurricane has on your family and livelihood.

When you are planning for a hurricane always consider the following: risk assessment, emergency kit, evacuation plan, communication plan, home preparation, insurance review, and post-hurricane evacuation plan.

Risk Assessment

Understand the hurricane risks in your area including potential flood zones and historical hurricane paths. You may contact the Office of Emergency Management about community evacuation plans.
Establish warning, evacuation and facility shutdown procedures. Make plans for assisting employees who may need transportation.
Hurricane Watch: If a hurricane is predicted to come to the island within 24 to 36 hours, tune to local radio and television stations for additional information as an evacuation may be necessary.
Hurricane Warning: A hurricane will strike land within 24 hours. Take precautions at once and evacuate immediately if advised.
Plan to protect windows. Permanent storm shutters offer the best protection. As a second option, cover windows with 5/8” marine plywood.
Consider the need for backup systems: Portable pumps to remove floodwater, alternate power sources, such as generators or gasoline-powered pumps (Not in enclosed spaces), battery-powered emergency lighting.
Prepare to move documents, computers and other items within your facility to another location.
Be aware of the hurricane categories.

What are the hurricane categories?

Hurricanes are categorized using the Saffir-Simpson Hurricane Wind Scale, which classifies hurricanes into five categories based on their sustained wind speeds. Here are the categories:

Category 1:

Wind speeds: 74-95 mph (119-153 km/h)
Damage: Very dangerous winds will produce some damage. Well-constructed frame homes could have damage to roof, shingles, vinyl siding, and gutters.

Category 2:

Wind speeds: 96-110 mph (154-177 km/h)
Damage: Extremely dangerous winds will cause extensive damage. Risk of injury and death from flying and falling debris is possible.

Category 3 (Major):

Wind speeds: 111-129 mph (178-208 km/h)
Damage: Devastating damage will occur. There is a high risk of injury or death due to airborne debris. Many trees will be snapped or uprooted, blocking numerous roads.

Category 4 (Major):

Wind speeds: 130-156 mph (209-251 km/h)
Damage: Catastrophic damage will occur. Well-built framed homes can sustain severe damage with loss of most of the roof structure and/or some exterior walls.

Category 5 (Major):

Wind speeds: 157 mph or higher (252 km/h or higher)
Damage: Catastrophic damage will occur. High percentage of framed homes will be destroyed, with total roof failure and wall collapse. Most areas will be uninhabitable for weeks or months.

These categories help to assess the potential damage and necessary precautions for affected areas.

Emergency Kit

These are items that you will need in your emergency kit.

Drinking water- Stock up on drinking water to last three to five days at least.
Food- Purchase non-perishable food along with a manual can opener, enough for at least five days. Keep disposable cutlery, cups and plates. Examples of non-perishable items include:
- Drinking water
- Dry cereal
- Canned fruits
- Canned vegetables
- Canned juice
- Canned beans
- Peanut Butter
- Bread
- Apples
- Oranges
- Crackers
- Nuts
- Granola and energy bars
- Rice
- Pasta
- Seasoning
- Oats

Batteries, lights- Keep enough batteries to power a flashlight and portable radio. Also, a solar-powered light is handy in providing a renewable power source for your mobile phone or radio. Keep a sufficient supply of candles, lighters and matches and store in a dry place.
First aid kit- This should contain whatever essential medicine your family needs such as pain killers, allergy medication, asthma inhalers, bandages, antibacterial salve, sleep aids, nausea medication etc. Take extra care for persons needing special medication such as diabetics. Women should keep feminine items such as maxi pads or tampons as well as personal hygiene items.
Documents-Make sure to have your original documents in a small safe or waterproof, portable container which you can take with you at a moment’s notice. This should contain essential documents such as birth certificates, passports, health cards, legal and financial documents. It is also handy to keep some emergency cash in case banks or ATMS are temporarily inaccessible
Tool-It might be handy to have basic tools for any quick repairs, such as wrenches and pliers, screwdrivers and other items such as duct tape and perhaps a small sewing kit. If you can, keep an extra gas tank and a two-hob stove for preparing quick meals and boiling drinking water.
Clothes-Keep a few items of clean clothes such as jeans, shirts, warm clothing, underwear, shoes and socks. Waterproof jackets, umbrellas and rain boots are also good to have.
Emergency information– Have emergency contact numbers close so you can access updates or receive help quickly.

Evacuation Plan

Identify evacuation routes and have a plan for where you will go. Avoid waiting until the hurricane has landed before evacuating. Ensure all family members are aware of the plan and practice it regularly. Know the location of local shelters and have a plan for pets, as not all shelters accept animals. Also, if you are a motorist, check that you have a full tank of petrol before you leave your residence.

For persons who live in Bridgetown, here are the eight shelters to consider.

Shelter Name	Parish
Black Rock Seventh Day Adventist Church	ST. MICHAEL
Combermere School	ST. MICHAEL
Dalkeith Methodist Church	ST. MICHAEL
St. Barnabas Day Care Centre	ST. MICHAEL
Lloyd Erskine Sandiford Centre	ST. MICHAEL
Harrison College	ST. MICHAEL
The University of the West Indies	ST. MICHAEL
Faith Wesleyan Holiness Church	ST. MICHAEL

Communication Plan

Establish a communication plan with family and friends. Designate an out-of-town contact who can help coordinate and check on everyone’s safety. Ensure everyone knows how to use emergency contact numbers and keep mobile phones charged.

Home Preparation

Secure your home by installing storm shutters or boarding up windows, strengthening garage doors, and carrying outdoor furniture inside. Trim trees and shrubs to reduce the risk of falling branches. Ensure your roof is in good condition and secure any loose items.

Insurance Review

Review your insurance policies to ensure you have adequate coverage. General Accident provides a property insurance policy. Homeowners’ insurance is the most comprehensive coverage for your house, contents and valuable property. Furthermore, once there are shutters on the windows of your house, you will also receive a 10% discount.

Post-Hurricane Plan

Have a plan for what to do after the hurricane passes, including checking on neighbours, assessing property damage safely, and avoiding floodwaters and downed power lines.

By following these steps and regularly updating your hurricane preparedness plan, you can significantly improve your ability to protect yourself, your family and your property during a hurricane.

For more information on property insurance, browse our blog.

Motor Vehicle Registration in Barbados: A Complete Guide

Posted on June 21, 2024June 21, 2024 by Jerome Ruiz

Motor Vehicle Registration in Barbados: A Complete Guide

There is nothing like getting your first vehicle. The feeling of independence and convenience can be enticing, but this also comes with responsibility. There are necessary steps that you must take before you can own a vehicle; one of these includes completing your motor vehicle registration. Motor vehicle registration can be defined as legal documentation that signifies that the vehicle belongs to you. The motor vehicle registration highlights that the owner driver has the official right to travel on the Barbados roadways.

How to check your vehicle registration status?

Two of the ways in which you can check your motor vehicle status is accessing the revenue authority’s website and inserting your license plate and vehicle registration number.

Steps to register your vehicle

Go on the online application form on the Barbados Revenue Authority web page.
It will be divided into two sections. Read the instructions carefully and follow the instructions to complete the form.
If you are unable to complete the form all at once, you may save the information and return at a later time.
Important documents for registration
Certiﬁcate of Weight Unladen of a Vehicle (Weight Certiﬁcate)
Single Administrative Document (Customs Document)
Letter of Sale addressed to the Chief Licensing Officer, Barbados Licensing Authority
Insurance Certiﬁcate or cover Note with at least 7 days validity stating type of registration
Valid Photo Identiﬁcation
Financial Institution Letter (if applicable)
Road Worthy Certiﬁcate (if applicable)
Special Licence (dependent on weight of vehicle) (if applicable)
Before you submit the application, ensure that all your necessary documents are provided.
Once you have provided all the documentation, submit the application.
Check your notification from emails and SMS messages to stay up to date on the progress of your application.

What is the Electronic Vehicle Registration (EVR) programme?

The EVR programme is a government-controlled system that monitors the registration and insurance compliance of vehicles on Barbados’ roads.

The radio frequency identification tag (RFID tag), is an electromagnetic sticker is placed on your windshield and indicates that the vehicle is registered legally with the Barbados Licensing Authority, and that your insurance is current.

Motorists do not have to pay to get the EVR process done.

Your personal information including your name, address, vehicle registration, chassis and engine numbers, and insurance status is readable via the RFID tag only by EVR cameras. It validates that your vehicle is registered and insured.
The RFID tag can last up to ten (10) years.

The RFID tag is transferable to the new owner and your information will be erased from the tag if you choose to purchase a new vehicle.

Three EVR Centres that you can visit are:

National Cultural Foundation car park, West Terrace, St. James
Garfield Sobers Sports Complex, Wildey, St. Michael (Gymnasium car park)
Oistins car park, behind Granny’s Restaurant, Oistins, Christ Church

What are the documents need submit to complete the EVR process?

Private vehicle owners must submit a printed copy of these documents to the EVR Centre:

Proof of insurance
Proof of address (utility bill, bank, or credit union statement)
Your identification (ID) card, valid driver’s licence, or a valid form of picture ID.

You may use a representative if you do not have proof of address. However, the representative must be able to indicate via letter that you live with them at the same residence. He or she should provide valid ID and provide a valid form of identification. Your representative will be held penalized if they provide false information.

You must submit a printed copy of these documents if the vehicles are company owned:

List of vehicles owned by the company & their registration numbers

Proof of insurance (certificate or cover note)

Company documents issued by Corporate Affairs and Intellectual Property Office (CAIPO)

Your representative must bring their ID, a copy of yours, and the other documentation requested. He or she should confirm your identity on your behalf and will be held liable if it is false.

All vehicles will eventually be required to be registered with the EVR system. Hence, individuals who want vehicles tagged may visit an EVR Centre of their choice to complete the EVR process.

Cost for Registration

First-time registrations for private vehicles cost four hundred dollars ($400.00).

Commercial vehicles will incur a fee of one thousand dollars ($1000.00). The renewal of commercial vehicles will also incur an annual fee.

All vehicles must be registered with the Barbados Licensing Authority (BLA) to legally drive on the road.

For more information on understanding your motor vehicle, browse our blog.

Common Car Insurance Myths Debunked

What is Bond Insurance?

Posted on May 17, 2024May 28, 2024 by Jerome Ruiz

What is Bond Insurance?

Insurance serves as a vital safety net, offering reassurance in the face of accidents, thefts, and unforeseen challenges. While traditional auto insurance is widely understood, the realm of insurance coverage extends far beyond vehicular protection. From travel and property to financial safeguards, the landscape of insurance options is expansive and diverse.

In this blog post, we will explore the concept of bond insurance, shedding light on its benefits and why it’s a valuable investment for bond issuers.

What is bond insurance?

The evaluation of a debt instrument considers the financial strength of the entity issuing it. If an issuer is perceived as risky, their credit rating decreases, leading investors to expect higher returns from investing in their debt securities. Consequently, such issuers face higher borrowing costs compared to more stable and less risky companies. To secure a more favorable rating and attract a larger pool of investors, companies often resort to credit enhancement measures.

Credit enhancement refers to actions taken by a borrower to bolster its creditworthiness in order to negotiate better terms for its debt. One such approach involves bond insurance, which typically results in the rating of the insured security being determined by the higher of either the insurer’s claims-paying rating or the rating the bond would receive without insurance, also referred to as the underlying rating.

Bond insurance, also known as financial guaranty insurance, is a type of insurance purchased by bond issuers to guarantee scheduled payments of interest and principal on bonds in the event of a payment default by the issuer.

Here’s how it typically works:

Issuer: The issuer of the bond purchases bond insurance from an insurance company.

Insurance Premium: The issuer pays a premium to the insurance company for this coverage. This premium is typically a percentage of the bond’s face value.

Coverage: Once insured, if the issuer defaults on the bond payments, the insurer steps in to make those payments to bondholders.

Bond insurance can enhance the credit rating of a bond, making it more attractive to investors. This is because the insurance provides an additional layer of security, reducing the risk associated with investing in the bond. As a result, insured bonds often receive higher credit ratings than uninsured bonds issued by the same entity.

Type of Bond Insurance

General Accident Barbados offers three types of bond insurance to customers; Tender/Bid Bond, Performance Bond and Mobilization Bond.

Tender/Bid Bond

A bid bond guarantees compensation to the bond owner if the bidder fails to begin a project. Bid bonds are often used for construction jobs or other projects with similar bid-based selection processes. This ensures that the contractor has the experience and means to deal with the contract if awarded to him. This bond is a guarantee by the Surety/Insurer to cover the cost to the Principal in the event the contractor is unable to take up the award and the contract needs to be re-tendered.

Performance Bond

This is a financial guarantee to one party in a contract against the failure of the other party to meet its obligations. It is also referred to as a contract bond. It’s an undertaking/guarantee by the Surety/Insurer to pay compensation to the Principal if the person guaranteed by the bond, in other words the contractor, fails to fulfil his obligation under the terms of the contract to complete the performance of the contracted works and in the manner prescribed.

Mobilization Bond

This bond is required by the project owner to ensure that the funds which have been advanced to the contractor will be properly utilized for the project work only. This guarantee covers the un-recovered amount of the bond by the project owner which has not been adjusted by the contractor or the bond value whichever is lower. Mobilization Advance Bonds are usually issued from the commencement of the project and not on the running projects. An undertaking/guarantee by the Surety/Insurer to pay compensation to the Principal where the contractor has been advanced funds by the Principal to commence the work. Where an advance payment is made, the Principal needs to be sure that this will be expended on the contract.

Why should you get bond insurance?

Risk Mitigation: Bond insurance protects against the risk of default by the issuer. This can be particularly attractive for investors concerned about the creditworthiness of the bond issuer.

Enhanced Credit Rating: Insured bonds typically receive higher credit ratings than uninsured bonds issued by the same entity. This higher rating can make the bonds more attractive to investors and potentially lower borrowing costs for the issuer.

Stable Income: Bondholders rely on the regular interest payments from their investments. Bond insurance ensures that these payments are made even if the issuer defaults, providing a more stable income stream for investors.

Diversification: Including insured bonds in an investment portfolio can add diversification by reducing exposure to credit risk. This diversification can enhance the overall risk-adjusted returns of the portfolio.

Peace of Mind: Bond insurance provides peace of mind to investors, knowing that their investment is protected against default risk. This can be particularly important for conservative investors or those with a lower risk tolerance.

Access to Higher Yielding Bonds: Some investors may be willing to invest in bonds with higher yields but are deterred by the perceived risk of default. Bond insurance can make these higher-yielding bonds more palatable by providing a safety net against default.

Who is bond insurance for?

Bond insurance is for various parties involved in the bond market, including:

Bond Issuers

Companies, governments, municipalities, or other entities that issue bonds can use bond insurance to enhance the creditworthiness of their bonds. By purchasing bond insurance, issuers can potentially obtain higher credit ratings for their bonds, leading to lower borrowing costs.

Investors

Bond insurance is also for investors who seek to mitigate the risk of default on their bond investments. Insured bonds provide investors with assurance that they will receive scheduled interest and principal payments even if the issuer defaults. This can be particularly attractive to risk-averse investors seeking stable income streams.

Financial Institutions

Financial institutions such as banks and investment firms may use bond insurance to manage their risk exposure. Insuring their bond holdings can help these institutions maintain a more stable and diversified investment portfolio.

Regulators

Regulatory bodies may also have an interest in bond insurance as a means to ensure stability and confidence in the financial markets. Bond insurance can contribute to the overall risk management framework within the financial system.

Rating Agencies

Rating agencies assess the creditworthiness of bonds and other debt instruments. Bond insurance can influence the credit ratings assigned to bonds, which in turn affects investors’ perceptions of risk and potential returns.

In summary, bond insurance is a valuable tool for both investors and issuers to manage credit risk and enhance the attractiveness of bond investments. It not only ensures legal compliance but also provides an added layer of financial protection, offering peace of mind to customers and confidence in the financial system.

With your bond insurance coverage GenAc guarantees scheduled payments of interest and principal on a bond or other security in the event of a payment default by the issuer of the bond or security.