Commercial Vehicle Premiums Fall As Auto Prices Recover The commercial vehicle insurance market is experiencing a downturn in premiums as auto prices recover. This is due to a number of factors, including the increased availability of used vehicles and the decline in the number of new vehicle sales. Increased Availability of Used Vehicles The supply of used vehicles has increased in recent months as more people are selling their cars. This is due to a number of factors, including the rising cost of new vehicles and the improving economy. As a result, buyers have more options to choose from, which is putting downward pressure on prices. Decline in New Vehicle Sales The number of new vehicle sales has declined in recent months as consumers become more cautious about spending. This is due to a number of factors, including the rising cost of living and the uncertainty surrounding the economy. As a result, there are fewer new vehicles on the road, which is also putting downward pressure on prices. Impact on Commercial Vehicle Premiums The decline in auto prices is having a significant impact on commercial vehicle premiums. This is because the cost of replacing a commercial vehicle is directly related to the price of new vehicles. As a result, as auto prices fall, so do the premiums for commercial vehicle insurance. Outlook The outlook for the commercial vehicle insurance market is positive. As the economy continues to improve, the demand for used vehicles is expected to increase, which will further put downward pressure on prices. This is expected to lead to continued declines in commercial vehicle premiums.COE Prices Mixed, Premiums for Cars RiseCOE Prices Mixed, Premiums for Cars Rise The latest Certificate of Entitlement (COE) tender on June 20 yielded mixed results, with auto premiums rising for certain categories. Category A, for smaller, less-powerful cars and electric vehicles (EVs), saw the largest increase, with prices jumping 3% to $90,889. Category B, for larger, more powerful cars and EVs, also rose 1.7% to $102,334. Motorcycles (Category D) experienced a modest increase of $13 to $9,002. However, Category E, which can be used for any vehicle type excluding motorcycles, saw a 1.6% drop to $100,000. Commercial vehicle COEs (Category C) also declined, closing at $69,900. The surge in premiums for car categories is attributed to a drop in prices in the previous tender. Car dealers report an increase in sales in the past two weeks, indicating pent-up demand. In total, 3,661 offers were received for the latest tender, against a quota of 2,551 COEs. COEs grant individuals the right to own and operate a vehicle in Singapore..COE+auto+prices+recover;+Open+category,+commercial+vehicle+premiums+down Certificate of Entitlement (COE) prices rebounded in the latest tender on Wednesday (Aug+10),+with+premiums+for+all+categories+of+vehicles+rising,+except+for+the+Open+category+and+commercial+vehicles. COE+premiums+for+cars+up+to+1,600cc+and+100bhp+increased+by+S\$2,489+to+S\$48,001.+Premiums+for+cars+above+1,600cc+or+100bhp+went+up+by+S\$2,787+to+S\$53,789. The+Open+category,+which+can+be+used+for+any+type+of+vehicle+except+motorcycles,+saw+its+premium+dip+by+S\$1,+142+to+S\$65,857.+Commercial+vehicle+COE+premiums+also+fell,+by+S\$3,741+to+S\$38,501. The+motorcycle+premium+remained+unchanged+at+S\$7,463. The+latest+COE+tender+received+1,341+bids,+with+782+for+cars,+219+for+commercial+vehicles,+88+for+motorcycles+and+252+for+the+Open+category. The+number+of+COE+applications+for+cars+and+motorcycles+fell+compared+to+the+previous+tender,+while+the+number+of+bids+for+commercial+vehicles+and+the+Open+category+increased. Wednesday’s+tender+was+the+first+to+be+held+since+the+government+announced+on+July+18+reforms+to+the+COE+system+in+a+bid+to+reduce+overall+vehicle+growth+in+the+long+term. Under+the+reforms,+the+growth+rate+for+COEs+will+be+reduced+to+0.25+per+cent+per+quarter+from+the+current+0.5+per+cent.+The+number+of+COEs+available+for+bids+will+also+be+reduced+by+about+30+per+cent+from+next+February. Analysts+said+the+increase+in+COE+premiums+in+the+latest+tender+could+be+due+to+a+combination+of+pent-up+demand+from+buyers+who+had+been+waiting+for+the+COE+reforms,+as+well+as+the+reopening+of+the+economy. They+added+that+the+dip+in+COE+premiums+for+the+Open+category+and+commercial+vehicles+could+be+due+to+the+slower+demand+for+such+vehicles+compared+to+cars.