Why Do Premiums Keep Increasing?
Many drivers don’t realize how much money slips away during renewals. Premiums increase yearly but depending on the model of your vehicle, and with the wrong steps you may be paying more than needed. Follow these methods to save on yearly car insurance renewal and cut down cost whilst having the required protection for your car.
How to Save on Car Insurance Every Year
1. Use NCD Consistently
The No Claim Discount (NCD) can shave off up to 55% if you maintain a clean record without claims. Don’t miss your renewal date, or you risk losing this discount.
2. Compare Prices Across Insurers
Each insurer charges differently for the same car. On Bjak, you can instantly compare rates from Allianz, Liberty, Takaful Malaysia, and Ikhlas. The difference can be hundreds of ringgit a year.
3. Review & Cut Unnecessary Add-ons
Many drivers pay for add-ons they don’t need. For example, a RM400 windscreen add-on for an old car may not be worth it. Choose add-ons based on real needs.
4. Pick the Right Renewal Channel
With Bjak, you can compare plans and get instant policy issuance. In Sabah & Sarawak, many drivers renew insurance via Bjak but get their road tax directly at JPJ for cheaper fees.
5. Renew Early, Not Late
Delaying renewals risks losing your NCD. It’s smarter to renew one or two weeks before expiry.
6. Consider Market Value vs Agreed Value
For new cars, Agreed Value is safer because compensation is closer to the car’s actual worth if there’s a total loss. For older cars, Market Value may be more cost-effective.
Example of Savings
| Driver | Method | Annual Premium | Savings Per Year |
| A | Doesn’t compare, adds everything | RM1,800 | – |
| B | Compares + uses NCD + trims add-ons | RM1,250 | RM550 |
Common Myths About Saving on Insurance
- “The cheapest policy is always the best.” → Not true, since coverage could be too basic.
- “Third party is always cheaper.” → Not always. If your car still has high market value or you live in a flood/theft-prone area, comprehensive is the safer bet.
Conclusion
At the end of the day, the secret isn’t just about hunting for the cheapest price. The real wins come from applying the right yearly car insurance renewal saving methods — using NCD to your advantage, comparing insurers, trimming unnecessary add-ons, and renewing on time. With Bjak, you can quickly compare Allianz, Liberty, Takaful Malaysia, and Ikhlas, ensuring your annual renewal is both cost-efficient and secure.
Read More:
How to Handle a Rejected Car Insurance Claim
