Introduction
Many drivers wonder why their car insurance premium is higher or lower than others, even when the coverage type is the same. The reason often comes down to two key factors — engine capacity (CC) and the age of the car. These determine how much risk the insurer takes on, which directly affects your premium. In this article, we’ll break down how CC and car age impact premiums so you can budget smarter, avoid overpaying and how to calculate car insurance premiums.
Factors That Determine Premium amount
Insurance premium are determined by 2 key factors:
- Engine capacity (CC): Larger engines are expensive to repair hence the higher premium.
- Car age: Newer cars have higher premiums as they adjust to current market values.
Premiums Based on Engine Capacity (CC)
Not only does Engine CC affect roadtax price but also the premiums as well.
- Below 1400cc: Lower premiums due to cheaper cost to repair
- 1400cc – 2000cc: Moderate premiums.
- Above 2000cc: Higher premiums since parts and repairs cost more.
Example: When 2 vehicles are the same market value but one has a higher CC engine compared to the other which will greatly increase the premium.
Premiums Based on Car Age
Car age also plays a major role:
- 0–5 years old: Premiums remain stable as market value is high.
- 6–10 years old: Premiums drop slightly due to depreciation.
- Over 10 years old: Lower Premiums due to market value drop
Sample Premium Comparison
| Car Model | Engine CC | Car Age | Est. Premium (RM) |
| Perodua Myvi | 1300cc | 3 years | RM1,200 |
| Honda Civic | 1800cc | 5 years | RM2,000 |
| Toyota Camry | 2400cc | 8 years | RM2,800 |
Why You Should Compare First
Although CC and vehicle age are key factors, premiums will vary across insurers that why you must:
- Compare before buying.
- Use platforms like Bjak to view multiple insurer quotes.
- Choose coverage that fits your budget and car’s needs.
Conclusion
To calculate car insurance premiums in Malaysia are heavily influenced by engine capacity and car age. Bigger CC means higher premiums, while older cars may also face higher risk-based costs. To avoid overpaying, always compare across platforms like Bjak before renewing your insurance.
Read More:
Best Car Insurance Malaysia 2025
