Introduction
Many drivers wonder why their insurance premiums increase every year even if no claims are made. The increase isn’t random — there are clear reasons behind it. This article explains the main factors affecting premium hikes, including NCD, roadtax rates, car type, insurance trends, and how to reduce costs using BJAK Calculator and panel options such as Allianz, Takaful Malaysia, or P&O Insurance.
Factor 1: NCD & Claims History
- Each claim you make can reduce or remove your NCD.
- Lower NCD results in higher premiums compared to the previous year.
- Even without claims, some policies increase annually based on set formulas.
Factor 2: Changes in Roadtax
- Higher roadtax = higher risk & insurance cost.
- Changes in engine capacity or state-specific roadtax rates can also raise premiums.
Factor 3: Vehicle Age & Value
- New cars → higher premiums due to expensive replacement costs.
- Older cars → premiums may increase for certain risks, especially if using Market Value coverage and the market value drops.
Factor 4: Insurance Trends & Inflation
- Rising repair costs, spare parts, and labor rates push premiums higher.
- Inflation increases base insurance rates even if driver risk remains the same.
Factor 5: Driver Profile & Driving Record
- Age, experience, and traffic violation or accident history can influence premium hikes.
- BJAK provides panel comparison so you can find the most competitive rates.
Tips to Reduce Premium Increase
- Maintain NCD by avoiding minor claims.
- Check roadtax and combine with BJAK Calculator for accurate cost estimates.
- Compare insurance panels via BJAK (Allianz, Takaful Malaysia, P&O Insurance).
- Choose coverage type wisely (Market Value vs Agreed Value).
Conclusion
Annual insurance premiums increase are not just bad luck — they’re influenced by NCD, roadtax, vehicle value, cost trends, and driver profile. Understanding these factors allows you to take smart steps: maintain NCD, check roadtax, and compare BJAK panels to reduce yearly costs.
Read More:
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