Introduction
If you’ve ever renewed your car insurance, you’ve probably wondered — why is the premium so different even for the same car?
It’s not random. Every insurer calculates the amount based on a few key factors. Some you can control, others not so much. But once you understand how they calculate car insurance premium, you’ll know what’s fair and what’s not — especially when comparing quotes on BJAK later.
1. Type of Coverage
This one matters most. A Comprehensive policy costs more because it covers more — including theft, fire, and own-damage.
Meanwhile, Third Party or Third Party, Fire & Theft policies are cheaper since they only protect against limited risks.
2. Market Value & Car Age
The newer and pricier your car, the higher your premium — simply because replacement costs more.
As your car gets older, the premium usually drops due to depreciation. Still, some insurers might charge more if they think an older vehicle is riskier to repair.
3. NCD (No Claim Discount)
If you haven’t made any insurance claims, your NCD goes up every year — up to 55% off your premium.
But once you make a claim, it resets to zero.
That’s why two cars of the same model can have totally different insurance prices — just because of their NCD level.
4. Driver’s Age & Record
Younger or newly licensed drivers usually pay more because they’re seen as higher risk.
If you’ve had past accidents or multiple claims, expect your premium to rise too.
5. Location & Usage Type
Cars registered in busy cities like Kuala Lumpur or Johor Bahru often have higher premiums — more traffic, more theft risk.
Same goes if you drive your car daily instead of just on weekends — higher usage means higher risk.
Conclusion
There’s no single formula for everyone when it is time to calculate car insurance premium.
But once you understand the key factors, you can easily tell whether the price you’re quoted makes sense.
The easiest way? Just enter your plate number on BJAK — the system automatically calculates your premium based on JPJ data and current NCD.
No manual math, no guessing — your estimated price appears in seconds.
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