Introduction
Every year, Malaysian car owners are often surprised by the increase in car insurance premiums during policy renewal. While this may feel burdensome, understanding the factors contributing to the rise and strategies to manage it can help drivers make smart decisions and save costs.
Causes of Rising Insurance Premiums
- Rising parts and labor costs: Car repairs, especially for imported or premium models, have become more expensive.
- High claim trends: More claims filed each year lead insurers to adjust premiums to cover risk.
- Inflation and insurer operating costs: Administrative and operational cost increases affect premium pricing.
- Vehicle type & age: New or imported cars generally have higher premiums compared to older cars.
Other Contributing Factors
- Driver profile: Age, driving experience, claim history, and traffic violations influence premiums.
- Location & driving area: Urban areas with heavy traffic and higher theft risk → higher premiums.
- Type of coverage: Comprehensive coverage is costlier than TPL, especially with add-ons like Key Care or VIP Rescue.
- No-Claim Discount (NCD): Missing or lost NCD automatically increases premiums.
Smart Ways to Manage Rising Premiums
- Compare insurance prices: Use platforms like BJAK to check the best rates among insurers.
- Check relevant add-ons: Avoid paying for unnecessary add-ons, but consider ones that add real value.
- Maintain your NCD: Renew before policy expiry to avoid gaps in coverage.
- Choose policies matching vehicle & driver profile: Tailor coverage to actual risks.
- Take advantage of promotions: BJAK often has attractive insurance promotions to reduce costs.
Conclusion
The increase in car insurance premiums is common, but it can be managed with an understanding of risk factors and smart strategies. Indeed platforms like BJAK make it easy for car owners to compare rates, maintain NCD, and choose coverage suitable for their budget, ensuring insurance costs remain reasonable year after year.
Read More:
How to Evaluate Insurers by Price, Workshop & Claims
