If you’re tired of breaking the bank with high car insurance premiums, then you’re in luck! By understanding the various elements that influence your auto insurance rates, you can take steps to cut costs and keep more money in your pocket. Check out these 8 useful tips to help you save on your car insurance expenses.
Increase your NCD
Earn rewards for being a responsible driver by building up your No Claim Discount (NCD) – a special entitlement offered by insurers to policyholders who have had no claims made on their car insurance policy within a one-year period.
Driving safely not only prevents accidents but can also save you money on your insurance premiums. By being mindful on the road, you can lower your risk of getting into accidents or receiving traffic tickets, which can impact your insurance rates. Remember, your driving record plays a crucial role in determining the cost of your policy.
Choose the right coverage
When it comes to car insurance, there are three options available, but choosing the right one is crucial. If you’re a cautious driver with a new car, comprehensive coverage is your best bet. However, if you’re driving an old car or not hitting the road too often, a third party or third party, fire and theft policy may be just what you need. Be sure to consider factors like driving habits and vehicle age before making a decision.
Choose the right add-ons
Don’t waste money on unnecessary car insurance add-ons! While comprehensive policies may offer a variety of additional coverages, like riot protection and named driver coverage. You only need to consider adding the ones that make sense for your situation. For example, if you’re in an area with lots of debris on the roads, windscreen coverage might be a wise investment. Remember, it’s all about being practical and getting only what you need to keep you and your car protected.
Do not modify your car
Don’t fall for the temptation of modifying your car – not only can it increase the likelihood of your car being stolen, but it can also hike up your insurance costs! Keep in mind that even the slightest modifications to your vehicle’s parts can be considered a breach of the manufacturer’s specifications, which insurers take seriously. So, if you want to save money on your premium, resist the urge to tweak your car and keep it as it is.
Do not over-insure
Don’t fall into the trap of over-insuring your car for more than its actual market value. You might end up losing out on potential claims. Imagine agreeing to a policy that values your car at RM65,000. But when it’s damaged in an accident and the repairs cost RM15,000. Your insurer will only pay out the amount based on the actual repair bill, not the inflated value you insured it for.
Let’s break it down – based on your loss amount of RM80,000, with maximum coverage of RM75,000, you’ll be paid out RM15,000. However, don’t forget about the RM1,000 excess, which unfortunately won’t be refunded to you.
Do not under-insure
Are you aware that insuring your car below the market value could leave you at risk of being underinsured? Picture this: you insure your car for RM37,500, half of its actual worth, and get into an accident that causes RM15,000 in damages. Unfortunately, your insurer can only cover half of the cost, leaving you to pay the rest out of pocket. Don’t make this mistake! Insure your car for its agreed value to avoid being left high and dry when you need coverage the most.
Pick an affordable car to buy
Buying an affordable model can save you big bucks in the long run. While luxury cars might be tempting with their fancy features, keep in mind that they often come with higher insurance premiums due to their expensive repair costs. So, do your research and choose a car that won’t break the bank on insurance.
Compare insurance online before buying
Don’t get ripped off with your car insurance premium! Instead, take charge of your finances and make an informed decision. Before buying a car insurance premium, do your homework and compare policies from various providers.
Don’t just look for the cheapest option; consider the coverage and benefits, too. Remember, the goal is to find an insurance company that offers excellent value for money and has a good reputation for service. So, take your time and don’t settle for anything less!
Bjak is one of Malaysia’s biggest insurance comparison sites, with more than 10 insurance brands to choose from. Get your free insurance quote at Bjak today!
Read more:
