Car insurance is a must in Malaysia. Most car owners feel less financial burden after the first year of insurance renewal as they’ll be eligible for the no-claim discount (NCD). But even with NCD, your car insurance premium can still increase due to several factors.
The drivers’ behaviour, the place they live in and the type of policy are all factors that directly affect the price of one’s insurance premium. Here are the five factors that can influence your car insurance premium.
Speeding and breaking traffic rules
Your driving record plays an important role in determining your car insurance premium. If you are a high-risk driver (with a history of traffic violations), the insurance company will quote you a higher insurance premium. Since high-risk drivers are more likely to get involved in accidents, they must pay more insurance premiums than others.
Comprehensive coverage
Depending on the insurer and the state you live in, your car insurance premium may increase, taking into account incidents out of your control. Comprehensive coverage often includes theft, vandalism, hitting an animal, fire, broken glass, weather-related damage, and other natural phenomena. If you live where these incidents are more likely to occur, you might have to pay a higher insurance fee.
More than two additional drivers listed
Some insurance plans also charge a certain premium to include each additional driver’s name in the policy. This means they typically only cover one driver, the vehicle’s owner. As such, compare policies and choose a plan that allows you to register additional drivers for free.
Place of residence
Your insurance prices may increase if you move to a neighbourhood with a high criminal record. Insurance companies consider this factor as those living in high-risk areas may likely submit bigger, more frequent damage claims. So, this influences how much premium they have to pay as well.
Insurance has expired
Insurance companies usually charge a higher premium if car owners renew policies far from their expiry dates. To avoid this, renew your car policy annually before it expires. To be safe, you can buy it as early as two months before the existing one expires.
Car insurance premium in Malaysia
Auto insurance premiums can increase at any point. More than one reason influences how much you’ll have to pay when you renew the policy. Remember to take note of these things to avoid paying more in the future. Be sure always to select the best plan that suits you.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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