Introduction
The rise in car insurance claims has become a major issue in Malaysia. Many drivers are surprised when their annual premiums increase even without making any claims. This happens because the total number of claims in the market — including accidents, floods, and fraud — affects how insurers set their prices.
In this article, we’ll explore how the increase in car insurance claims drives premiums up, the main factors contributing to this rise, and simple ways to save when renewing your policy.
1. What Car Insurance Claims Increase Means
A car insurance claim is a request for compensation after your vehicle is damaged or involved in an accident. When the total number of claims rises sharply, insurers reassess market risk — and as a result, premiums for all drivers can increase, not just for those who made claims.
2. Main Reasons for Higher Premiums in 2025
Several key factors are driving car insurance rates up this year:
- Rising spare parts and labor costs — component prices and workshop fees increase annually.
- Flood-related damages — more total loss claims after major floods.
- Claims fraud — fake claims continue to impact the market overall.
- High road accident rates — more accidents mean higher risk for insurers.
3. Impact of Premium Increases on Drivers
When premiums rise, many car owners opt for the cheapest plan without considering actual coverage. This can lead to problems during accidents. Platforms like BJAK allow you to compare prices, check your NCD, and select appropriate coverage without overpaying.
4. How to Save on Car Insurance Premiums in 2025
Simple ways to keep costs down:
- Maintain your NCD by avoiding small claims.
- Choose a basic plan without unnecessary add-ons.
- Compare multiple insurers through BJAK before renewing.
- Add optional coverage like VIP Rescue or Key Care only when needed.
Conclusion
In short, rising car insurance claims directly affect premiums for all drivers, not just those who file claims. By understanding the main causes and using platforms like BJAK to compare plans before renewing, you can stay protected without paying excessively high premiums.
Read More:
Car Insurance Premium Increases: Causes & How to Save
Registering MyJPJ Without A Driver’s License
Electric Vehicles (EVs) Insurance: Add-Ons & Latest Coverage
