Introduction
Saving on Insurance Premiums is tempting, but low cost doesn’t always mean better value. Many Malaysian drivers overlook that lower premiums may result in being underinsured, which can be costly if damage or accidents occur. This article explains the main risks and offers smart ways to choose a policy that keeps you properly covered.
1. Being Underinsured Can Be Costly
Low premiums → may mean coverage limits are lower than your car’s actual value.
- If an accident occurs → you may need to cover the excess costs yourself.
BJAK Tip: Check your car’s market value and choose coverage limits that match it.
2. Essential Add-ons Can Be Excluded
Sometimes, to reduce premiums, drivers skip add-ons like Key Care, VIP Rescue, or Warranty.
- As a result, your small claims or emergency assistance may not be covered.
3. Workshop & Panel Repair Quality
Low premiums → may limit the choice of repair workshops or use ones not recognized by BJAK.
- Choosing a non-recognized workshop could affect both your NCD and repair quality.
4. Claims Can Compromise NCD Protection
Some cheaper policies remove your NCD if you make a claim.
- Drivers need to understand how to file claims without affecting their discount.
BJAK Tip: Check your policy and claim conditions to protect NCD, even for minor claims.
Conclusion
Saving on Insurance Premiums is not always wise if you don’t understand the risks. Being underinsured, missing essential add-ons, limited workshop options, and unprotected NCD can result in significant losses. Follow BJAK’s guide to choose a policy that fits your car and coverage needs, keeping long-term costs manageable and your NCD safe.
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