Introduction:
Many drivers ask the same question — “Why is my insurance premium cheaper or more expensive than others?” The truth is, insurers don’t just pick numbers at random. Every cent is calculated using data, risk levels, and your driving record. With BJAK, you can clearly see how each factor influences your policy price — and how to find the best deal for your car by understanding the secrets behing cheap premiums
1. Type of Coverage & Vehicle Value
The higher your car’s value, the higher the potential claim payout — which means higher premiums.
- Comprehensive (1st Party): Covers accidents, theft, natural disasters, and own damage.
- 3rd Party, Fire & Theft: Basic protection at a lower cost.
BJAK Tip: If your car is over 10 years old, consider a 3rd party plan for better savings.
2. Driver Profile & NCD Record
Age, gender, location, and accident history all affect your rate.
- Younger drivers (18–25) tend to pay higher premiums.
- Your No Claim Discount (NCD) can lower costs by up to 55% if you’ve made no claims.
BJAK automatically checks your NCD rate during your quotation, so you always see an accurate premium.
3. Vehicle Type & Usage
Private, commercial, and e-hailing vehicles are priced differently.
- Commercial or e-hailing cars carry higher risk.
- Compact city cars like Myvi or Axia usually enjoy lower premiums.
Insurers like Allianz and Liberty listed on BJAK assess vehicle usage carefully to match fair pricing with risk levels.
4. Location & Risk Level
Where you live or park your car matters too.
Areas with high crime, flood, or accident rates often have slightly higher premiums.
For example, cars in Klang Valley may be priced higher than those in rural areas due to heavier traffic and accident frequency.
5. Claim History & Insurer Brand
If you’ve filed multiple claims before, your risk profile goes up — and so does your premium.
Also, every insurer uses a unique pricing formula, which is why you might see different prices for the same car on BJAK.
Conclusion:
The secrets behind cheap premiums aren’t just random discounts — they’re the result of calculated risk assessments.
With BJAK, you can easily compare premium prices from different insurers, understand what drives those costs, and choose the most worthwhile policy that fits your budget and driving habits.
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