Driver’s risk profiling means evaluating how likely it is for a specific risk to happen and for a claim to be made. This evaluation helps determine the amount you’ll pay for insurance. Driver risk profile factors play a part too. If insurance companies consider you as a higher risk driver, they will likely charge you a higher insurance premium.
Note: In car insurance, different factors are considered to evaluate risk. However, these factors may vary depending on the type of risk being insured, as stated by the General Insurance Association of Malaysia (PIAM). Keep in mind that these factors are subjective and based on the specific guidelines used by each insurance company.
Driver’s age
High risk
Statistics show that teenagers and young adult drivers between 17 and 23 years old have a high involvement in many serious accidents.
Similarly, insurance providers consider drivers aged 50 and above as high risk due to their potential for slower reflexes and susceptibility to health conditions like Dementia, heart failure, and Parkinson’s, which can affect their driving abilities.
Low risk
Drivers aged between 30 and 50 have plenty experience in handling unexpected situations on the road and exhibit quicker reactions.
Car’s age
High risk
Older cars, especially those that have been around for more than 10 years, are more likely to experience breakdowns compared to newer cars.
Low risk
In contrast, new cars have better condition and lower chances of getting damaged compared to older ones.
Driver’s gender
High risk
According to PIAM, based on studies conducted in many advanced nations, found that male drivers generally pose a higher risk compared to female drivers.
Low risk
Also, insurance companies often perceive female drivers as driving more cautiously, having a greater threshold for tolerance, and exhibiting less reckless behaviour on the road.
Driver’s claim record
High risk
Insurance companies categorize drivers who frequently engage in accidents and file insurance claims as high risk. This can potentially lead to higher insurance premiums at insurance renewal.
Low risk
Meanwhile, insurance companies consider drivers who are prudent and have never made an insurance claim as low risk drivers.
Installation of anti-theft devices
High risk
Insurance companies consider cars without anti-theft security systems are riskier than those with them because they have a higher chance of being stolen.
Low risk
Cars with recognized anti-theft systems to have a moderate level of risk. Drivers also can further reduce the risk and qualify for lower insurance premiums by adding extra features like telematics or GPS tracking devices.
Traffic offence record
High risk
Insurance companies will see drivers who often break traffic rules as a bigger risk and may charge them higher premiums.
Low risk
In the mean time, if the driver is responsible and rarely gets in trouble, insurance providers will consider them as low-risk and may offer them lower insurance costs.
Maintain a good driver risk profile
Finally, it’s crucial to take care of one’s driver risk profile and avoid unnecessary risks. Be a cautious driver and minimize your involvement in accidents to avoid making insurance claims. By being responsible and proactive, you can potentially lower your insurance premium.
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