Introduction
Every car owner in Malaysia should know how insurance premiums are calculated. The two most important factors are driver’s age and car model, which both affect risk and cost. This article explains how to calculate car insurance premium step by step and shares practical tips to reduce your cost without sacrificing coverage.
Key Factors That Affect Premiums
| Factor | Description |
| Driver’s Age | Younger drivers (<25 years) usually pay higher premiums due to higher accident risk. Drivers aged 25–60 typically enjoy lower rates. |
| Car Model | Luxury or imported cars cost more to repair → higher premiums. Local smaller cars usually cost less. |
| Claim History | The more claims you make, the higher your premium. |
| Coverage Type | Comprehensive vs Third Party. Comprehensive costs more but provides wider protection. |
How to Calculate Car Insurance Premium
- Identify your coverage type
Decide whether you want comprehensive, third-party, or additional coverage such as VIP Rescue. - Check driver and car factors
- Driver’s age
- Car model
- Claim history
- Driver’s age
- Use the basic formula (estimation):
Premium = Base Rate × Age Factor × Car Model Factor × Claim Factor
Example:- Base rate: RM1,000
- Age 22 → 1.5 factor
- Luxury import → 1.8 factor
- No claim → 1.0 factor
- Base rate: RM1,000
- Estimated Cost = 1,000 × 1.5 × 1.8 × 1.0 = RM2,700
- Get proper quotes
VIsiting online platforms such as Bjak or MyEG for more accurate price & benefits comparisons.
Tips to Reduce Your Premium
- Choosing medium sized local cars which lowers the cost.
- Spotless record with no claims to enjoy your NCD.
- Compare vehicle quotes on legit online platforms for best deals.
- Only choose coverage add-on that are necessary.
Frequently Asked Questions (FAQ)
1. How insurance premium calculated?
Premiums are calculated by factor of vehicle model/age/condition/location & type of coverage
2. Why pay higher premiums if younger?
Insurers will factor in that younger drivers will be driving daily and noted that as statistic as high risk factor.
3. Do car models affect the premium?
Yes, if the car has more value (according to the insurer) the premium will be calculated accordingly.
4. How to lower the premium?
Drive responsibly to avoid making claims, use comparison platform like Bjak/MyEG to find the best offers.
5. Online premium calculation possible?
Yes. Platforms like Bjak provide instant estimates based on your car and driver details.
Conclusion
Understanding that premiums can have various factors to be calculated from, this’ll help you understand further to make more informed decisions. Using this as guide to help calculate car insurance premium via comparison sites will secure the best deals at the lowest price to
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