Car insurance pricing · Clear facts
Why one car insurance quote may be cheaper than another
Direct answer
A cheaper car insurance quote does not always mean less protection.
Your price can change depending on the insurer, your Sum Insured, your No Claim Discount (NCD), the coverage included and the add-ons you select. BJAK helps you compare these details clearly, so you understand what you are paying for before making a decision.Last updated: August 14, 2026
How your price is calculated
Basic premium − NCD + selected add-ons + tax and applicable chargesEach part affects the final amount differently.
- Sum Insured
- The amount your vehicle is insured for
- Premium
- The amount you pay for the insurance coverage
- Total payable
- The final amount after NCD, add-ons, tax and applicable charges are included
“A cheaper quote is not always less protection. It depends on the insurer, your Sum Insured, your NCD, the coverage and the add-ons you choose.”
Five reasons
Why your quote may be cheaper
A lower price can come from better pricing—or from coverage that is not included. Here is what usually moves the number.- Five reasons · 1
Different insurers offer different prices
Each insurer calculates risk and pricing differently. This means two insurers may offer different premiums for the same vehicle, even when the coverage looks similar. BJAK lets you compare multiple insurer options from its partner panel.BJAK's panel currently covers 16 partner insurers and takaful operators, and does not include every provider available in the market. - Five reasons · 2
Your NCD has reduced the premium
NCD rewards you for not making an insurance claim during the previous policy period. The longer you remain claim-free, the higher your NCD may become, up to the applicable maximum. A higher NCD means a larger discount on your basic premium.Example- Basic premium
- RM1,000
- NCD discount
- 55%
- Premium after NCD
- RM450
- Five reasons · 3
The Sum Insured may be different
Sum Insured is the amount your vehicle is insured for. A lower Sum Insured may result in a lower premium, but setting it too low may mean your vehicle is not adequately protected. A higher Sum Insured may increase your premium, but it does not necessarily mean a higher claim payout than your vehicle's applicable value. Always compare quotes using a suitable Sum Insured. - Five reasons · 4
The quote includes different add-ons
A cheaper quote may exclude optional protection included in another quote. Before choosing a quote, check whether both options include the same protection.Common add-ons include:- Windscreen coverage
- Flood and natural disaster protection
- Additional driver coverage
- Passenger liability coverage
- Five reasons · 5
The coverage value may be different
Your vehicle may be covered based on market value or agreed value, depending on the insurer and policy. A quote using a different coverage value may have a different price.Market value
The claim value is based on your vehicle's applicable market value at the time of loss.Agreed value
The insured value is agreed when the policy starts, subject to the policy's terms and conditions.
What you actually pay
Your Sum Insured is not the amount you pay
Sum Insured is the amount your vehicle is insured for. Your actual payment is calculated from the premium, discounts, add-ons and applicable charges.Example price breakdown
| Basic premium | RM1,000 |
| NCD discount | −RM550 |
| Windscreen coverage | +RM120 |
| Flood protection | +RM80 |
| Tax and applicable charges | +RM50 |
| Total payable | RM700 |
Price changes
Why did my price change after I selected a quote?
Your displayed price may change when you:- Adjust the Sum Insured
- Add or remove optional coverage
- Update your vehicle details
- Change the usage type
- Select a different insurer
- Apply your verified NCD
- Add road tax or other services
Review the final price breakdown before making payment.
Cheapest ≠ best
Is the cheapest quote always the best?
Not necessarily. A fair comparison should be based on the same level of protection. A quote may be cheaper because it offers better pricing—but it may also be cheaper because certain coverage is not included.Before choosing a quote, check:
- Is the Sum Insured the same?
- Is the NCD correctly applied?
- Are the same add-ons included?
- Is the coverage based on market or agreed value?
- Are there different excesses, limits or conditions?
- What is the final total payable?
Compare like for like
Compare like for like
Imagine you receive two quotes. Quote B is cheaper, but it does not provide the same Sum Insured or add-on protection.Quote A
- Total payable
- RM720
- Sum Insured
- RM50,000
- Windscreen coverage
- Included
- Flood protection
- Included
Quote B
- Total payable
- RM600
- Sum Insured
- RM45,000
- Windscreen coverage
- Not included
- Flood protection
- Not included
The best option depends on the protection you need, not only the lowest displayed price.
FAQ
Cheaper quotes: direct answers
Your quote may be cheaper because a different insurer offers a lower premium, your NCD has increased, the Sum Insured has changed or different add-ons are included. Compare the full coverage details before deciding.
Not always. Some insurers may offer a lower price for similar coverage. However, a cheaper quote may also have a lower Sum Insured or fewer add-ons. Always compare the coverage details together with the price.
A lower Sum Insured may reduce your premium, but it may also leave your vehicle underinsured. Choose an amount that reasonably reflects your vehicle's applicable value.
Your NCD depends on how long you have remained claim-free and the applicable vehicle category. For private cars, the discount may increase over consecutive claim-free years, up to the applicable maximum.
NCD generally applies to the eligible basic premium. Some add-ons and additional charges may not receive the same discount. The final quote breakdown will show how your price is calculated.
Optional coverage such as windscreen or flood protection adds to your premium. The final amount will increase based on the add-ons you select.
Road tax is separate from the insurance premium. It may appear in the same checkout journey when selected, but it should be shown as a separate amount in your price breakdown.
Each insurer uses its own pricing, risk assessment, coverage structure and underwriting rules. This is why the same vehicle may receive different prices from different insurers.