Renewing car insurance in Malaysia may not be seen as a major task for many Malaysians. It’s just one of the annual tasks that come along with car ownership. When the renewal notice comes in, most people will just look at the amount to be paid and go ahead to pay the premium without giving it a second thought. However, not many people are aware that car insurance premium in Malaysia is not fixed. There are a number of factors that can affect the amount of premium to be paid. By making a number of adjustments, it may be possible to reduce the premium without reducing the quality of service. Therefore, if you want to reduce your car insurance premium in Malaysia, here are seven ways to do it.
1. Protect and Maintain Your No Claim Discount (NCD)
One of the major factors that influence your insurance premium is your No Claim Discount (NCD). In Malaysia, for example, a driver who did not make any claims during their policy period is rewarded with a discount upon renewing their policy. This reward accumulates over time and can reach up to 55% for private cars. Losing your NCD after a claim can greatly impact your premium, and this is one of the major reasons why people try to maintain it.
2. Compare Insurance Plans Before Renewing
There are some car owners who always renew their insurance policy with their previous insurer. Although it is easier and more convenient to renew with your previous insurer, it may not always be the best option. There are different premium rates from different insurance companies, even if they provide similar insurance plans. It may be worthwhile taking some time to compare different insurance plans before renewing your policy.
3. Ensure the Insured Value Reflects Your Car’s Market Value
Your sum insured is yet another factor that determines your premium costs. If your car’s insured value is higher than its actual market value, you might be paying more for your insurance than you should. It would be wise to check the current market value of your car before renewing your policy. Changing your insured value to something closer to its actual value can help you lower your premium costs.
4. Think Carefully Before Making Small Claims
However, while the purpose of insurance is to protect you financially, not all repairs need to be claimed. While the repair cost may not be too high, if you claim, you may end up losing your NCD, which may cause your premium to increase substantially the following year. For minor damages, some people may choose to pay out of pocket to avoid losing their NCD.
5. Review Optional Add-Ons
Most motor insurance plans have optional add-ons, which include windscreen protection, flood, and personal accident. While they may prove to be useful, they may cause your premium to increase. Reviewing your insurance policy and removing unnecessary add-ons may help you save on the overall premium.
6. Consider the Age and Usage of Your Car
The market value of older vehicles is naturally lower, and this can have some effect on the type of insurance that one should have. There are some people who opt to change some of the add-ons in order to have reasonable premiums, especially if they own older vehicles. However, it is still important to ensure that your car has enough insurance in case of accidents.
7. Maintain a Safe Driving Record
Not only do safe driving practices minimize the risk of accidents, they can also help you build up a good insurance record. Having fewer claims can result in higher NCD and lower premiums in the future.
Having a car in Malaysia requires you to have car insurance, and that is a fact. However, that does not necessarily mean that you have to pay too much for your car insurance. Knowing how your insurance premium is calculated and taking a few simple steps can help you save money on your insurance premium while still enjoying the benefits that your insurance has to offer. Before you go out to buy your next car insurance policy, take some time to think about your options. You may just save more than you think.