Besides regular car maintenance, insurance is the next biggest running cost of your car. You need to renew your car insurance on a yearly basis as long as you’re using your car on the road. It’s because without car insurance policy, you cannot renew your car road tax. A car insurance premium varies across the car age, make & model, and driver profile etc.
To help you save some costs during your insurance renewal, here are some tips for you.
- Good Driving Record
Our country values careful drivers. If you obey the traffic law and maintain a good driving record by not involving in road accidents, you will be rewarded with discount on the car insurance premium. This discount is called “No Claim Discount” or NCD.
Below is how NCD is calculated according to PIAM (Persatuan Insurans Am Malaysia).
For Private Car,
1st Year NCD: 0%
2nd Year NCD: 25%
3rd Year NCD: 30%
4th Year NCD: 38.33%
5th Year NCD: 45%
5 Years & Above: 55%
For Commercial Vehicle,
1st Year NCD: 0%
2nd Year NCD: 15%
3rd Year NCD: 20%
4th Year NCD: 25%
4 Years & Above NCD: 25%
- Car Purchase
People prefer new luxury cars. But price of the new car is always higher than the used car. Same goes to the car insurance. By purchasing a good condition used car can help reduce your car insurance premium a lot.
Besides, car insurance premium is not solely depending on the car price but also the model of the car. Certain models that have higher risks of theft or breakdown will lead to higher premium. This is why you should do some research before purchasing a car.
- Know Your Policy Well. Is It Under-insured Or Over-insured?
Do you really understand your car insurance policy? Are you’re just relying on the insurance agent’s quotation? As time goes by, your car loan balance will gradually decrease should you pay it on time. In this case, you can actually lower your car insured amount to cover the loan balance. Or, you can lower the insured amount by referring to the current market value of your car if the car value is lower than what the insurance agent has quoted you.
But do keep in mind that a lower premium does not neccessary mean good because your car might be under-insured. This will cause you to pay for damages that you have not covered in the policy if you involved in an accident.
- Too Much Extra Coverage
Consider the usage of your car before buying the car insurance. Are you going to use it daily or weekend drive? Is this car your secondary transportation? Where could be the places that you would usually go? Do these places flood often? Would you drive your car on the highway very often? Do you travel long distance often with you car?
Above are some common questions that you should ask yourself before you add extra coverage items such as windscreen cover, towing, flood package etc into your car insurance policy.
Conclusion
In summary, buying the car insurance according to the market value and the usage of your car can help reducing some unnecessary costs for you.
Looking for a comprehensive car insurance policy? Check out our insurance renewal website at www.pctcmotorsportconnect.com/jpj-insurance-renewal/
