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Car insurance premiums in Malaysia are determined by various factors including car value, NCD, location, driving record, and occupation, and Bjak provides a platform for free comparison of up to 15 quotes.
Slides
Slide Presentation (12 slides)
Key Points
- Premium rates for car insurance in Malaysia have been liberalized since July 1, 2017, allowing individual insurers and takaful operators to determine the rates.
- Factors that affect car insurance premiums include car market value, cars manufacture year, No Claim Discount (NCD), type of car insurance, car location, driving record, and occupation.
- Car market value plays a significant role in determining the insurance premium, with higher market value cars having higher premiums.
- No Claim Discount (NCD) is a reward scheme that lowers the car insurance premium if no claims are made on the policy.
- The type of car insurance chosen, such as comprehensive insurance or third party insurance, also affects the premium.
- Comparing coverages and premiums offered by different insurers is crucial to finding the best car insurance policy.
Summaries
28 word summary
Car insurance premiums in Malaysia are affected by factors such as car value, NCD, location, driving record, and occupation. Bjak allows free comparison of up to 15 quotes.
77 word summary
Since July 1, 2017, car insurance premiums in Malaysia have been liberalized. Factors that affect premiums include car market value, manufacture year, No Claim Discount (NCD), type of insurance, car location, driving record, and occupation. Premiums are calculated using a formula that includes NCD, additional coverage, service tax, and stamp duty. Consumers should compare coverages and premiums from different insurers. Bjak is a platform that allows individuals to compare up to 15 car insurance quotes for free.
183 word summary
Car insurance premiums in Malaysia have been liberalized since July 1, 2017, giving insurers the ability to set their own rates. Factors that affect car insurance premiums include car market value, manufacture year, No Claim Discount (NCD), type of insurance, car location, driving record, and occupation.
Car market value plays a significant role in determining premiums, with higher-value cars having higher premiums. The manufacture year of a car also affects premiums, with older cars generally having lower premiums. NCD rates ranging from 25% to 55% can lower premiums. The type of insurance chosen also affects premiums, with comprehensive insurance being more expensive than third party insurance.
Car location, driving record, and occupation also impact premiums. City areas and high-risk occupations result in higher premiums, while good driving records lead to lower premiums.
To calculate car insurance premiums, the formula includes the premium after NCD, additional coverage, service tax (6%), and stamp duty (RM10).
Consumers should compare coverages and premiums offered by different insurers before making a decision. Platforms like Bjak can help individuals easily compare up to 15 car insurance quotes for free.
367 word summary
Car insurance premiums in Malaysia have been liberalized since July 1, 2017, allowing individual insurers and takaful operators to determine premium rates. This has resulted in varying premiums and more options for consumers. Several factors influence car insurance premiums, including car market value, manufacture year, No Claim Discount (NCD), type of insurance, car location, driving record, and occupation.
Car market value is a significant factor in determining premiums. Cars with higher market values will have higher premiums. However, as the car depreciates each year, the insurance premium decreases.
The manufacture year of a car also affects premiums. Older cars generally have lower premiums compared to newer ones.
No Claim Discount (NCD) is a reward scheme that affects premiums. Private cars can have NCD rates ranging from 25% to a maximum of 55%. Higher NCD rates result in lower premiums.
The type of insurance chosen also affects premiums. Comprehensive insurance is more expensive than third party insurance, while third party, fire and theft insurance is cheaper than comprehensive insurance but more expensive than third party insurance. Cars aged 10 years and below are required to have comprehensive insurance.
Car location is another factor that influences premiums. Cars in city areas have higher premiums compared to those outside of cities. Premiums are also higher for cars in West or Peninsular Malaysia compared to East Malaysia.
Driving record plays a role in determining premiums. Good drivers with clean records have lower premiums, while high-risk drivers with traffic violations and accidents have higher premiums.
Occupation can impact premiums as well. Occupations that require driving to high-risk areas result in higher premiums due to the increased risk of accidents and damages.
To calculate car insurance premiums, the basic formula includes the premium after NCD, additional coverage (if any), service tax (6%), and stamp duty (RM10).
In conclusion, car insurance premiums are influenced by various factors such as car market value, manufacture year, NCD, type of insurance, car location, driving record, and occupation. It is important for consumers to compare coverages and premiums offered by different insurers to make an informed decision. Platforms like Bjak can help individuals easily compare insurers and their offerings, providing up to 15 car insurance quotes for free.
586 word summary
Effective July 1, 2017, premium rates for Motor Comprehensive and Motor Third Party, Fire and Theft products have been liberalised by Bank Negara Malaysia (BNM). This means that premium rates are now determined by individual insurers and takaful operators, resulting in varying car insurance premiums and more options for consumers. Several factors influence car insurance premiums, including car market value, cars manufacture year, No Claim Discount (NCD), type of car insurance, car location, driving record, and occupation.
Car market value plays a significant role in determining car insurance premiums. Generally, cars with a higher market value will have a higher sum insured and therefore a higher premium. For example, a brand new BMW 2 Series Gran Coupe with a market value of RM199,177 will have a higher insurance premium than a brand new Honda Jazz with a market value of RM75,300. However, it's important to note that car market value depreciates every year, resulting in lower insurance premiums as the car's market value decreases.
The manufacture year of a car also affects car insurance premiums. Older cars tend to have lower insurance premiums compared to newer cars. For instance, a Proton Saga manufactured in 2016 will have a lower insurance premium compared to a Proton Saga manufactured in 2021.
No Claim Discount (NCD) is a reward scheme that affects car insurance premiums. The NCD rates vary based on different classes of vehicles. Private cars can have NCD rates ranging from 25% to a maximum of 55%. The higher the NCD rate, the lower the car insurance premium. It's essential to refer to the NCD rates for private cars in Malaysia to understand how it impacts insurance premiums.
The type of car insurance chosen also affects car insurance premiums. Comprehensive insurance is more expensive than third party insurance, while third party, fire and theft insurance is cheaper than comprehensive insurance but more expensive than third party insurance. It is compulsory for cars aged 10 years old and below to have comprehensive insurance, while cars older than 15 years old are encouraged to have third party, fire and theft insurance.
Car location is another factor that influences car insurance premiums. Generally, insurance premiums for cars in city areas are higher compared to cars outside of city areas. Additionally, car insurance premiums are higher for cars in West or Peninsular Malaysia than cars in East Malaysia (Sabah and Sarawak).
Driving record also plays a role in determining car insurance premiums. Good drivers with a clean driving record are likely to have lower insurance premiums. On the other hand, drivers who frequently violate traffic rules and have road accidents will have higher insurance premiums as they are considered high-risk drivers.
Occupation can impact car insurance premiums as well. Occupations that require driving to high-risk areas such as construction sites may result in higher car insurance premiums. This is because the car's usage due to the occupation exposes it to a higher risk of accidents and damages.
To calculate car insurance premiums, the basic formula includes the premium after NCD, additional coverage (if any), service tax (6%), and stamp duty (RM10).
In conclusion, car insurance premiums are influenced by various factors such as car market value, cars manufacture year, NCD, type of car insurance, car location, driving record, and occupation. It is crucial for consumers to compare coverages and premiums offered by different insurers to make an informed decision. Using platforms like Bjak can help individuals easily compare insurers and their offerings, providing up to 15 car insurance quotes for free.