How to save on car insurance in Malaysia?
Unless you work in the car insurance industry, you are probably not looking forward to insurance renewals. With the new year already started, it has yet again crawled upon us. This extra expense at the beginning of the year often has us clamouring for ways to save as much as possible. Here are a few ways how you can save on your car insurance.
Avoid over insuring
You insure your car for a specific sum. The more that amount is, the more premium you need to pay. So, how much should you insure your car for? The market value of the car is a good starting point. In the unlikely event of an accident, even your insurer will only compensate your claim based on the market value of your car at the time of your claim. So, why bother insuring your car for more than its worth in the market? At the same time, you cannot insure your car for less than its market value. If you do this, the insurer will impose a penalty when you make a claim, hence, resulting in a lower payout. Thus, it is necessary that you insure your car to as close to its market value as possible. What’s even better? You can look for plans which offer an agreed sum plan that is decided when the policy is purchased. For finding the market value of the car, several valuation reports can provide you with a rough estimate.
Choose additional coverages which are best for you
Yes, these additional coverages will without a doubt hike up your premium in the short run. But opt for a few practical ones, and you will be busy patting your own back when something goes wrong. Unexpected things like windshield damage and even re-tinting are often covered by additional coverage without putting a dent on your No-Claim-Discount. Natural disasters like flood and landslides might be common in some areas and opting for such coverage is often a wise decision. On the other hand, insurance cover for upmarket car accessories that you never end up installing in your car is only going to shoot up your premium unnecessarily. Then there are risks like damage caused during riots and strikes which might be relevant to you if you are often parking in the open. These may or may not apply to everyone but are still worthy of a look.
With insurance products and premiums being based on market prices, your risk profile now carries a lot of weight when buying car insurance. This means people who are prone to driving recklessly will need to pay a little extra for the privilege. This risk profile, however, depends on different factors. These include sensible things like the nature of past claims and driving & traffic offences to arguably less sensible ones like your gender and age. So, newer drivers would like to keep safe with the help of driving aids and anti-theft devices. Older drivers cannot do a lot to affect their risk factors. They can, however, opt for a telematics insurance plan that monitors driver behaviour and rewards good ones with premium discounts.
Many buyers will never get to know about the cuts they can avail solely because they will never ask their agent about it. Discounts are often offered for everything from multi-car plans to extended loyalty. People insuring for higher amounts can even ask for the delivery and processing fees to be waived off. With so many options available on the internet, it should be noted that it is often cheaper to buy direct than via an agency which will act as a middle-men and increase the cost only.
Not just cost, there are other parameters also like coverage, terms, extras, and quality of service which are often just as valuable as the price you pay. The internet can prove to be a useful tool in this effort. Check out the websites of the insurance providers or simply call them to find the best plans they currently have on offer.
With these handy tips, saving on your car insurance premium will be much easier. But just like buying a fire extinguisher, hopefully, you will never end up in a dire need to use it.