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7 Reasons Why Your Car Insurance Is Expensive

Updated 07 Feb 2020 – By Team Loanstreet

We all know that car insurance is compulsory, and Malaysian car owners can’t escape from it. Obviously, this adds up to your car purchase, but it’s better to be safe than sorry, kan?

So, you might be wondering, “Why is my car insurance so expensive?” Well, in case you didn’t get the memo, there are many factors that affect car insurance rates in Malaysia. If you want to know, read lah.

1. Young, wild & free?

Honestly, your age has something to do with it. Based on the number of road fatalities in Malaysia, youths and first-time drivers are likely to get road accidents. Therefore, young drivers between the age of 16 and 25 will pay a higher premium than other experienced drivers on the road. In other words, that P sticker also stands for Pay (more).


2. Sorry, men!

The second factor that affects your car insurance premium is your gender. If you’re one of the woke people, you might call this sexist. But really, the statistics have shown that transport accidents are the third principal causes of death for men and fifth for women. Of course, the numbers are debatable since there are more men than women in Malaysia. But unfortunately, male drivers can’t run away from the reality of paying a higher premium than female drivers. 

3. City life costs money

Urban living has its disadvantages. A look into the annual Transport Statistics shows that Selangor, Johor and Wilayah Persekutuan have the highest number of road accidents. All thanks to the congested roads and busy highways, these states recorded a high frequency of accidents, traffic violations and vandalism.

Guess which states have the least number of road accidents? You guessed it, the rural states. Perlis, Terengganu and Kelantan recorded fewer accidents than the populated states. In places where the likelihood of accidents is lower, the premiums are lesser. 

4. Old is not always gold

Just when you think you’re saving money from purchasing an old car, you’re likely to pay a high premium. The reality is, old cars are considered high risk on the road. Outdated safety features and vehicle failure probability are some reasons why. In some cases, old cars are not eligible for insurance too. If your car is above 15 years old, third party car insurance policy such as Malaysian Motor Insurance Pool (MMIP) will keep your car protected.

5. “Your grandfather's road ah?”

Remember when your parents told you to drive safely? If you behaved like a rebel on the road, expect to pay the price in your premium. Generally, insurance companies will look into your driving record to see if you’re a high-risk driver. As you know, higher risk equates to a higher premium.

Before finalising the details of your premium, insurance companies will review every traffic violation, summon, and past accident. If you’ve been careful on the road, that’s great! To maintain a clean driving record, remember to obey the traffic rules, drive within the speed limit and stop answering phone calls while driving. Your girlfriend or boyfriend can wait.


6. Your car is thieves' eye candy

Image source: Sinar Harian

Unfortunately, there are certain things that we can’t avoid such as the likelihood of your car being stolen. In Malaysia, certain car models are highly targeted by thieves.

A news article once shared that Proton Wira and Toyota Hilux are unfortunate favourites. Other models such as Proton Iswara, Perodua Myvi and Proton Waja also made it into the list of High-Risk Theft Vehicle. It’s rather regrettable since these cars are popular for their affordability. If you own any of these cars, you can see why you’re paying a higher premium than most.

7. You have a thing for add-ons?  

It’s natural to like add-ons but dislikes the additional costs. When it comes to the car insurance premium, they’re no different. All insurance companies provide a range of attractive and valuable add-ons. If you have extra money, you should take advantage of it.

Let’s take Zurich’s Z-Driver, for instance. Aside from the comprehensive coverage, do you know they offer generous discounts? If you practice safe driving, you can score 10% off on motor premium. 
On top of that, there are also discounted voluntary excess and affordable water damage coverage. In the likelihood of theft or accident, their unlimited use of a courtesy car will put your mind at ease as well as the Personal Accident coverage. For the price you pay, it’s a win-win situation if you ask us.


So, how?

We know that car insurance can be expensive, but it’s an investment in your road safety. What would you do if your car is stranded on the highway or caught in a flood? Most of the time, your car insurance will save you. 
To make your life easier, get an immediate free quote for your car insurance from Loanstreet. Lagi best, you can straightaway purchase it together with road tax without hassle. 

Be safe!

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