Subscribe to Our Newsletter

We know you love savings. Sign up for more!

6 Ways To Get Cheaper Car Insurance Premium

Updated 26 Jan 2021 – By Darian Skazar


In these very stressful times where people are losing jobs and getting pay cuts, there are only so many subscriptions we can cancel (bye Netflix, Spotify, Viu). But the one thing that we cannot say bye bye to is... insurance! That’s the infinity gauntlet of the real world cos one snap and you can save yourself a tonne of money! There is life insurance, medical insurance, health insurance and even pet insurance.

But today, we will be talking about insuring your vehicles and yourself while driving. So let’s see the 6 ways you can cut down your car insurance premium while still enjoying some Netflix and chill or Viu and venery.

Note: We are using admin’s Nissan Almera (1.5) as a base example.
 





1. Gotta compare them all!

Like all grandmothers in grocery stores, you have to compare which company or platform gives you the best bang for your buck (no pun intended). All you have to do is google some websites that can get you close comparative estimates of the pricing and benefits by issuers. If you’re malas, the link is in the next paragraph.


For example, with admin's current Nissan Almera, the comprehensive coverage will be priced around RM1000 to RM1200 yearly. But after some research, admin found out that the price can estimate around RM900 je! Like most things in life, it doesn't come easy, so you gotta do your due diligence. Here’s an excellent place to start: Compare The Best Car Insurance in Malaysia & Renew Road Tax Online.


 

2. Everyone gets the add-ons that nobody actually needs! 





Some car insurance premiums automatically add-on coverages and charge you for it without your knowledge. For example, if you don’t live in a flood-prone area, you wouldn’t need the flood coverage and that would help lower your premium amount. So make sure you read your policy carefully and pick and choose something that suits your needs!

If you need the flood coverage, check out this article on how to protect your car in case of a flood.

 

3. NCD - The Big Daddy of Discounts

No-Claim Discount (NCD) is the holy grail of saving your bank account on your premium. What actually is NCD? As stated in our previous article about transferring NCD, NCD is a discount that you’ll get every year when you want to renew your car/motorcycle insurance. Assuming you don’t make any claims from year to year, your NCD entitlement will increase to a maximum of 55% after the 5th year.

Here are the numbers for your slumbers: 
 
Period of No Claims Made NCD Entitlement
1st Year 0%
2nd Year 25%
3rd Year 30%
4th Year 38.33%
5th Year 45%
After 5th  Year 55%

That means an RM 1,000 premium after the 5th year saves you RM550! That’s an easier cash gain than having 200,000 units in your ASB Savings.

 

4. Save based on your Mileage!



Typically, your premium is based on your vehicle specifications, driving record, residential area and even age (because your reflexes tend to slow down after a while). But the interesting thing is that mileage is almost never considered, except on PrOmilej.

So, if you don’t travel much, the rates on PrOmilej are exceptionally worthwhile! And another bonus of not travelling much is when you decide to sell your car, it’ll be much easier!

Based on admin's car, with average car insurance premium between RM1000 to RM1200, admin can save up to 40% if drive less than 5000KM in total. That puts the premium at a mere RM600! This is of course before any NCD deduction (yes, it’s stackable like a game of jenga on a boring MCO day).

 

5. Discount?! Discount?!

Malaysian’s just love a good discount innit! Clothes discounts, house discount, credit card also discount, and not to mention how much Shopee earned on 11.11 in 2020. Well, guess what? Car insurance also can! Some insurers do give cash rebates and discounts. Best part? You can do it online! Since MCO cannot go out kan. So alang-alang je la!

 

6. Drive Safe = More Savings



Did you just say “what?!” in your head? What indeed!

Being a safer and more responsible driver on the road can actually save you money on your premiums! How? With DriveMark, you can get up to 30% rebates on top of your NCD based on your braking, speeding, acceleration, and cornering on the road. All you have to do is just download the app and register. You don’t even have to open the app! It will detect movement on its own in the background.

So the next time someone says, “Drive safe!” You can reply with, “Totes, I need to afford lunch esok!”
 


Now with all that said, let’s do a hypothetical. Here’s the scenario:



Ravi drives an Axia 2021 SE Automatic Car. He’s a responsible law-abiding citizen who is a saint on the road. He’s always keeping to speed limits, never cutting traffic lights, and always stopping at every corner he needs to like most of us do kan? ;)

In Ravi’s case, a regular premium would cost him around RM 1,150*. Ideally, if he has the highest tier on DriveMark (Level 7) at 30% discount, PLUS the No-Claim Discount (NCD) of the maximum 5 years at 55%, he will receive a total of 85% rebate off his premium which puts his cost to a whopping RM 172.50 per year only! What in the holy mother of discounts?! 

Pair that up with a good car loan deal and you can sleep soundly at night on stacks of cash (joking, please invest that money kthanksbye). Although keep in mind that Drivemark only provides that big fat discount if you car is 10 years and younger okay, so make sure you go through the FAQ first.

*calculations are estimates only k!

And now you know how to be kiam siap with your insurance premiums. All you need is a low budget car, have immaculate roadside discipline, and be female; then you’re on your way to becoming a millionaire!

Drive safe! 

 
Continue reading...

Suggested Articles

Prudential and Shopee Introduces Insurance Solution for Infectious Diseases

Prudential & Shopee Introduces Insurance Solution for Infectious Diseases

When can I claim insurance for floods? Here is the answer we got from the agent ...

Protect From Flood: When Can You Can Claim Your Insurance?

AXA AFFIN Introduces AXA eCombo (a 3-in-1 Customisable Online Protection)

AXA AFFIN Launched AXA eCombo (3-1 Customisable Online Protection)