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7 Ways For You to Save Money on Car Insurance

BY Team Loanstreet

Updated 07 May 2024

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*This article was first written by Faiz Rahim. The content and information on this article might be changed or updated periodically by Team Loanstreet without notice.

“Walao-eh, so expensive. Got no money though, renew later je lah.”

For sure this thought has crossed your mind every year, right? Without a doubt, it’ll never miss coming especially when it’s time for you to do the renewal for your car insurance. At times, it could even cost you over thousands ringgit. That’s a lot of moolah to be spent in one sitting!

However, whether you like it or not, you’ve to buy it. Ya lah, you can be fined up to RM1,000 or jailed up to 3 months or both if you don’t have car insurance (under Road Transport Act 1987). So, either that or buying one? Better to just spend your money now.

When it comes to car insurance kan, there are various reasons why it would be expensive. You may read this article to know more. But, no worries as there are 7 ways that you can to save some money on car insurance.


What's covered in this article?

1. Insure your car correctly (no overinsured/underinsured!)

Here’s a rule of thumb - insure your car with the market value (can check here) at the time. By doing this, you’ll only spend a reasonable amount of money. You can also go for the agreed value which is an amount that’s been agreed by the insurance company - based on your car’s model and year. But, make sure not to overinsured or even underinsured it.

The thing is if you’re overinsured than the market value, you’re spending more money than you need to - it’s a waste of money. 

But, if you’re underinsured, you’ll need to bear some of the cost as the insurance company will only pay a portion of it. If that’s the case, what’s the point of car insurance? That’s why it’s better to just insure your car with the current market value - it’s much more beneficial, they say.

ALSO READ: Are You Over-Insured or Under-Insured?


2. Choose coverages that suit you

As we all know, there are 3 types of car insurance, which are third-party, third-party, fire and theft, and comprehensive. If you got the first two, you can’t include any additional coverages. It’s a whole different thing if you get comprehensive car insurance.

Let’s just say if you added all coverages that you can get with the comprehensive coverage, that’s gonna leave a hole in your pocket - so, it’s advisable to don’t do that.

Instead of adding it all, just pick which will benefit you the most such as the windscreen coverage. You must be wondering how you can choose, right? It’s easy - choose one that’s most practical for you. 

If you live and/or work in the areas that are prone to be flooded, get yourself the special perils coverage. If your areas are unlikely to have any riot, perhaps you don’t need the strike riot and civil commotion. Simply put, just choose coverages that are suited to your needs.  


3. Keep your eyes on the promo

That’s right, promo season! If you know where to look and when you’re likely to find yourself a pretty good deal. It could be around festive seasons or special date such as 10.10, 11.11 and 12.12 - year-end sale pun ada what.


4. Maintain a good driving record to get a discount

Do you know that your driving records will affect the insurance price? Welp, now you know. So, be a responsible road user ok!

If you’re a reckless driver that got into an accident like every other month, you’re likely paying insurance higher than a safe driver. Ya lah, for sure the insurance companies will look at you as a high-risk driver. It made sense lah because the more accidents you got yourself into, the more claims you’ll make and lastly, it’ll affect your no-claim discount (NCD).

However, if you’re a good driver with clean records every year, you’ll get yourself a good discount whenever you make a renewal. You can even get up to 55% discount if you’ve managed not to make a single claim in 6 years. Talk about being a responsible driver!

ALSO READ: Want to Transfer Your NCD to New Car/Insurer? Here’s HOW!


5. Don’t make claims, fork out your own money (if you can lah)

Unfortunately, not everyone has the best luck in driving. One accident or two is somewhat granted for everyone (right?!). No big deal, you can file a claim but what if you don’t?

Hear us out, why don’t you just use your own money? If it’s just a minor fender bender and the repair cost isn’t that high, just fork out lah. Understandably, you can’t do it every time especially if the cost is too expensive. So, just do it whenever you’ve got the money. 

This way, you don’t have to make a claim. Thus reducing your claims history and your NCD won’t be affected as well. That’s a smart move, right there!


6. Raise your deductibles (excess)

In case you guys don’t know, a deductible is an amount you need to pay first before the insurance company does. It’s important to note that most insurance policies are subject to an excess clause. There are 2 types of deductibles, which are: 

i) Compulsory Deductible

According to Persatuan Insurans Am Malaysia (PIAM) Motor Tariff, drivers are required to pay RM400 if they...

  • Have an L (Learner) or P (Probationary) driver’s license
  • Below 21 years old
  • Not listed as a named driver in the policy

ii) Optional Deductible

The amount for this deductible depends on the driver’s age, the car’s age, and the claim history. This will be added to the basic premium rate. In a way, this is where you can save on your car insurance. The higher the deductible you pay, the less you’ll have to pay for your insurance.


7. Shop around & compare prices!

Nowadays, everything can be done online where it’s easier to shop around. Not to mention, you can also compare the prices between different sites and insurance companies as well. Isn’t that great? So, before you decide to renew, make sure you’ve checked every possible option.

It’s also important to remember that when it comes to comparing, it’s not just about the price. You’ll need to compare what’s in the package as well. Ask yourself whether the insurance that you bought is worth the price and cost-efficient or not. If yes, that’s good and if it’s not, continue to look around. There's bound to be one that suits you - it might even come with discounts! 

The good thing is that you don’t have to look any further from Loanstreet. You can just easily get free quotes that you can compare the price. Then, you can just buy one that you like. Just click the image below - 5 minutes can settle!

Happy doing renewals!

*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.  


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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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