Your Malaysian car insurance premium could be higher because of your behaviour

The calculation for your car insurance in Malaysia is mostly dependent on the engine capacity and the year it was made. However, did you know that there are other factors that will be taken into consideration by the insurance company before they come up with the amount payable?

Not just about NCB anymore

You would have heard of the Non-Claim Bonus or NCB where you get discounts each year if you do not make any claim from the insurance company. However, with more factors coming into play (since 2017), the insurer will propose a premium that could be lower or higher when underwriting your policy. The number of claims made, the type and age of the vehicle and your age and gender are the basic factors evaluated in the conventional method when buying your car insurance.

What else should you be concerned with?

Your car insurance premium might not be very expensive as it depends on the value and the year it was made. While you pay this once a year, you might not want to fall into the category of high-risk. Factors taken into consideration for determining your premium would include:

  • Security features – As newer vehicles are now packed with all types of high-tech security and safety features, the premium of the vehicle will need to make evaluations to ensure that you have sufficient protection when you are on the road. Older cars will have higher premiums because they do not have the current tech that the newer ones have. Some driver might have invested additional money into beefing up the security and safety of the car. This could mean you get to pay a lower premium.
  • Chances of theft – Popular cars in Malaysia tend to be at a high risk of being stolen. The older models like Proton Wira and Proton Iswara have always been the most stolen cars in Malaysia. If you are insuring these models, you would have to pay more premium for sure.
  • Location – The location where your car is would also play a part in determining the insurance premium. This is because certain parts of Malaysia are considered as high-risk for car theft (based on statistics and recorded cases).
  • Other upcoming factors – It has been suggested that premiums could be determined based on the driving style and record of the driver. This means that you could be subjected to a higher premium if your name comes up for many traffic offences in the past. It is also suggested that soon, the duration of your time on the road could be tracked and recorded too. This means your driving behaviour could be charted which then will determine if you are driving recklessly. If a driver is deemed to have good driving habits, it could mean lower premiums.

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