Motor Insurance covers damages caused to your vehicle due to an accident, theft and fire. It provides cover any third party who was injured in an accident involving your vehicle. Also, car insurance is mandatory in order to drive your car in Malaysia. Though the premium could be expensive, there are ways to reduce the premium.
Tips to Reduce Premium
- Compare Quotes: Do not buy a policy from a company where your friend bought it recently. Research on many insurers as possible (at least three of them) and get a quote from each of them. Compare the pros and cons of each of these quotes. Analyse them carefully to find a suitable policy.
- Vehicle’s Price: The premium amount is mostly based on your car’s price, its specifications and the cost of repairs. You can get a discount if the insurer is convinced that there is less probability of car theft or if the car seems to be safe. Before buying a car, compare the estimated premium for different cars and then, choose the right one.
- Bonus: Insurers offer discounts on your premium such as low-mileage discounts, renewal bonus and no claims bonus. Ask the insurer for any available discounts and bonuses before you purchase the policy.
- Insurance Excess: Excess or a deductible is an amount that you have to pay before an insurer pays for a car damage claim. Any compulsory excess will have a standard amount that cannot be changed. But you can negotiate for other excess. Such excess would be usually determined by your insurer, but you negotiate. If you agree for a higher excess, your premium would be reduced.
- Combine Policies: If you have multiple insurance policies for the same car from different insurers, combine them into one policy. You can save on premium and simplify the finance management.
- Multiple Policy Discounts: When you purchase multiple policies such as for multiple vehicles or different kinds of policies such as home, health or life insurance from the same insurer, you will get a discount on your premium.
- Compare Prices Before Renewal: The motor insurance policies need to be renewed every year. Check the prices offered by other insurers and switch over if you receive an offer for less premium.
- Half-Yearly Payments: Choose to pay half-yearly payments rather than monthly payments. A bigger sum can save you up to 2% of your premium.
Get Adequate Insurance
Do not under-insure your car to save money on your premium. In the event of a claim, the insurer will only pay out for the amount covered. If your car is under-insured, you have to pay the remaining difference from your own expenses. Instead, get sufficient cover for your car. Use the tips mentioned above to save money on the premium without compromising on the coverage.