Sharing you the best car insurance tips to help you make an informed decision before your next car insurance renewal.
Renewing a car insurance policy on your own ―be it online, at the counter or through an agent, can be complicated especially if it’s your first time.
While comparing benefits and rates online can be a simple process, you may still struggle to understand how car insurance works. With multiple quotes you have received, you may find it difficult to decide with all the insurance jargon and unfamiliar terms involved.
To help you understand car insurance and make better decisions, here are 5 things you should know before renewing your car insurance policy.
1. Premium rates are based on your risk profile.
One of the biggest misconceptions is that one’s car color will impact the rate of the insurance policy, which is not the case.
Insurance companies such as AXA Affin General Insurance (AXA Malaysia) consider many factors when setting premium pricing. The detariffication of car insurance introduced in 2017 has allowed insurers the flexibility to charge premiums based on your risk profile, taking into account factors such as your gender, age, usage of car, claims experience, vehicle model, occupation, etc., but never your vehicle color.
While this also implies that there may be differentiated rates for the same risk profile, you will get to enjoy a wider choice of plans and add-on covers at a better value.
But the rule of thumb is ― the lower risks you carry, the lower premium rates you will enjoy. So, be sure to drive safely on the road to enjoy lower rates!
2. Expensive cars don’t always cost more
You may be surprised to know that some expensive sedans or SUVs have a lower premium rate. This is simply because the car model may have better claim rates for accidents or car theft due to its security features, while a cheaper car in the market could cost more to insure because the model is prone to theft and has less safety features on the road.
3. There’s no such thing as “ask and you shall get discounts.”
While that may be the case when you renew your AXA car insurance online or directly at the counter as there is no agent commission involved, it’s not a normal practice for insurance companies in Malaysia to offer extra discounts unless customers are subscribed to a certain plan. However, you can maintain the premium rate quoted without taking any optional add-on covers like windscreen protection, flood coverage, medical expenses for all authorized drivers etc.
4. Your credit score has no effect on your insurance premium rate
Since having a car insurance for your vehicle is mandatory in Malaysia, rest assured that your credit score does not determine your premium rate. It could play a role in your rejected car loan application when you want to buy a new car, though. So, pay all your bills on time every month, keep your balances as low as possible and you’ll be good to go!
5. Car insurance follows the car, not the driver
When you insure your car and put your name as the main driver and owner of the vehicle, the benefits only cover you and not the other passengers, unless you add on Driver’s & Passengers’ Personal Accident coverage. This additional coverage provides personal accident and medical reimbursement benefits to you, your passengers, and other authorized driver(s) in the event of a road accident.
Renewing car insurance is like buying any other type of insurance. You will want peace of mind for yourself and your loved ones. Although every insurance company in Malaysia may have different premium prices, benefits and coverage should be at the top of your decision-making process to ensure you get the best protection.
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