Car Insurance for Beginner: How Much Is Car Insurance (Part 2)
Car insurance is undeniably one of the biggest expenses of owning a car. But do you know how much you should pay for your car insurance? Here's a simple Guides to help you understand how much to pay for your car insurance and what affects the price.
Factors That Affects Car Insurance Price
You might be wondering, "Is car insurance important? Do I really need it?" The answer is a resounding YES! Car insurance is essential for several reasons, making it a necessary choice for all drivers. Here are 6 key reasons why car insurance is important:
The cost of your car insurance premium (or price) depends on several factors. Here are 7 factors that affect your premium.
Car insurance type
No-Claim Discount (NCD)
Sum insured (car’s market/ agreed value)
Car’s age
Location
Driving record
Occupation
For more specific information, you can check your car insurance price with us!
What is Sum Insured?
The sum insured is the maximum amount a car can be insured for. This amount can be determined in two ways:
Agreed Value: This is the amount agreed upon by both the car owner and the insurer, based on the car’s model and year.
If the agreed value is RM35,000 and an accident occurs, the insurance company will pay RM35,000 in total compensation.Market Value: This is the value of your car right before any damage occurs.
If the insured amount was RM35,000 but the market value at the time of the accident was RM30,000, the insurance company will compensate based on the market value of RM30,000.
What is No-Claim Discount?
No-Claim Discount (also known as NCD or No-Claim Bonus), is a reward from your insurer for not making any claims over a certain period. In simple terms, if you didn't make any claims last year, you'll get a discount on your next car insurance renewal.
NCD Rate
How to Check NCD Rate
You have two options to check your current NCD: visit the Central NCD Database at www.mycarinfo.com.my/ncdcheck/online , or check it instantly for FREE with us!
Check out this comprehensive NCD Guides for more information!
Additional Charges on Your Car Insurance Price
6% Sales and Service Tax (SST)
Stamp duty: RM10
Commission (if purchased through an agent)
Add-ons (if any)
How to Calculate Car Insurance
Comprehensive Car InsuranceBasic premium + 6% SST + stamp duty + add-on (if any) - NCD (if any)
TPFT Car Insurance(75% x basic premium) + 6% SST + stamp duty + add-on (if any) - NCD (if any)
TIPS: Want to check your car insurance price instantly and for FREE? Just let PolicyStreet help you! Click HERE and get your car insurance price in just 5 minutes!
Note: Different insurers offer different add-ons.
In conclusion, car insurance isn't just a legal requirement; it's essential protection for every Malaysian car owner.
Renewing your car insurance is easy with PolicyStreet. Explore your options today and let us assist you in finding the ideal car insurance plan that fits your budget and requirements. We're here to Guides you through the process, ensuring you're fully protected on the road!
