Why Car Costs Quietly Spike During Festive Seasons

Car costs often feel like they jump out of nowhere around major holidays. Whether you’re travelling for the upcoming Hari Raya, Chinese New Year, Deepavali or year-end holidays, here’s a short, fact-checked explainer of what actually causes those hidden spikes and exactly what you can do about them in Malaysia.

1. More cars on the road ? more accidents, more claims

During major travel periods traffic volumes rise sharply and accident frequency increases. More accidents mean more claims across the motor insurance system, and that higher claims frequency is a key driver behind future premium pressure and higher insurer loss ratios. This is why insurers and industry bodies closely monitor festive-period accident trends.

What it means for you: even if your current policy premium doesn’t change mid-term, a spike in claims this season can influence market-wide pricing in the next renewal cycle.

2. Workshop & parts demand rises = wait times and repair costs can increase

When thousands travel at once, workshops get busier and spare-parts suppliers face heavier orders and longer lead times. That can translate into slower repair turnarounds and, in some cases, higher repair or labour quotes — especially for non-standard or out-of-stock components. Many local garages also run busy-season schedules which reduce immediate capacity. (Workshops commonly promote CNY service slots, which shows demand patterns near festivals.)

Tip: service your car before the peak travel window and book repairs early to avoid premium repair rush pricing and long waits.

3. Small mistakes at renewal become expensive (NCD risks)

If you claim an own-damage claim during a high-travel season, you may lose (or have reduced) your No-Claim Discount (NCD) at renewal — which directly raises your next-year premium. Always check your NCD on the Central NCD Database (MyCarInfo) before renewing and resolve any discrepancies with your insurer.

Quick action: verify NCD, request restoration letters if recovery/subrogation succeeds, and avoid small avoidable claims where paying out-of-pocket is cheaper than losing NCD years.

4. Add-ons, excesses and late renewals magnify costs

During festive seasons people often rush renewals and accept a quick quote without matching cover, excess and add-ons. A low headline premium with a high voluntary excess or missing add-ons (e.g., windscreen, towing) can cost more when you need help. Also, letting your policy lapse can forfeit your NCD if the gap is long enough. Always compare total coverage, not just the price tag.

5. Policy & macro effects: supply-side and market changes

If a season produces an above-normal loss year for insurers, underwriters may tighten offerings or adjust pricing across the market later. Industry reports show the Malaysian motor-insurance market is growing and sensitive to changes in loss ratios and operating cost, hence concentrated seasonal losses can feed into broader pricing cycles.

How to avoid getting stung (short checklist)

• Check NCD on MyCarInfo before you renew. Resolve errors early.

• Service early. Book routine checks before the travel surge to avoid premium workshop rates and delays.

• Compare like-for-like quotes. Match cover, excess and add-ons when you shop around.

• Avoid small claims if the out-of-pocket cost is lower than the long-term NCD loss.

Use trusted promos that lower your effective cost without reducing cover.

ALT Text: Hustle and bustle of Bukit Bintang, Malaysia

Promo highlight: PolicyStreet — free road tax & Drive+ perks (how it helps)

To help offset higher renewal bills, PolicyStreet runs renewal promotions that directly reduce out-of-pocket costs. The current Betul-Betul FREE Road Tax campaign (and Drive+ membership perks) lets eligible customers enjoy road-tax discounts or capped free road tax when they renew via PolicyStreet’s portal. This can meaningfully lower your immediate renewal cost — especially useful if premiums are up because NCD changed or repair costs rose.

How to claim (follow PolicyStreet steps):

1. Visit car.policystreet.com and request a car insurance quotation.

2. Renew your car insurance between 25th until month-end (campaign runs Jan–Apr 2026), no time-of-day restriction.

3. Add Road Tax under the Add-ons section — the discount applies automatically.

4. Add and select a Drive+ Membership tier (Lite, Standard or Premium) for extra benefits.

Note: offers are subject to current T&Cs, caps and eligibility, always check PolicyStreet’s campaign page before you buy.

Final word — plan now, save later

Festive seasons concentrate risk, demand and delays. The result is a quiet but real rise in the true cost of motoring, from repairs and longer waits to the longer-term effect of more claims on premiums. The best defence is simple: check your NCD, service early, compare fully, and use legitimate renewal promos to shave your immediate bill.