How to Check Car Insurance Price
If you own a car, you are likely familiar with the term “car insurance.” Some might call it a necessary evil, considering it is one of the biggest expenses for your car.
Now, why do different cars come with different insurance prices, and how can you check the price for your car insurance?
These questions may be on your mind, and we are here to simplify the answers.
What Is Car Insurance?
Car insurance is a shield for your car. It is a contract between you and your insurer.
To put it in simpler terms: You pay a premium, and they promise to cover certain losses as laid out in your policy. This coverage takes care of your property, liability, and medical expenses, ensuring protection not just for you but also for your passengers and others involved.
Why Car Insurance Is Important
Understanding the importance of car insurance is crucial, and YES, it is important!
- It is the law
- Requirement for car loan application
- Protection for your car
Driving without car insurance not only violates the law but can lead to serious consequences. According to the Road Transport Act 1987, drivers lacking car insurance coverage can face prosecution under Section 90(2), resulting in a substantial fine of up to RM1,000 and a 12-month licence suspension.
If you are planning to fulfil your dream of owning a car through a loan, buying car insurance is non-negotiable.
Malaysian banks mandate the purchase of car insurance or Takaful when applying for a car loan. This requirement stems from the fact that the bank, acting as the lienholder, has a legal stake in your car until the loan is repaid. The aim is to safeguard their investment, as they are accountable for any damages within the car’s limits.
It is essential to note that different banks may need different types of car insurance, so staying informed is crucial before the application process.
Beyond legal reasons, car insurance offers vital protection for your vehicle. It shields your car from damages caused by accidents, falling objects, fire, and theft. Some insurers go the extra mile by providing coverage for natural disasters and riots. The cost of repairing a vehicle after an accident can be expensive, making car insurance a necessary investment.
Factors That Affect Car Insurance Price
The cost of your car insurance premium can vary based on various factors, including:
- Type of car insurance
- Sum insured
- Market value of car
- Age of car
- Engine CC
- Your location
- Your driving record
- Your gender
- Your occupation
- No-Claim Discount (NCD)
Types of Car Insurance
There are 3 types of car insurance in Malaysia: comprehensive, third-party, fire & theft (TPFT), and third-party. Here’s a summary to make it easy for you to understand each type.
| Coverage | Type of car insurance | ||
|---|---|---|---|
| Comprehensive | TPFT | Third-party | |
| Bodily injury to third-party | |||
| Theft, attempted theft, and fire | |||
| Damage to third-party’s property | |||
| Damage to your car due to accident | |||
How to Check Car Insurance Price
Checking your car insurance price is easy, and there are various methods to do so. Keep in mind that the price can fluctuate each year due to the factors listed above.
Here are 3 convenient ways to check your car insurance price:
- Directly with insurer
If online car insurance renewal services seem unfamiliar, you can head directly to your insurer branch. This allows you to receive information and explanations about the protection directly from the officers. - Through agent
Getting assistance from insurance agents remains a popular choice for many car owners during insurance renewal. If you have a trusted insurance agent, you can check your car insurance price by reaching out to them for a quote.While dealing with agents is convenient, keep in mind that they might be biassed as they often recommend insurers they are affiliated with.
- Online
Arguably, the easiest method, checking your car insurance price online is fast and easy.For instance, just visit PolicyStreet’s website, and you can get a quote in just 5 minutes. Here, you can compare prices from major insurance and Takaful providers at once. Plus, you can even renew your road tax simultaneously!
With the majority of insurers offering online renewal services, take advantage of this efficient and user-friendly option. This means you can go through the process comfortably, taking your time without any added pressure.
How to Calculate Car Insurance
- Calculate your basic premium
- Calculate your payable premium
- Comprehensive car insurance
- TPFT car insurance
Comprehensive rate for the first RM1,000 sum insured + RM26 for each RM1,000
Basic premium + 6% SST + stamp duty + add-on (if any) – NCD (if any)
(75% x basic premium) + 6% SST + stamp duty + add-on (if any) – NCD (if any)
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 Buy / Renew Car Insurance
Purchasing and renewing car insurance is a straightforward process.
- Decide the type of car insurance
- Choose your insurers and get quotes
- Compare the quotes and coverage
- Decide on the insurer that best suits your needs
- Choose any add-ons
- Pay your premium and get protection
But… What if we tell you that PolicyStreet allows you to get customisable and affordable car insurance that suits your unique needs and budget?
Whether you are looking for the best car insurance policy, checking car insurance prices, or comparing quotes, we got you covered! With just 3 simple steps, you can obtain instant FREE quotes, making the entire process quick and easy.
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Where to Buy / Renew Car Insurance
There are various channels available to purchase and renew your car insurance, both online and offline, including:
- MYEG (online / branch)
- JPJ branch
- Post office
- Insurer (agent / online / branch)
- PolicyStreet (online)
Conclusion
To conclude, learning how to check for car insurance prices puts you in the driver’s seat when it comes to safeguarding your car. Knowing the factors that influence these prices allows you to choose coverage that fits both your needs and your budget.
And remember, getting quotes from various insurers and comparing them is crucial before making a decision. This ensures you have all the information you need to make an informed choice.
So, the next time you are exploring car insurance options, armed with this knowledge, you can confidently navigate the choices and make decisions that make sense for you.
Here is a tip: Policystreet can help you check your car insurance price for free and instantly, without any hassle. Just get in touch with us, and we will handle all the details. It is like ensuring your car and your budget are in good hands. Drive with confidence!
