4 Tips To Cut Your Car Insurance Costs |
No one thinks much about auto insurance, because having it is as natural as having to refuel. In fact, to renew your road tax, you need an automobile insurance policy.
Auto insurance is the single biggest expense that many car owners will pay each year as long as they own the car. This can be a significant amount depending on the price of the car.
There are ways that can help you lower your auto insurance policy costs.
1. Keep a clean slate
The more road accidents an individual has, the higher their auto insurance will be. If you are a safe driver and have never had an accident in your current car, you are eligible for a No Claims Discount (NCD), which can be up to 55% off your policy price. It pays to drive carefully.
2. Watch out for underinsurance or overinsurance
Auto insurance can be a confusing thing, and most people simply leave it up to their insurance agent to purchase auto insurance. However, do you know that you can adjust your insured amount based on your loan balance and the market value of your vehicle. If you want to lower your premium, you can lower your insured amount to cover the loan balance.
However, remember that cheap doesn’t always mean good and reducing your insured amount too much is not always the wisest decision. If you underinsure your vehicle, you risk paying money to pay for damages that cannot be covered by your policy in the event of an accident.
3. Select your vehicle carefully
Buying a new and luxurious car sounds great, but the reassurance that it can be overwhelming due to the high price of the car.
Sometimes buying a used car can help you drastically lower your auto insurance premium. For example, here’s how the annual auto insurance premium for a Persona CVT will decrease based on the value of the car over 5 years.
|1||54,600 RM||RM 1,699.10|
|2||44,226 RM||RM 1,429.38|
4. Ditch unnecessary coverage
When it comes to insurance, this is always a just-in-case scenario. No one can predict if or when an accident will happen. However, you can still choose to remove unnecessary coverage, such as collision protection if you drive an older vehicle or car accessories coverage.
Even though it is mandatory to purchase auto insurance, more thought should be given to selecting the best insurance policy for your car at the lowest cost.
Are you looking for a comprehensive auto insurance policy? Compare the best auto insurance in Malaysia and renew now with our auto insurance renewal tool.
This article was first published in October 2013 and has been updated for freshness, accuracy and completeness.
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