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Criteria That Will Affect Car Insurance Policy Rates

Criteria That Will Affect Car Insurance Policy Rates Blog


Did you compare the cost of your car insurance to the friend’s policy and discovered that your rates are considerably higher? Motor insurance prices depend on multiple factors. Let’s take an in-depth look at the primary considerations that affect your car insurance policy rates!

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Driver Age

If you only acquired a driving license and you haven’t spent a lot of time behind the wheel, you are at a higher risk of getting into a road accident. That is why car insurance companies often increase the car insurance policy rates for this driver group. Those younger than 25 will likely face a higher policy cost than older drivers.

Driver Gender

The statistics related to road accidents in Malaysia doesn’t go in favor of males. The fatalities and vehicle accidents in this country involve men more often than women. It is why the agencies might increase your car insurance policy rates if you are a male.

Driving History

If we say driving history, we are talking about your history of traffic offenses. The more time you spend behind the wheel without a single offense, the better the odds of lowering the car insurance policy rates. But if you have multiple claims or caused accidents on your name, the odds are that the agency will be more cautious when determining the price.

Your Location

The Annual Transport Statistics published by the Ministry of Transport of Malaysia reveal information about the number of road accidents in various states. The reports show that the highest risk of an accident is in Wilayah Persekutuan, Johor, and Selangor. That is because of the busy highways and congested roads. On the other hand, Kelantan, Terengganu, and Perlis carry the lowest road accident risk. That is because these states aren’t as populated.

Car insurance agencies take these statistics into consideration, which is why your location affects your car insurance policy rates. If you live in a big city and plan on driving the busy highways frequently, the cost will increase. However, the price will go down if you are in a neighborhood where accident risk is lower.

Car Make and Model

New vehicles often have safety features you won’t find in old cars. If you have additional safety functions, that might lower the car insurance policy rates. Another thing that could affect the car insurance cost is the make and model of your car. Once again, statistics play an essential role. According to the details published by the General Insurance of Malaysia, Toyota Hilux and Proton Wira are two vehicles that the thieves most frequently steal in this country. In 2017, thieves stole 537 Hilux vehicles and 654 Wira units. Some other models that are popular among the thieves include Peugeot 508, BMW 7, Ford Courier, and Lexus RX350.

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Other Factors That Affect Car Insurance Policy Rates

Here are some other things that could affect your policy price:

  • Add-ons –if you want some additional perks added to your policy, such as legal liabilities of and to passengers, you might need to pay extra.
  • Driving experience – you might not be a young driver, but if you don’t have any experience, the rates could increase.
  • Mileage – the distance you usually cover with your vehicle might affect the price, too.

While comparing prices offered by different agencies is essential, make sure to choose a reputable insurance company. That way, you will be safe that they will honor their obligations and help you resolve any claim in the shortest possible time frame.

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