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Car Insurance Policy Price For Young Drivers

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We all know that having a valid car insurance policy is mandatory in Malaysia. If you drive without one, you can pay a fine, and even bigger problems occur if an accident happens. If you are the vehicle’s owner, you are the one who should sign a policy with the insurance company. Numerous factors determine the price that the driver pays for the insurance. The general rule is that car insurance policy is high for young drivers, but why is that the case? In this article, we will reveal several reasons that might be behind the high cost of your car insurance policy.

No Information About The Type Of Driver You Are

If you are young, the odds are that you recently acquired your driving license. It might be your first time dealing with that insurance agency, or it is the first car insurance cover you ever sign. Whatever the reason, the provider doesn’t have any information about the type of driver you are. That is why they employ the approach better safe than sorry. You might be a reckless driver who is irresponsible on the road, which increases the risk of an accident. Until they learn more about you, they will keep the policy cost higher than usual. The good news is that the car insurance policy price will reduce over time. However, you will need to show them you are a responsible driver, which means avoiding claims and accidents as much as possible.

The Statistics Don’t Speak In Your Favor

The authorities are keeping track of the accidents and casualties on the road throughout Malaysia. Unfortunately, the statistics don’t speak in favor of your drivers. The data shows that those who are young or recently obtained a driving license are at more risk of participating in a road accident than others. According to the reports, the Malaysian Government even considers increasing the minimum driving age. When it comes to car insurance agencies, they look at the things from their angle. If there is a higher risk of an accident happening, the policy cost will be higher. That is why young drivers often pay more than their more experienced colleagues.

You Already Have A History Of Claims

Even though you are a young driver, you might have participated in an accident already. That is why you filed a claim to your insurance provider. It is also why you are now unable to take advantage of the no-claim bonus. You might need a while to prove to insurance companies that you are a reliable driver. Filing a claim is a setback that you should avoid, especially in case of small damages that don’t exceed the value of the no claim discount (NCD).

What Else Could Increase The Cost Of Your Policy?

Here are some other factors that could increase your policy’s price:

  • Old vehicle – your car might not have the latest safety features, and its components are old in general. That is why it is a risk on the road, and the insurance providers increase the premium cost for them.
  • Driving around the city – the statistics indicate city roads are the ones where most accidents occur. If you are living in a big city, the odds are you will pay a higher insurance cost than usual.
  • Gender – once again, the insurance providers turn to statistics. They say men participate in more accidents than women, which is why they are riskier on the roads. If you are a male, expect a higher policy cost than for females.

The price of your desired insurance deal might also depend on chosen add-ons and many other factors. You can always ask for estimation from multiple companies to ensure you get the best possible deal.

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