Factors Affecting Motor Insurance Premium

Most of us do pay for our car insurance. But, why some car has higher premium whereas some car is cheaper? Lets look at the factor contributing to the calculation of premium.
 

The Factors Affecting Motor Insurance Premium are:

Type of coverage: Comprehensive, Third Party Fire and Theft or Third Party

Third party: This type of policy covers death of, or injury to, other parties and damage to other people’s property. Under the law, the minimum requirement is that the policy provides cover for causing death of, or personal injury to, other parties.

Third Party Fire and Theft: On top of third party coverage, this type of policy further allows you to make a claim should your vehicle be stolen or damaged by fire.


Comprehensive:  Provides cover for personal accident and accidental damage to your vehicle and  against fire and theft, as well as third party death, injuries and property damage. Everything else being equal, this type of policy would thus cost more than other types of policies. You may add on optional benefits, such as coverage on additional accessories such as windscreen by paying a higher premium.  
 
Sum Insured: Based on market value

Engine Capacity (CC): The larger the Engine capacity, the higher the premium

Loading: Such as vehicle age loading, driver age loading etc

No Claim Discount: The discount given for not claiming insurance due to accident. From 0% to 25, 30, 38.33, 45 and the max will be 55%.

Other benefits such as legal liability, named driver, car accessorize cover etc.  The more benefits,the more you need to pay

And at last,you will need to pay RM 10 for the stamp duty.

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