Motor Insurance De-tariff - Is it Cheaper?

vr2turbo

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May 11, 2010
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I thought this has been applied since ages.

Before this, the insurance only covered for the car. But starting last July, it include car + risk of the driver.

And after asking some of my friends, their insurance tariff increase around 150 to 200 from previous years.
My friend who works in insurance mentioned insurance companies loses out in Auto Insurance, so how can they reduce further....lol
Looks like we going to have to pay more, like 10 years old car loading, then 15 years, mine is 26 years, kena the highest loading....:banghead:
 

Sidchan

Junior Member
Oct 2, 2017
18
1
3
Kuala Lumpur
any recommended insurance agent around Shah Alam? need to renew soon before December


Yes you are right. Now that the insurers are free to price a risk profile accordingly, everyone should and is encouraged to shop around for the best quotation for your motor insurance. The pricing models may be similar for some companies but chances are they are different.
 

Apeng08

Active Member
Senior Member
Nov 24, 2008
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1,508
Cheaper my sorry flabby fat ass.

They ask you a few other things and start loading which balances out the savings to no savings.

- Your age : The younger you are the higher the insurance
- When was the last time you claimed? Within 5 years got claim - higher insurance
- Where do you park your car? Covered in landed or in apartment? Any sort of exposure means higher insurance
- Age of car : older is higher tariff. 17 year old car loading 10%. Older than 7 years is 5%. Older more loading.
- Is car modified? Yes higher insurance.
- Is your car high performance? Large CC? Yes higher insurance.

I got my 10% walk-in discount and get it countered with my 1JZ being 2.5 and the car being 17 years old. I have max NCD and no claims in the last 10 years end up the insurance is the same as I would have paid before the de-tariff.

The only way to get a good proper discount is to have a friend work in an insurance company and have them remove all the stupid loading and give you flat rate without loading. Then cheaper.
Sigh, have to re do and understand all over again. :mad:
 

adibkhld

Junior Member
Oct 2, 2017
6
2
3
Kuala Lumpur
My friend who works in insurance mentioned insurance companies loses out in Auto Insurance, so how can they reduce further....lol
Looks like we going to have to pay more, like 10 years old car loading, then 15 years, mine is 26 years, kena the highest loading....:banghead:
Hahaha. They thought we buy new car every year :driver:
 

Apeng08

Active Member
Senior Member
Nov 24, 2008
48
1
1,508
I thought this has been applied since ages.

Before this, the insurance only covered for the car. But starting last July, it include car + risk of the driver.

And after asking some of my friends, their insurance tariff increase around 150 to 200 from previous years.
If you were to say this, Lets say im paying RM1.5K now, the new one indirectly will be RM1.7K or so? Still money, can eat a lot with that amount wey :stupid:
 

Nicholasng925

Known Member
Jul 30, 2014
51
12
508
31
Kuala Lumpur
My friend who works in insurance mentioned insurance companies loses out in Auto Insurance, so how can they reduce further....lol
Looks like we going to have to pay more, like 10 years old car loading, then 15 years, mine is 26 years, kena the highest loading....:banghead:
Not necessarily. Again depends on the pricing model. Theoretically you are right though, the older vehicles will be charged higher loadings. But depends on how the insurers put the loadings on the age band and the weighting of the age component on the total loading to be added onto the premium.

As I said, every insurer will price the premium differently. Perhaps there is a fixed loading to be charged on each age range. Just need to do your due diligence to shop around.

For example, cars of age below 10 years will have no loading, cars of age between 10-15 years will have 5% loading, cars of age 15-20 years will have 8% loading, etc.
 

vr2turbo

Beyond 20,000 RPM!
Helmet Clan
Moderator
May 11, 2010
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Petaling Jaya
Not necessarily. Again depends on the pricing model. Theoretically you are right though, the older vehicles will be charged higher loadings. But depends on how the insurers put the loadings on the age band and the weighting of the age component on the total loading to be added onto the premium.

As I said, every insurer will price the premium differently. Perhaps there is a fixed loading to be charged on each age range. Just need to do your due diligence to shop around.

For example, cars of age below 10 years will have no loading, cars of age between 10-15 years will have 5% loading, cars of age 15-20 years will have 8% loading, etc.
Not 5 and 8% brother. Mine already had them earlier, but then through friend manage to get them to take off, but friend have left and now with open tariff, my VR kena 20%....:banghead:
 

Nicholasng925

Known Member
Jul 30, 2014
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Kuala Lumpur
Not 5 and 8% brother. Mine already had them earlier, but then through friend manage to get them to take off, but friend have left and now with open tariff, my VR kena 20%....:banghead:
Just an example bro. I’m not sure what’s the exact loading rates but you get the idea. Probably it’s worth shopping around, hopefully to get a lower loading then. If no insurer wants to bear your vehicle’s risk due to its old age, last resort will then be MMIP (min loading rate for MMIP will be 50%).
 
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vr2turbo

Beyond 20,000 RPM!
Helmet Clan
Moderator
May 11, 2010
29,998
8,385
1,713
Petaling Jaya
Just an example bro. I’m not sure what’s the exact loading rates but you get the idea. Probably it’s worth shopping around, hopefully to get a lower loading then. If no insurer wants to bear your vehicle’s risk due to its old age, last resort will then be MMIP (min loading rate for MMIP will be 50%).
Oh! ok, I have been through it, from 10%, 15% now 20%. The main problem actually is most don't want them under comprehensive 1st party insurance. They ask you to take 3rd. party with PA or some other crap that amounts back to 1st party price......lol:biggrin:
 

Nicholasng925

Known Member
Jul 30, 2014
51
12
508
31
Kuala Lumpur
Oh! ok, I have been through it, from 10%, 15% now 20%. The main problem actually is most don't want them under comprehensive 1st party insurance. They ask you to take 3rd. party with PA or some other crap that amounts back to 1st party price......lol:biggrin:
If you take comprehensive 1st party insurance, the price will definitely be higher than 3rd party policy with PA and other riders. :rofl: Up to this point, it's still unclear how most general insurance companies will price their motor premiums, so I guess just have to wait and see.

I'm optimistic that some companies will be able to offer better packages for higher risk profile cars (such as ours - highly modified, old high performance vehicles) than others. Just need to shop around. In the near future, I foresee comparison platforms (such as Ringgitplus and iMoney for personal finance) to emerge as well for insurance products. :biggrin:
 

lsm1991

1,000 RPM
Senior Member
Sep 30, 2011
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Oh! ok, I have been through it, from 10%, 15% now 20%. The main problem actually is most don't want them under comprehensive 1st party insurance. They ask you to take 3rd. party with PA or some other crap that amounts back to 1st party price......lol:biggrin:
Oh so ur vr is stuck with 3rd party now?
 

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