The phased liberalisation of motor and fire tariffs announced by Bank Negara Malaysia (BNM) saw premium rates for motor comprehensive being liberalised beginning from July 1 in phase two of the programme. While full detariffication will only come about in 2019, consumers will now have to start paying for their vehicle insurance premiums no longer on a fixed rate basis, but on a risk-based assessment system.
What this means is that many factors will come into play in how insurers and Takaful operators determine premiums – for one, pricing is set to differ between insurers. This means that theoretically, no two insurers will have identical pricing for a motor comprehensive policy.
This means that consumers now have to shop around for competitive pricing rates and coverage that best meets their insurance needs, which also changes the dynamic of how pricing of vehicles are viewed.
Previously, with tariffs in place, the insurance was determined by fixed price lists, and so an on-the-road price of a vehicle was easily quotable with insurance in place, a method practiced by many automakers and distributors.
Now, this is set to change, what with insurance losing its standardisation as a result of the removal of tariffs. Buyers will need to watch out for different ways of car prices being advertised – some companies even list a nett selling price for their offerings. What most can expect to see are car prices being quoted on – or revised to – an ‘on-the-road, without insurance’ basis, to make it easier for consumers to work their purchase from.
On a site like CarBase.my, the country’s #1 buyer’s guide to cars on sale in Malaysia, you’ll have noticed that all new vehicle pricing on the site is listed without insurance, which makes it a much simpler process when it comes to calculating everything.
If you’ve started paying for a motor comprehensive insurance policy from July 1, has there been an increase or decrease in your premium, and was finding the right policy a fuss-free affair? Share your views with us in the comments section.
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Better and cheaper than current? That why used term “competitive” pricing! GST implementation shows everything is increasing. No hope for what they promise.
Motorcyclists affected?
Essentially asking everyone to go on ‘price war’. Consumer want it cheap. Employer makes thinner margin. Employees (most of the consumers) want pay raise. What a world… LOL
Really? Cuz car prices went down when GST came in.
Ha ha ha. Another fake news posting. Tak habis habis bootlicking the gomen.
FYI, all car prices went up with GST. Stop spreading fake news
I cannot stop laughing! Oh my! car prices went down.
This is the same guy who says Malaysia has the cheapest car prices in the world and cheapest petrol prices in the world.
this is something we call “bunga”. first force car makers to reduce the few thousands or hundreds to fool people like you the “immediate effect” of GST.
months later, everything has price increased, rakyat’s money been sucked off to save goverment, ringgit value drops non-stop, and car price resumes high. this is what we call Domino’s effect. your abang ayam give you one sugar and immediately you happy like an idiot.
The latest principle in determining car’s insurance is a good move in order to shape motorists behavior more towards Western and developed economies.
Having said that, why on earth that we never followed the similar principle of most advance countries’ car pricing?
Let revisit one of Malaysia’s popular rconditioned car, Toyota Alphard/Vellfire cheapest 2.5X 8 seater version merely ¥2,960,909 =RM113,054.73 without consumption tax. This car even cheaper than an Altis 1.8 in Malaysia. If we “follow” same principle and consequently we’ll arrived at much cheaper car price and hence cheaper insurance premium.
If we got cheaper price for our laptop, electrical appliances WHY SHOULD BE PAY EXCESSIVELY FOR CAR PRICE?
FOR PAST 30YRS…WE PAY EXCESSIVELY FOR CAR PRICE.
To encourage pipu use public transports instead of polluting environs?
Public transport still cost more than other country, sometimes, driving a car is cheaper than taking public transport. Again, if public transport is always on time with broader coverage, I don’t mind switching to them even it cost more. But, Malaysia Boleh Screwup saja!
malaysia tropical and humid weather, incompetent road map with expensive fair, what swear-up is bad puncture time.
So far, only the buses r not on time and thats cuz too many cars choking the roads. Ever met frequent train breakdowns like south overlordland?
Have you ever taken the bus? Waited for an hour and see 3 buses come one after the other on the same route? Wait at the depot/LRT station and see all the drivers go for teh tarik break together?
There are definitely too many cars on the road, but it’s because people are willing to go through the financial burden of ownership because the buses are simply not reliable.
Yes I seen this happen. London red double deck bus… oh wai
Called a few insurance companies this morning to obtain quotes eg. AXA, Kurnia, Allianz and current insurer, Etiqa.
AXA, Kurnia and Allianz offered almost the same premium rates but with benefits thrown in instead of cash discounts. The tedious part is to provide the same car info and to answer the list of standard questions before they can provide a quote eg. ever been charged in court before, any claims in the last 3 years, any health problems, driving experience and so on.
In the end, I renewed again with Etiqa with a RM11.45 discount on top of the normal phone-in discount after answering the same set of questions.
I believe my phone charges, time and energy spend is > RM11.45 in sourcing around for the lowest premium.
Somebody should develop an app/table to list the various levels of sum insured, premiums and benefits that is offered so that drivers can make an informed and wise decision.
And we thought liberalization is good news for decent Malaysian drivers like us!
When world becomes competitive, it doesnt hand u in a silver platter.
I believe the insurance companies themselves are not yet ready for this, from a self answered Web based questionnaire to finally obtain a quotation.
Better stick with your current insurance company this year. Call your amoi or awek agent and ask for special price while waiting for their company heads to sort out their systems.
Watch out guys, we’re going to end up paying a bit more for auto insurance than women.
Reminds me competitive fuel prices.
it should help stop the nutters charging through the traffic, tailgating, undertaking at speed, dark windows and souped up engines
Folks that want to do that can pay extra for their insurance…….dont make me pay for their foolishness!
I’m happy the changes come. Long overdue!
I would suggest force implement all car need to be installed cam recorder and whenever caught any stupid bugger road abuser can get discount on insurance once certified by JPJ or PDRM.Too many people drive like their BABA PUNYA JALAN thesedays regardless motors or cars.
NCD is still around or not?