All cars need motor insurance, and it doesn’t matter how much or how little we drive it, the insurance premium costs the same. This isn’t a problem if the car is your daily driver, but what about the less frequently used family car or weekend car?
After all, driving less reduces the likelihood of accidents as your car isn’t on the road so much, lowering the probability of an accident. Reduced usage of your car also correlates with less tailpipe emissions, which is good for the environment. Wouldn’t it be great then if you can pay lower premiums for the lower mileage clocked? Sounds fair, right?
With the MSIG EZ-Mile motor insurance add-on, you can. In support of those who drive less, MSIG has introduced EZ-Mile, an add-on for selected Comprehensive Private Car policies that lets you pay-as-you-drive. If you commit to drive less than a planned mileage per year, you can pay a lower premium for the same coverage.
There are no additional fees for EZ-Mile and you can choose from three mileage plans – up to 5,000 km a year, up to 10,000 km a year or up to 15,000 km a year.
Using the example of a 2012 Japanese-brand compact sedan, with a sum insured of RM40,000 and a NCD of 55% in KL, the regular annual premium would be RM888. With the EZ-Mile 5,000 km plan, one needs to pay RM658, which is RM230 less. The 10,000 km plan is RM735 (RM153 less) while the 15,000 km plan is RM773 (RM115 less).
Choosing the right plan to suit your usage is important, but even when mileage is unexpectedly high before the end of policy period, you can top up 3,000 km of cover as many times as you need for a percentage of your original insurance premium (RM77 for one top-up in the example above).
Staying with that example, if you factor in the cost of the top-up, EZ-Mile will still save you money over the standard premium. By the way, if you exceed the mileage cap without topping up, your comprehensive cover will be reduced to Third Party, Fire and Conditional Theft cover.
To monitor your car’s mileage, the MSIG EZ-Mile add-on comes with a complimentary MSIG microtag, a wireless, Bluetooth-enabled GPS device that is easy to install. It pairs with your smartphone via the MSIG EZ-Mile app.
Think of the EZ-Mile app as a friend that has your safety as its priority – besides alerting you when you’re approaching the mileage that you have chosen, the app also has automatic accident alert and emergency response and a one-button call for 24-hour breakdown or emergency roadside assistance. For the assistance features to work, you’ll need to make sure that the microtag is connected to the app when you’re driving.
This ‘friend’ even beeps a warning when you’re texting while driving above 20 km/h, or even when you’re exceeding the speed limit! The app is also a convenient medium for you to submit pictures of your odometer, which you must do quarterly to sync the mileage shown on the odometer with the figure recorded by the MSIG microtag.
The MSIG EZ-Mile add-on sounds like a no-brainer for a car that doesn’t see high mileage, or a second/third car. You get the same comprehensive cover from MSIG and pay a lower premium that is commensurate with the low mileage clocked. It saves you money and comes with the bonus of a convenient app and microtag. And if you end up driving more than planned, there’s always the 3,000 km top-up, so the plans are essentially flexible.
Sounds compelling? Click here for more info on the MSIG EZ-Mile Motor add-on, the MSIG microtag and the MSIG EZ-Mile app.
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