It’s the new year, which means your vehicle insurance has probably already expired. Now is the time for car insurance renewal. 

For first-time vehicle owners, this might also be your first time renewing your vehicle insurance. Since vehicle insurance is compulsory by law in Malaysia under the Road Transport Act 1987, vehicle insurance renewal is something that you’d have to do every year, as vehicle insurance in Malaysia has a standard coverage that lasts for one year.

Vehicle insurance renewal is no longer a hassle now, as you can compare and renew vehicle insurance instantly and conveniently. Instead of visiting a few insurers to compare the plans one by one and going to JPJ to renew your road tax, everything can be done online now, including on our platform.

Have your personal and vehicle information ready before your vehicle insurance renewal

Before you start looking for the best vehicle insurance plans and renewing your vehicle insurance, some information will be required, specifically your personal and vehicle information. So make sure all of the information required is ready. Similar to when you were buying vehicle insurance for the first time, some of the info needed may include:

• Your full name
• IC number
• Contact number
• Address/location
• Vehicle number
• Vehicle model

High-performance engines: Higher premium rates

Keep in mind that you may get a higher premium rate if you own a sports car or a vehicle with an intermediate to high-performing rear engine model, compared to average cars. However, this doesn’t mean you can’t lower your premium rate.

For example, if your driving record is good and only selects the coverage and benefits that you truly need (minus the unnecessary add-ons), you could get a lower premium rate.

Understanding vehicle insurance detariffication

First, as a newbie, you must understand the Malaysian detariffication of vehicle insurance (or the removal of tariff). Before 2017, Bank Negara Malaysia was the one that controls the calculation method for vehicle insurance premium.

Once the tariff was removed, insurance companies can now implement their ways for premium calculation. Risk-based pricing is often the method used to determine your premium rate.

Risk-based pricing: The new method of premium calculation 

This means that aside from relying solely on your vehicle information such as engine capacity and market value for premium calculation, your risk factors will also be considered, such as your driving record, gender, and age.

This detariffication isn’t necessarily a bad thing, as you can expect better premium rates, various product selections, and improved customer service, as insurance companies are now competing with one another to provide the best plans for consumers.

How you can take advantage of the risk-based pricing method

Your premium rate will be higher the more risk you carry based on this method, and vice versa. You can try to lower your premium rate by knowing what insurers consider as risk factors, like:

How you use your vehicle

• If you’re commuting to work daily, chances are your premium rate will be higher, especially the further your office is located and where you drive (like the highway), compared to a housewife who only uses her car to run errands.

Type of your vehicle

• As mentioned previously, you may get a higher premium rate if you own a sports car or a vehicle with an intermediate to high-performing rear engine model, compared to average vehicle. 

Your claims history

• Claims made previously indicate that you’re a high-risk driver. Therefore your premium rate will be higher.

Your level of education or occupation

• As unfair and discriminatory as it is, the better your level of education or occupation, the lower the risk you carry, as perceived by insurers.

Your gender

• If you are female, you may be in luck as your premium rate could be lower than most male drivers because female drivers are safer and drive more carefully.
• According to The Global Status Report on Road Safety published by the World Health Organisation (WHO) and the World Bank in December 2018, Malaysia had 7,152 deaths in 2016; 87% were males and 13% females. 

Your age

• Young and less experienced drivers are perceived as high-risk drivers, so the premium rate will be higher. 

Your location

• City-dwellers will often get a higher premium rate compared to those living in rural areas because most cities have a higher rate of vandalism, theft, and road accidents.

Now that you know what risk factors are taken into consideration by insurance companies when calculating premium rates, it’ll be easier for you to figure out a way to get a cheaper premium rate.

There are at least two things that you can do to lower the premium rate, for example: 

Highlight your good driving record and zero claims history

• Both will be in your favour.

Increase the security of your car

• Ensure the auto-locks and alarms are working all the time. Install a few things if you can afford it, like a dash-cam. Reduce the risk of vehicle theft or damage by parking at a safe or well-guarded location. 

Avoid unnecessary add-ons

• The more add-ons you opt-in to your plan, the more expensive your premium will be. Agents may try to sweet-talk you into add-ons that you might not even need. So think carefully about what you need as a driver. 

Once you fully understand how motor insurance detariffication plays a role in determining your premium rate and how to lower it, you can start setting up your profile on our platform for motor insurance renewal. Receive quotes, compare, and make add-ons instantly from the comfort of your home!

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.

Most vehicle owners would know that car insurance is compulsory in Malaysia. But what about the coverages? What does car insurance cover and doesn’t cover? Find out more.

Just like any other product, car insurance (also motor insurance) plans in Malaysia aren’t all created equal. Though all car insurance plans available aim to provide financial protection for the policyholder (against liability, physical injury, or damage due to road accident), the terms and conditions and the add-ons may vary between insurance providers.

There are three kinds of car insurance policies in Malaysia: comprehensive coverage; third-party, fire and theft coverage; and third-party coverage. Each of these policies provides different kinds of coverage. Let’s take a closer look at every one of them:

Comprehensive coverage

• As its name suggests, the comprehensive coverage covers mainly everything, not only the third party but also your vehicle. Whatever vehicle-related loss or damages that you are facing, you will be covered. However, this will also depend on your vehicle’s age, which means not every vehicle is eligible to be provided with this coverage.

Third-party, fire, and theft coverage

• For the third-party fire and theft coverage, you will be covered for any claims made by a third party against you due to a road accident that results in vehicle damage, loss of property, bodily injuries, and death. This coverage plan also covers you for damages caused by fire or even grand theft auto (NOT the video game).

Third-party coverage

• Meanwhile, the third-party coverage provides the most minimal and basic coverage, so it is the cheapest coverage among the three. As the name suggests, this coverage will only protect the third party involved in the road accident. 
• Any damages done to your car will not be claimable. However, you are allowed to claim for whatever compensation is required by the third party.

Now that you know the basics of what the standard car insurance in Malaysia covers, you may be wondering what the standard car insurance in Malaysia does not cover.

What the average car insurance in Malaysia does not cover

It is important to note that while most car insurance offers coverage for third-party injuries or death and any damages done to your vehicle or the third party, neither one provides coverage if you are injured or passed away due to the accident.

For this, you will have to get personal accident insurance, which is separated from car insurance.

So when you’re comparing several car insurance policies, look out for the ‘Exclusions’ stated in each policy, as they may also vary between policies. Exclusions simply mean the losses that are not covered by the policy.

Some examples of exclusions include the following:

• Your own bodily injury or death caused by a road accident
• Liability against claims by passengers in your car
• Liability, damage, or loss caused by natural disasters, such as landslide, storm, or flood
• Tire damages (exception is given if other parts of your car are damaged as well at the same time)
• Liability, damage, or loss that arises when you’re driving the vehicle for hire or e-hailing
• Liability, damage, or loss caused by racing 

These are only a few examples of exclusions that you can find in various policies. Therefore the list is not exhaustive. You can only view the complete list of exclusions when you’re handed the policy contract (or a sample of the policy contract).

For this, you’d have to get in touch with an insurance provider of your choice.

Add-ons: Get the protection you want and need

Of course, if you are not satisfied enough with what’s being provided by the standard car insurance coverage, you can always opt for the add-ons. However, the more add-ons you get, the more expensive your insurance premium will be.

Your insurance provider will calculate your premium based on factors like:

• Coverage type
• Vehicle type
• Driving record
• Driver’s age and gender
• Where the driver lives

Therefore, the add-ons that you choose depend on the factors mentioned above. Here are a few examples of add-ons, which are basically protection against damages or liability, that are available for policyholders to choose from:

• Vehicle’s windscreen damages
• Vehicle’s audio and accessories damages
• Vehicle damages due to natural disasters (e.g., landslides, storm, or flood)
• Vehicle damages due to a civil commotion, riot, or strike
• Protection against liability claim from your passengers (in case of an accident)

To reiterate, not all plans are created equal. This means the add-ons provided by various insurance companies in Malaysia will also be different. If you’re looking for any specific add-ons, choose an insurance policy that provides the add-ons that you want.

That said, with so many car insurance plans available on the market, it can get overwhelming to compare them manually one by one.

Because comparing insurance plans can be time and energy-consuming, we highly encourage you to use an online insurance comparison platform like FatBerry for convenience.

Compare insurance quotations instantly and buy in three minutes!

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.

carInsurance is one of the essential things in your life that you’ll need. Its biggest benefit is that it could protect you and your loved ones, financially speaking.

It acts as your safety net should something happen to you. If you’re the breadwinner of your household, having insurance is definitely more important than ever.

Why the myths about purchasing car insurance aren’t true

Despite insurance being handy in emergencies, many people avoid being insured due to confusion and several misconceptions surrounding insurance. If you are one of them, we’re debunking some myths for you now.

Thanks to the myths surrounding insurance, many people have missed out on the benefits it offers. Hopefully, we can convince you to change your mind about purchasing car insurance by debunking these myths. Find out the top five myths about purchasing car insurance and why they are not true: 

1. Car insurance is too expensive.

The amount of your insurance premium depends on what kind of car insurance you’re getting, the add-ons you opted for, and things like your age and health condition. For car insurance, insurers will calculate the premium rates based on risk factors such as age, gender (yes, sexism still rules, unfortunately), residence, claim history, and occupation.

If you’re worried about your limited budget and feel like it’s a hassle to look around for the right insurance, you can easily use a comprehensive online marketplace for insurance to seek advice, compare insurance and get free quotes instantly without the trouble of going from place to place. 

2. Young and single people with no dependents don’t need insurance.

Life is unpredictable, and not to sound dramatic, but tragedies like accidental death, disability, or critical illnesses could befall anyone regardless of age. At least with the right car insurance, rest assured that you’ll be protected financially. 

3. There’s no need for insurance when the government has already offered healthcare initiatives and subsidies for Malaysians.

Yes, you’re only required to pay RM1 or RM5 if you go to a government clinic or hospital, but there may be other fees involved depending on your situation and health condition. And yes, there are already a few healthcare initiatives by the government like Peka B40, but not everyone is eligible. It always helps to have an extra cushion.

4. The company’s insurance is sufficient.

Sure, if you plan to work for the same company for the rest of your life. But then again, there’s a possibility of being retrenched. What are you going to do if you lose your job and need proper medical treatment, but it’s expensive, and your life savings are barely enough to cover you and your family?

Without insurance to back you up, you’re literally digging your own grave. Sorry if that sounds morbid, but it’s the truth that everyone should consider taking seriously. Relying solely on your company’s insurance is not sustainable in the long run.

Besides, most companies only provide health/medical coverage. If you commute to your office daily and are often out and about for work, it’s even more critical that you’re backed by car or motorcycle insurance.

5. Your basic car/motorcycle insurance is enough to cover you.

Also known as the Act cover, this is only a base coverage to correspond with the Road Transport Act 1987. It only involves legal liability for death or bodily injury to a third party (excluding passengers).

Motor insurance is compulsory for vehicle owners, be it a car or a motorbike. However, your basic motor insurance is not sufficient to cover you. Hence, it’s better to get additional coverage. There are three types of car/motorcyle insurance to choose from, which are:

i. Comprehensive coverage

The most recommended coverage as it covers pretty much everything, in the event where there’s damage to your vehicle because of accident, loss or damage to your car due to theft or fire, damage to another party’s property, and injury or death to another party.

Also known as the first party policy, this coverage also offers optional benefits (subject to agreement), for example, Personal Accident and Medical Benefits for driver and/or passengers, windscreen breakage cover, or even coverage for damage to your vehicle caused by natural disasters or civil commotions like riots.

ii. Theft and third party fire coverage

Also known as the second party policy, this coverage protects your vehicle from the loss or damage caused by theft or fire, damage to another party’s property, and injury or death to another party.

iii. Third-party coverage

Also known as the third party policy, this coverage only covers damage to another party’s property and injury or death to another party.

Choosing the right insurance is very important, and finding the right type of insurance can be daunting due to so many options.

When in doubt, simply use online insurance aggregator like Fatberry to sort out the best insurance where you can compare and get free quotes instantly–all in less than 3 minutes!

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.

If you are a car owner in Malaysia, then you need the best insurance policy available at a competitive price. Reducing the cost of your car insurance is easy if you know how.

8 Quick Tips to Reduce The Cost of Your Car Insurance

Here are the tips to help you reduce your auto insurance premium:

1. Keep a Clean Driving Record

As a driver in Malaysia, you have to maintain a perfect driving record to get the best rates. Remember that tickets, accidents, and the violation of traffic will affect your car insurance premiums. Therefore, if you drive safely on the roads and follow the rules, and you will be rewarded with cheaper premiums in the future.

2. Maintain a Good Credit Score

Credit insurance score can be used as a factor when setting your premiums. The insurer calculates your credit score from your credit report. Therefore, you have to regularly check your credit record and ensure errors are corrected to maintain an accurate record.

3. Sign Up for a Blackbox

The black box policy in Malaysia allows insurers to install a system that monitors drivers as they drive and reward those who are careful. This reward comes in the form of cutting premiums substantially. These black boxes are known as telematics, and young drivers are advised to embrace them.

4. Go For a Higher Deductible

If you have an accident and need to make a claim, you will have to pay the deductible amount before your insurance policy covers the rest. If you take out a higher deductible, you can reduce your premium as it reduces the insurance provider’s risk. Therefore, opt for a higher deductible if you can. By so doing, you will save a high per cent without sacrificing reliable coverage.

5. Check Out Your Coverage Options

Consider reducing coverage on older cars. Buying coverage may not be cost-effective when your vehicle’s worth much less than the premium. If your vehicle is undergoing repair or has caused an accident, you can choose rental car coverage in Malaysia or use a family member’s car instead.

6. Accept the Mileage Cap

You could cut up to 10 per cent off your premiums by reducing your driving mileage per year. Miles driven per year is considered a cost component in auto insurance. You earn a discount since your car is not likely to be involved in an accident if it’s rarely driven. Ensure you are honest with the mileage to avoid jeopardising your claim.

7. Choose Your Car Carefully

Premiums usually vary with auto models. Some cars are an insurance trap, for example, the older cars that lack safety features, compared to the new models with standard safety features. Sporty motors will also attract a high premium compared to other models or those with a smaller engine, which also has the added advantage of saving money on fuel.

8. Multiple-Policy Holders

If you maintain more than one kind of policy with an insurance company, then you can get significant savings. If you purchase renters, homeowners, or life insurance, you will get a multiple-policy discount, which reduces your premiums on both policies. You may also get a reduction by insuring more than one vehicle with the same insurance company.

Hopefully, these tips are useful to you in choosing your next insurance policy. If you need any assistance in finding the right cover for your vehicle, don’t hesitate to contact us for a competitive quote.

Also, while we’re talking about reducing the costs of our car-related expenses, have you checked out our RM1 Road Tax promotion yet?

In partnership with Visa, you’ll only need to pay RM1 for your road tax when you renew your car insurance and pay with your VISA card. So cheap, right? Don’t miss out on this promo! If your car insurance hasn’t expired yet, don’t worry! Just click CHOPE for your next renewal!

*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.