Buying a New Car? Your Age and Gender will Affect Car Insurance Price

December 22, 2017 | Author: | Posted in Insurance

Buying a new car is one of the most exciting things in one’s life. However, there is one more important decision that you’ll need to make after buying a new car and that is, which motor insurance should you get? You’ll need to be covered if your newly-purchased vehicle meets with an accident or is stolen. In Malaysia, it is necessary to take car insurance if you have bought a new vehicle.

Many Malaysians still wonder what the exact formula to calculate insurance premiums is. Insurance premium calculation changed a lot when phased liberalisation of motor insurance market made headlines at the top insurance news portals in Malaysia in July 2017. With the introduction of detariffication of motor insurance in Malaysia, your age and gender along with your driving history can affect your car insurance premium. Have a look at how age, gender and driver’s risk profile affects premiums during insurance risk assessment process:

  • Your Gender

Your gender can be a significant factor in the difference in insurance premiums. Women may pay less for insurance than men do. It is because of the risk associated with female and male drivers in their youth. Motor insurers find that men in the age group of 16-24 years are much more likely to have accidents, cause major fatalities in accidents and break traffic rules. As driver’s age reaches 25 years, insurers believe that he or she is more mature and safe on roads. However, statistically men are considered to be more aggressive and have unsafe driving habits, so they still pay a higher premium price than women.

  • Your Age

Age is one of the important factors that insurance companies look at when determining your motor insurance premiums. As a car insurance buyer, you should know the “higher risk” age brackets and which age groups pay the most for auto insurance? Teen and young drivers from 16-19 years of age, both male and female, are most likely to file a claim. Hence, they pay the highest premium rates. Drivers from 20-24 years get in less high speed accidents than teens. Their age and experience in driving on the road gives them a huge advantage. Studies have found that once you reach the age of 25 years or more, your driving skills improve and you make lesser claims. As a result, the premium rates go on decreasing as you age and it may increase after mid-fifties.

  • Your driving record

Having a clean driving record is the best way to get cheap car insurance rates. If you have a great driving history, you’ll pay a lower premium. Insurers look at your driving history to determine if you are at risk for them if they provide you insurance. If you have violated traffic rules in the past, have met with an accident or made claims previously, then be ready to pay higher premium rate.

It doesn’t matter if you are 16 or 56, male or female; there are ways to save on your auto insurance during your insurance risk assessment. Insurance rate calculation changed a lot after the insurance news related to phased liberalization hit the Malaysian market, but you can still save a lot on you premiums. Ask for online quotes from multiple insurers and then decide which insurance can provide you best insurance at affordable price.

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About Author
Jenny is a senior advisor at a leading insurance company in Malaysia. She is also a freelance commercial writer and has interests in topics such as insurance, financial planning and wealth management.


PIAM Insurance makes the renewal of your motor & car insurance more reliable and offer the best insurance policy online in Malaysia.

This author has published 14 articles so far.

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