The Malaysian economy today is looking uncertain. GST has made many products and services more expensive. Furthermore, the price of petrol is now being revised on a weekly basis putting more strain on the consumer. With this current economic situation, Malaysians are more conscious about their spending, as they should be. However, this does not mean sacrificing the important things in life. And one of them being insurance. So perhaps it is a good time to look at ways how you can save on insurance.
7 Ways to Save on Insurance Cost
1. The sooner, the better
We always advise to our readers to get insured as soon as possible especially when it comes to health and life insurance. Purchasing these policies at a young age when your risk at being diagnosed with a disease is lower, means you are entitled to a lower premium. And once you have already bought your insurance, your company can no longer add exclusions to your policy for any illness that you may be diagnosed with later, while being insured by them. Thus, you will always get the best of your insurance without having to pay more.
2. Get your discount
Some companies give discounts if you purchased more than one policy from them. So if you are planning to buy health insurance for you and your wife or parents for instance, you should buy from the same company. When you are searching for the right policy, make sure that you ask the agent if you will be getting a discount for multiple purchases. Buying multiple policies from the same company not only save you money, but it will also help save you the time and trouble of having to pay your premium to more than one company.
3. Only get what you need
Avoid wastages and over-insurance. Only get what caters to your needs. Always do your own research and determine the type and how much coverage you actually need. If you are covered under your company’s employee benefits, find out exactly what is covered to avoid duplicate coverage if you also have a personal health plan. You don’t have to pay more than what you need.
If you are buying motor insurance for your car, take note of the sum insured. Is the sum insured correct or is the amount much higher than the actual value of your car? Over-insurance means higher premium for you. Or worse, trouble when you file a claim. If the sum insured is too high, the insurance company will investigate for fraud.
You can always check your value of the car for FREE on the government website: https://www.mycarinfo.com.my/MarketValue
4. Make comparison
Shop around before deciding on a policy that is right for you. However, be advised that in finding the right policy, cheapest doesn’t necessarily mean best. So start with knowing what you need, then identify the policies from different companies that offer this and compare their prices. This is no doubt the best way for you to save on insurance. With the coming implementation of motor de-tariffication in Malaysia in July 2017, we highly advise our readers to speak to their agents and make comparison in motor premium from various companies as we may start seeing big variance in prices.
5. Take advantage of renewal bonus or no claims rewards
Many insurance companies offer you reward or bonuses when you renew or when you have not made any claim during the previous coverage period. When you compare premium, keep a look out for these benefits. Below some examples.
Life and Medical Insurance
Syarikat Takaful Malaysia’s takaful medical plan, myHealth Protector, offers a 15% cash back if you have not made a claim in the previous year. While Allianz Medical Insurance MediSafe Inifinte offers you a “No Claims Reward” which increases your hospital room & board benefits if you have not made any claims for a certain period of time.
General Motor Insurance
Many are familiar with the Non Claims Discount for motor insurance. This discount is given if no claim has been made for the period of 12 months of the coverage. If you have made a claim, no matter how small, your discount percentage will be reset back to zero. So, you may want to think twice before claiming from your insurance company if you’re involved in a minor car accident that you have caused. Similarly, if you file too many claims, the insurance company will perceive you as a high risk driver and this will greatly affect the insurance price under Motor Detariffication.
Want to learn more about NCD? Watch the video below:
6. Take good care of everything
Avoid claiming from your insurance company unless necessary, such as the example above. Prevent avoidable accidents by carrying out regular car maintenance. Set your house with a fire alarm or distinguisher. The same goes to your health! Stay healthy by eating well, exercise regularly and get enough rest Staying in good shape is definitely a great way for you to get a cheaper life and health insurance.
7. Find yourself an honest and knowledgeable agent
An honest agent sees himself as someone who is here to help you plan your life and finances better. They will help you find the best insurance plan to cater to your needs and situation. A “salesman” type agent may sell you a policy that will earn him the most commission. Therefore it is important that you speak to several agents before making a purchase and find one who has your interest in mind. If you need to find one who you can trust, try iBanding’s Agent Directory. The agent rating and review system will definitely help you find the best one for you!