{"id":18193,"date":"2023-08-07T23:49:00","date_gmt":"2023-08-07T15:49:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/calculate-car-insurance-premium-malaysia.html"},"modified":"2026-03-27T18:24:21","modified_gmt":"2026-03-27T10:24:21","slug":"calculate-car-insurance-premium-malaysia","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/insurance\/calculate-car-insurance-premium-malaysia.html","title":{"rendered":"How To Calculate Car Insurance Price In Malaysia"},"content":{"rendered":"\n

While numerous car insurance premium calculators are available online, many Malaysians still need help with how to calculate their car insurance premiums because of their complexity. But fret not! This article will help you understand the factors that affect your car insurance premium <\/strong>and how to calculate car insurance premiums in Malaysia.<\/strong><\/p>\n\n


What factors affect your car insurance premium?<\/span><\/span><\/strong><\/h2>\n

Before you buy or renew your car insurance, you will need to know a few things first:
<\/span><\/p>\n

1. Car Market Value<\/span><\/strong><\/h3>\n

Your car’s market value <\/span><\/a>depreciates annually, so you need to get an estimate of its latest market value to insure it appropriately. You can achieve this by either consulting the nearest branch of your car’s brand provider, visiting an independent car workshop, or conducting the process online<\/span><\/a>.<\/p>\n

2. No-Claim Discount (NCD) <\/span><\/strong><\/h3>\n

The NCD system set by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff<\/span><\/a> allows car owners to earn discounts over time if they do not make any claims against their insurance companies each year. <\/p>\n

Refer to the table below for the NCD you are entitled to in different categories of the period:<\/p>\n\n\n\n\n\n\n\n\n
\n

Coverage period (years)<\/span><\/strong><\/p>\n<\/td>\n

\n

Discount rate<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

1st<\/span><\/p>\n<\/td>\n

\n

0%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

2nd<\/span><\/p>\n<\/td>\n

\n

25%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

3rd<\/span><\/p>\n<\/td>\n

\n

30%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

4th<\/span><\/p>\n<\/td>\n

\n

38.33%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

5th<\/span><\/p>\n<\/td>\n

\n

45%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Table 1: NCD rates set by Persatuan Insurans Am Malaysia (PIAM)<\/em><\/p>\n

3. Car\u2019s year of manufacture <\/span><\/strong><\/h3>\n

Another factor that affects your car insurance premium is the year of manufacture of your car. Newer cars typically have higher insurance premiums than older cars because they are more expensive to repair or replace after an accident. <\/span><\/p>\n

4. Type of Car Insurance<\/span><\/strong><\/h3>\n

The cost of car insurance premiums highly depends on the type of insurance you choose for your car.  <\/p>\n

Generally, there are three types of car insurance in the market:<\/p>\n