What is the impacts of Motor Detariffication? Buying insurance is no longer a simple process.
Upon a closer look at the 5 insurance companies that sell motor insurance online, we noticed some interesting changes. Information that was not asked for previously is now required in order to purchase insurance online.
Etiqa for example, requires information such as policyholder’s gender, type of driving license, occupation, location and where you park your car during the night.
This additional information helps insurance companies set their insurance price based on the policyholder’s risk factors. This is called “Risk Based Pricing”. Where premium is determined by the likelihood of an accident or theft occurring.
It is all about statistics. For example, a new driver with a Probational Driving License (PDL) has a higher chance of getting into an accident than an experienced driver with a regular driver’s license. Not everyone is the same, but over a large group of people (statistic), young drivers are perceived to be riskier.
Another interesting finding is when we tried to purchase a policy online as a “young driver with several traffic violations who works a night job”, the system declined our application on the spot. We do not know the reason behind it, but for the time being, the traditional way of buying insurance through an insurance agent may be a safer solution.
Recommended articles:
“Advantages and Disadvantages of Buying Motor Insurance Online in Malaysia”
View Comments
Saya telah cuba bertanya berkenaan dengan Premium untuk kereta saya, tetapi pilihan bagi YEAR OF MAKE hanya daripada tahun 2007. Kereta saya 1997. Jadi tak dapat SUBMIT pertanyaan melalui Internet.
Kereta saya PROT0N SAGA Year o fMake 1997.