Factors To Consider During Your Car Insurance Renewal

If you have a car, you would have to undergo a car insurance renewal process every year. While it is fairly straightforward, there are certain aspects you could check in on from time to time in order to save money and get the best insurance value for your car.

Save money doing it yourself or have an agent do it for you

If you engage an insurance agent, all you’ll have to do is provide him with the relevant documentation and pay accordingly. He’ll do all the running around for you, so you can spend your precious time doing things that you enjoy.

The cost of your premium is determined by the current value of your car, its condition, and the type of coverage you decide to get. Typically, your agent would also renew your road tax and deliver it to you.

But know that nothing is free. It may cost a little more because the agent would receive a cut for his services.

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Some things to consider during your car insurance renewal:

Insure your car at the right value

You should always insure your car at its current market value. If you under-insure it, you’re liable for the difference that may arise when an accident occurs. You would only be compensated up to the sum in which you insured your car for, and may have to cough up the rest.

However, if you over-insure your car at an amount that is higher than its current value, you will still only receive compensation for its actual market value; not the amount you insured it for. Why? As a policy owner, you’re not allowed to profit from an insurance claim. Which is why it’s best for you to familiarise yourself with the market price of your car.

How to determine your car’s market value

You should make an effort to know the current market value of your car prior to your car insurance renewal each year. That amount won’t be the same because the value of your car depreciates each year.

Bear in mind there are no fixed rates when it comes to car market values. Each insurance provider has different valuations, based on their own method of calculations.

Itching to find out? Ask AIG about the market value of your car at https://www.aig.my/personal/auto-insurance now.