In the past few decades, buying or renewing motor insurance policy has been a pretty much a straightforward process. Insurance premium was determined by the car make, car age & engine capacity of your vehicle.
However, since July 2017, the motor insurance market has been de-tariffied in Malaysia, which will change how much drivers will be paying for motor insurance.
Let’s find out more on what’s different now.
Instead of the conventional way of determining insurance premium, additional factors will be taken into account.
Factors like gender, age, car usage, occupation, and car make will (or may not) be the factors taken into account. These factors may vary between insurers. If you think these factors and classification is another crude and arbitrary representation of your actual driving risk, we hear you. Because it probably is.
You may fit the stereotypical profile of a risky driver, but in actual fact, you are in every sense, a safe and astute driver. Contesting otherwise to insurance provider will be tad difficult.
The concept behind it is exactly how it sounds like. Only pay as you drive, based on your actual risk, and coverage needs. UBI helps great drivers get great savings from annual motor insurance renewal.
UBI is a win-win for insurers and users alike. By flagging yourself as a low risk driver, insurers will be happy to have you as a customer, and will offer competitive premium quotes pegged to your actual risk.
How are Usage Based Motor Insurance assessed?
There are several enablers that lets you tap into the UBI model.
- Telematics Solution – KATSANA Track
A device connected to GPS satellite is installed into vehicle enables tracking of on-road behaviors.
- Free Mobile App – DriveMark
App that tracks, and record driving behavior are available in the app store for downloads.
Ingenious solutions like KATSANA Track and DriveMark, records dynamic profile of your entire driving history. All of which are taken into account in determining an overall score of your actual profile risk. This enables partner insurers to quote premiums to match your recorded risks.
Get DriveMark, it’s free
Onboard telematics hardware and driving tracker apps like DriveMark stores your data securely in the cloud. You will be able to decide whether your driving data is worth sharing to insurers to pursue for lower premium quotes. All of this can be done directly through the DriveMark app.
If you are still unsure whether UBI is for you, definitely don’t pass on downloading DriveMark. We recommend to give it a go, find out how well you are driving, and have fun with it. There are plenty of rewards, challenges and social features available in the app.
Implementation of UBI is already gaining traction in Malaysia, and will only be building momentum onwards. Tap into UBI early and start collecting driving data to enjoy of upto 20% discounts when you renew in 2018.