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Car Purchase / Car Insurance: Obtaining early No Claims Bonus

Car Purchase / Car Insurance: Obtaining early No Claims Bonus

Old Aug 25th 2011, 9:14 am
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Default Car Purchase / Car Insurance: Obtaining early No Claims Bonus

As I'm just going through the process of ordering a car here (though which one is proving difficult to decide) it's worth me pointing out that new cars here will pretty much always be quoted with a price including insurance by a dealer, whether you buy a CKD (completely knocked down) under the MM2H tax free incentive or not. If you buy under the MM2H scheme it is worth bearing in mind that your insurance must be based on the retail price of the car without the tax taken off under the incentive. The current retail purchase price of a Honda CRV for instance is approximately RM 145K. This is the figure that the vehicle will be insured for and not the RM 105K purchase price on the MM2H scheme. As a rough guide I've quoted below the insurance prices (without any no claims bonus) provided by Honda for several vehicles spanning a range of engine sizes and value (the figure in brackets after each vehicle is the road tax cost per year):

City S: RM 2,393 (90)
Civic 1.8 S: RM 3,147 (279)
Accord 2.0 VTi: 3,849 (378)
Accord 2.4 VTi-L: RM 4,656 (734)
CRV: RM 4,031 (438)

The engine in a City is a 1,500 cc and, as you can see, in keeping with many other countries, the cost of both insurance and road tax rises dramatically as the power, engine size and carbon foot-print of the vehicle goes up. The road tax variance between the 1.5L and 2.4L is very marked indeed and it is good to see the perhaps more rigorous approach taken to encouraging 'going green' here compared to the somewhat minimal cost differences in some countries. Anyway, before I get too much 'off topic', the primary purpose of this post is to flag up an insurance issue.

You can take your insurance through the dealer or even look to provide your own (I am likely to go with Kurnia) and the only way that you can reduce the cost from the outset as an overseas buyer (MM2H or otherwise), over and above choosing the less powerful and expensive cars (and in Penang, with tight parking in places and some heavy traffic in Georgetown at times, I'm starting to favour the smaller is better approach), is to provide proof of a previously accrued 'No Claims Bonus' (NCB) with your insurers in your home country. Whether and to what extent this will be accepted will depend on both your choice of insurer here in Malaysia (Penang in my case) and your home country. I came from the UK originally and both Kurnia and Toyota are happy to accept my proof of NCB. You will however need to provide an original letter from your insurance company and this is one of the things that may be good to add to your 'To Do' list before you come to Malaysia on a more permanent basis. This will save the hassle and cost of getting it posted here, which some companies may be reluctant to do.

I am grateful to Toyota Malaysia for providing me with the details that they require to be included in any letter for the insurers they use to consider applying the NCB, detail which was also accepted by Kurnia and would doubtless mirror the requirement of other providers:

Your name
Your address (in your home country)
Policy number
Period of coverage
Type of coverage (e.g. Fully Comprehensive)
Vehicle Registration (where relevant)
Final percentage of No Claims Bonus earned and applied to your policy
Total Years of No Claims

The detail companies can provide you with will vary but clearly the closer you can get to providing all of the above, the more success you are likely to have in reducing you premium costs here. I merely provided all of the above detail to my previous insurers who covered all the points.

This is certainly one of the things worth doing as, in my case, I qualify for 55% NCB here, which reduces the cost of insurance on even a Honda City or Toyota Vios considerably, more so if opting for something like a 2.4 Litre!!!

Last edited by Atilla; Aug 25th 2011 at 9:32 am.
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Old Aug 25th 2011, 9:19 am
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Default Re: Car Purchase / Car Insurance: Obtaining early No Claims Bonus

Great info provided here! I also provided my no claims proof and received 800rm off the total, reducing the premium to 1000rm fo the year. Insurer is MSIG. My road tax is only 90rm per year for an 07 Toyota Avanza
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Old Aug 25th 2011, 1:59 pm
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Default Re: Car Purchase / Car Insurance: Obtaining early No Claims Bonus

Ya, good info Atilla. Well researched. If you're doing a fair amount of driving thru Georgetown, agree that small car is advantageous. I went for Suzuki Swift non Mm2h (mr bakedbean got the mm2h discount with his Honda Accord (much bigger discount than on the Suzuki). I'm really happy with the car tho not the dealer.

Not sure about prices and discounts, but have found MSIG in Georgetown very efficient (use for Honda insurance, home insurance and trav insurance).

A bit off Kurnia as they mucked us about with med insurance, but if you've got a recommendation, and all works out, let everyone know on here
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Old Aug 25th 2011, 3:25 pm
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Default Re: Car Purchase / Car Insurance: Obtaining early No Claims Bonus

Yep I can't decide between Swift/Vios/City size, Altis/civic or CRV/Camry Accord.

Problem I have with the last trio is, despite the fact that I like them and at TIMES it's nice to have the size, comfort and power it doesn't really fit in with the use it will get here (e.g. parked at the apartment 95% of the time) and thus don't seem to warrant the insurance, road tax and fuel costs. And that's without taking into account the 'attention' that such vehicles draw from all manner of unwanted sources And of course when you DON'T need that size (e.g. 90% of time in Pg) it's a real PITA, just as it is in London, Paris etc etc.

Altis/Civic is quite desirable as a next option and I may end up with a Civic. Part of me still thinks, but why?? Spec maybe. But top spec City/Vios and Swift are also very nice. At the end of the day it may come down to who can deliver quickest. I quite like the Vios Sportivo. Almost the entire family of a very very good friend drive Vios'. Very popular.

Kurnia were OK for me with medical, albeit I will look around more next year when I get chance, just got bored this year, and too busy. AIA seem popular. I like the look of April Mobilite to but still figure it's a bit OTT. That said, the Malaysia policies I checked don't cover outside of Malaysia, some don't provide outpatient (although I didn't bother with it) and none did dental or repat. Like I say more for next year.

Back OT re the cars, I'll look at MSIG too, thanks.
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