Buying motor Insurance direct or through Agent

It is now easier to purchase your car insurance compared to many years ago. In the past, you will have to purchase your car insurance through agent by walking into their office. Nowadays, you renew your car insurance online without the need to leave your home or office.

Many insurance agents (like us) offer online insurance renewal services, whereby you submit your detail online and we assist in the issuance of your car cover note. There are also some insurance companies offering car renewal service directly, whereby end user renewed their car insurance directly with insurance companies and not online through agent.

The incentive for renewing your car insurance online directly with insurance companies is that you will get 10% discount, while as you don’t get this discount if renewed online through agent. The 10% discount is actual the 10% agent commission.

So, now the question. Is buying insurance online cheaper then buying through an agent?

The obvious answer seem to be a yes. It is cheaper to buy direct than through an agent, because of the 10% discount.

The not-so-obvious answer could be a NO. It is more expensive to buy direct than through your agent. Let me explain why.

When you buy online directly through an insurance company, you are buying through a computer system, whereby it will generate the quotation and you pay the premium shown, after then it issued the cover note. As you are dealing with a computer system, it is rigid and there is no room for negotiation. You may think you save with the 10% discount.

In actual fact, when we generate your car insurance quotation, there are element such as vehicle age loading, driver age loading and excess which will actually impact your final premium. As an agent, we can be in a position to waive or reduce some of these loading, where we think fit.

A 10 years old vehicle may be subjected to 15% or 25% loading, depending on insurance company. Thus, if you are buying directly through an insurance company, which load you 25% Vehicle Age loading, with 1% excess. Assuming you insured for RM30,000. The 1% excess, upon claim would hurt you RM300.00. With a 10% online discount, you are actually paying 15% more compared to renewing your car insurance with an agent online, like us, who can waive off the 25% loading.

Although, we do not offer 10% discount, but we can assist you to reduce or waived off the loading and excess, which ultimately, gives you more saving compare to buying direct.

Furthermore, by renewing your car insurance through us and not through a computer, you know you can always seek help from us than calling the Customer service line.

Ultimately, the choice is yours, but just remember that it is not always cheaper buying directly. Not even with the 10% discount.

Get your car insurance quotation from us and decide if you should renew through us.