Insider Scoop: Top 5 Predictions of Malaysian Motor Detariff
In the previous article about what’s happening in July 2017 onward, we have learnt that insurers will have the liberty to curate their own car insurance products with more competitive pricing and packages. They are locking horns! And it’s survival of the fittest. If you have not read it, click here.
In this article, we’ll cover extensively on the possibilities of what kind of compelling offerings insurers may be looking at. Perhaps even insurers will read this to get insights and inspirations to stay competitive.
Prediction 1: Car GPS Tracker
While it may be nothing new to have a GPS tracker in a car, it is a whole different league when you pair this tech with insurers to track your real-time driving behavior.
With precise behavior data, insurers can assess the risk of YOU driving your car. So if you are a law abiding citizen with good driving behavior pattern, you are a low risk driver and you’ll enjoy a lower premium on your car insurance renewal.
The trade-off however is that if you are a risky & reckless driver, regularly blazing down the streets at 150kmph (well above speed limits) your premium will shoot up, probably more than the tariff rates.
To top this, insurers should be able to lower the premiums further as the risk of grand theft auto is significantly reduced. Think about it – How do you steal a car with a hidden GPS tracker in it? With Katsana for example, they have even dare to insure RM10,000 on top of your car insurance, should your car be stolen. In short, they are that certain that your car will not be stolen.
Prediction 2: Authorized driver phone app
In the obvious, the primary purpose of an insurance phone app would probably to serve as an emergency, reporting & advisory touch-point in an accident or breakdown. But it can also be used to ascertain if an authorized driver is driving the car. Coupled with the Car GPS Tracker, insurers can implement a system where you are only insured if your phone is switched on and tracked while driving. This will reduce the risk of fraudulent claims where less experienced drivers could be driving your car and claimed that the insured is driving it, therefore reducing risk & premiums.
Prediction 3: Dashboard camera
Photo credit: http://thegalaxy11.com/file/2015/12/How-to-Install-and-Operate-Dash-Camera-Nicely.jpg
Another widely available tech for your car is a dashboard camera. With insurers, if you have a dashboard camera for them to assess your driving pattern, they may just reduce your premium if you are deemed a safe and less-risky driver.
Prediction 4: Medical-based premium
It may not be rocket-science to understand that if you have certain health risks, the risk increases while you are driving. Come July 2017, you may expect some insurers to request for medical/health screenings & past records to ensure that you are fit for driving or you have certain risks based on your health state. If you scored a perfect-10 on your screenings, you may expect that your premium is reduced. However, if you have high blood pressure with a chance of a stroke, your premium goes up as well. Just to grasp the gravity of the situation, a video of a man behind the wheel suffered a stroke while mowing down everything on its way went viral recently. Check it out. It’s tragic! It happens, and that’s what troubles insurers.
Prediction 5: Starter packs for youngsters
Photo credit: http://uofmhealthblogs.org/wp-content/uploads/2015/11/mott-blog-teen-driver-blog-image2.png
As you may have read in our previous article that young and somewhat “dangerous” drivers bear higher risks to insurers and charges higher premiums. If you have not read it, click here.
Sometime in the future, there should be insurance offerings that specializes in this growing segment. These days, more and more first-time car owners are as young as 21 to 25. This is because cars are getting more affordable and we could hardly run our daily lives without a car. Qompanion calls it the Starter Pack like how Telcos goes for naming convention sake.
The starter packs may include things that appeals to this segment. Typically reduced coverage for lower price or even more freebies & value-added services like Telcos do.
Updated: 7 July 2017
- Self-driving cars with extra safety features that will reduce risks and therefore premium
- Usage-based policies
- pay when you use your car only
- pay more when approaching accident prone & road-hazard areas
- pay more when raining
- pay more when approaching high traffic areas (real-time)
One can’t help but to wonder if all these sounds like an espionage operation with insurer having to know so much while you’re driving. The one thing that insurers are concerned with is “are you risky?”. They are not interested in listening to your conversation or which girl or boy you are dating or anything remotely private. Besides if you have nothing to hide, it shouldn’t really bother you. It is after all just driving.
Either way, agree or disagree, it is entirely your choice. It is a free country after all and you can choose conventional with higher premiums for privacy or high-tech with lower premiums.
Do let us know your thoughts by emailing us at firstname.lastname@example.org