Car Insurance: To Claim or Not To Claim?

Have you ever been involved in a minor car accident? Do you file for claim to the insurance company immediately and lose all your “No Claim Discount” (NCD)?

Well, if you ever get into the same situation, take some time to work out a few things. Firstly, assess the damage and see if it’s only require minor repair or major overhaul. Run a few checks and calculations and you will be thanking me for saving you the money.

Let us assume that you had a collision with another car. The cost of repair is estimated at about RM3500 (change rear bumper, bonnet cover, repainting, rear lights… etc). Your current NCD is at 55%. What should you do?

Claim and start your NCD all over again from 0%?

For example, if your car is to be insured for RM50,000. Upon renewal, you will only need to pay a premium of RM849.03 (assume 55% NCD without windscreen cover).

Calculation of premiums:
Sum insured = RM50,000

Full Premium = [(50 – 1) x RM26] + RM251.50 + RM10

= RM1525.50 + RM10

Minus NCD 55% = (RM1525.50 – 55%) + RM10

Premium to be paid = RM696.48

Option A: Claim and Lose the NCD

Option B: No Claim and Save on the NCD

And thus, the total premium difference between the two options (to be paid over 5 years) is only RM1863.89 as compare to paying the RM3500 for repair. Well, you have done the math, which option do you choose?

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Honda Civic vs Hyundai Elantra

It has been 3 years since you bought your first new car? And you are now shopping around for a new and affordable car to suit your upgraded image? Allow me to introduce you to the new Hyundai Elantra and Honda Civic.

At a glance from the showroom, the new Elantra 2.0 will definitely thrills you. Comes equipped with CVVT technology and DOHC engine, it can deliver a maximum power output of 143PS.

Test driving behind the wheel is totally an amazing experience. I especially love the silky-smooth advanced step gate transmission system (in other words, the gear change is superbly quiet and almost unnoticeable). This technology was previously found only in the top of the range Hyundai Sonata and Hyundai Azera 3.8liter V6 engine.

Elantra’s interior design is simple yet spacious. The seats are wrapped in leather, giving it a luxury look. But driving in Malaysia hot weather, I still prefer the non-leather seats. No sticky feeling when you start sweating. Not to mentioned, hot leather surfaces when expose to too much heat.

**Independent US Government Assessment of Interior Volume**

Passenger Volume = 98ft3 (Elantra) vs 91ft3 (Civic)

Luggage Volume = 14 ft3 (Elantra) vs 12ft3 (Civic)

The new Civic 2007 gives a very compact feeling. Somehow, it was designed larger than its predecessor. Must be the new Honda's principle – M&M (Minimum Space for Machine and Maximum Space for Men).

For comparison purposes, I test-driven the Civic 2.0 litre model, rather than the 1.8 litre model. Driving is smooth and very Honda-like. My only comment is the acceleration peddles which needed a little fine tuning. Too much pressure is required to floor it down.

As for the interior, no leather seats for this baby. Another worth commenting aspect is the ingenious flat floor which gives you ample of foot room in the rear space (you will notice that there is no hump at the centre)

The new Elantra is selling at RM93,800 while the Civic is being marketed at RM128,000. Both are on 2.0 liter engines and “almost” similar specifications. If you do not compare the brand name, I would say, the new Elantra is definitely worth the money. What is your call?

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