Reading: Best Car Insurance in Malaysia 2022
Why should I get car insurance?
According to the Road Transport Act 1987, it is compulsory for all car owners in Malaysia to have a valid car indemnity and road tax, both of which need to be renewed on a annual basis. But, legal requirements aside, it ’ south besides crucial to have sufficient car indemnity coverage for your vehicle so that if anything bad happens to it ( be it a collision, natural calamity, or even larceny ), you can count on your policy policy to cover the costs of the repairs – or surrogate. Based on the inquiry done by the Malaysian Institute of Road Safety Research, there were over 400,000 road accidents recorded in 2020 alone, about 5,000 of which were fatal. This is reason adequate to buy a suitable – and ample – insurance policy to cover you and your vehicle when you ’ re on the road .
What are the types of car insurance available in Malaysia?
There are three types of drive insurance available in the malaysian market, each singular in its determination to cover you and/or your fomite .
Third Party Cover
A third-party cover is normally the cheapest among the three offered cable car insurance covers, and the most basic form of car indemnity you can have in Malaysia. however, this policy doesn ’ thymine brood you for any damages to your own person or vehicle. think this : it was a showery night, and you ’ rhenium drive home after a late night at work. The road was crafty and all of a sudden, your car skids at a articulation and you collide into another motorist. By luck, you escaped unharmed – but the lapp can ’ thyroxine be said for the person you collided with. To avoid forking out an exorbitant sum of money to pay for his or her hospital bills – not to mention vehicle repairs – you ’ ll need at least a third-party car insurance. Just as its mention suggests, a third-party cover indemnity policy covers claims made against you for bodily injuries or even deaths caused to others ( third parties ). It besides includes any loss or damage to their fomite or property .
Third-Party Fire and Theft Cover
For the most contribution, third-party fire and larceny cover work just like a third-party cover, except this policy allows you to make a claim if your car suffers a fuel damage or gets stolen. Please be mindful that this cover type addresses loss/damage due to accidental arouse and larceny, but not loss/damage due to accident itself. This means that you can alone make a claim for events such as : – Your car gets stolen – Damages as a result of an try larceny such as discredited door locks and break windows – Damages due to fire
This car indemnity policy offers a wide compass of coverage than the two car policy covers mentioned previously. In addition to providing cover for all that was mentioned above, it besides covers damages done to your own car ! comprehensive cable car indemnity is advisable if you can not afford to replace your car barely like that, for exemplar by using your savings to buy a modern car or using a moment cable car. The moment you rely on your car to commute to work for example, and those before-mentioned scenarios don ’ thyroxine enforce, you better have a comprehensive cover which will provide the cash equivalent to the replacement value ( current market value ) of your car, so at least you can go and buy another car. here ‘s a postpone to help you understand the differences between each car policy policy :
What is the ideal sum insured for my car?
Deciding on the right field sum of cable car indemnity is not skyrocket skill. Insurers aim to make your life easy and determine the optimum union insured, based on market measure of your car. With detarification in impel since July 2017, extra factors are relevant to determine your premium. however, the ideal sum insured very goes back to the market value of your cable car lone. The age of your car is a cardinal component to calculate the best sum insured. Simply put, insurers can pull the technical details of your cable car from a database, such as manufacturing year, locomotive size, exemplary character, horsepower, etc., so they know the original price of your car versus the stream marketplace value of your car, given the actual mileage. It ’ s straight-forward, if you purchase a new cable car worth RM100,000 then your summarize insured should ideally equal the same amount. As the master price comes down over the years and your car gets older, the sum insured can besides be reduced every year, in occupation with the lower respect and commercialize price of your car. In theory, you could decide to purchase a lower sum insured than the commercialize value of your car. For exercise, if the market value of your car is RM22,000 after a couple of years, you decide to purchase a union see deserving RM20,000 entirely. You might be able to save a few bucks, but finally, you might decide to even go for the full summarize of RM22,000 because the difference in premium might merely be a relatively little sum and you would be penalized for the under-insurance .
What your car insurance will not (normally) cover?
While it is tempting to dive straight into the hound for the best car indemnity deals immediate, you may want to read the terms and conditions of all three policies carefully and be aware of things included and excluded from your coverage. not all incidents are covered by a car insurance policy, even though you think they might merely be, because as your car insurance plan is slightly higher – or the highest – one of the best plans you can buy, compared to the other plans. here is a list of conditions that may not be covered under your car indemnity policy :
Your own death or bodily injury due to a car accident
If you think a standard cable car policy could cover the costs of your medical bills – or even funeral – in the event you get into a cable car accident, think again. even a comprehensive car insurance policy only covers the damages done to your vehicle ( and the person ’ randomness which you may have collided into ) vehicle. however, you can add personal Accident indemnity cover to your car policy as a rider to help cover your medical costs. alternatively, you can besides get a separate stand-alone medical or personal accident policy policy to help with the aesculapian bills. – barely be sure to check if the policy covers injuries that are caused by car accidents .
Your liability for claims from your passengers
A passenger who gets hurt because of a car accident will normally have an easier case compared to the person behind the steering wheel – if the accident involves two vehicles, one of the drivers will most likely be found negligent and is apt for the physical injuries done to the passenger. To avoid paying for these claims from your own pockets, you can add Passenger Liability Extension Cover to your car policy policy .
Damaged or stolen custom car accessories
Pimping your brand-new car with custom-made rims, leather seats, and expensive sound systems might earn you brownie points with your friends ( flush dates ). But, these epicurean upgrades may attract thieves to your cable car like bees to honey. Most standard car insurance policies don ’ deoxythymidine monophosphate cover the costs of repairs or replacements for these custom accessories, although you can check with your car policy provider if you can extend the coverage to your accessories as well .
Consequential loss, depreciation, wear and tear, mechanical, technical breakdown failures, or breakages
Like everything else – cars are n’t built to final constantly. As fomite parts wear out with time ( excluding parts made from glass e.g. windshield ), the value of your car depreciates along with them. You ‘ll probably lose up to 40 % of its initial value 5 years down the road – literally ! If you ‘re planning to insure a cable car that is pushing 15 years of senesce, it may be hard to get a comprehensive examination car insurance policy for it, but you can opt for a third-party screen alternatively .
Vehicle damage due to acts of nature e.g. flood, landslide, typhoon
These inauspicious events, along with earthquakes and hurricanes are normally referred to as natural disasters or acts of God and are not normally not covered in standard cable car policy policies. On the early handwriting, you can choose to boost your policy with extra cover against natural disasters. Of course, this will result in a higher premium, but if you live in an sphere that is prone to floods and/or landslides, it ’ randomness worth paying the supernumerary money than spending your integral savings on the repair costs – which no doubt will be highly expensive .
What are the add-on covers available for car insurance?
The car policy allows for policyholders to extend coverage to include extra benefits and extra cover apart from the standard coverage. Do communicate with your insurers to request for these extra covers. 1. flood, windstorm, rainstorm, typhoon, hurricane, volcanic eruption, earthquake, landslide/landslip, settling or sink of the soil/earth or other convulsions of nature 2. breakage of glass in windshield or windows 3. assume, carouse and civil disturbance 4. tutelage and screen purposes 5. Additional named driver 6. All drivers ’ elongation for private car policies issued to a company of businesses merely 7. passenger indebtedness 8. indebtedness of passengers for acts of negligence 9. Additional business manipulation
What is the difference between a Car Insurance and Personal Accident Insurance?
You must be thinking, why do I need a personal accident policy on lead of a car insurance ? Well, we have prepared a comparison table to answer that motion : With effect from 1 June 2018, the Goods and Service Tax ( GST ) will be set to zero .
How do insurers calculate car insurance premium rates in Malaysia (Post de-tariffication)?
Before July 2017, the premium rates for car insurance in Malaysia were pretty much the lapp ( based on the value of your vehicle and its engine capacity ) across all policy providers. This was because the premium rates were tariffed by Bank Negara Malaysia ( BNM ). Insurer based their premium calculation chiefly on the technical details and age, consequently the market measure of your car. however, since the implementation of de-tariffication in July 2017, insurance companies now look into assorted extra other factors to determine your car policy premium. This risk-based assessment is put into play to give drivers an bonus to actively reduce their hazard and therefore enjoy lower premiums. The key driver-related risk factors are : Age – If you are a ‘ P ’ license holder, you may need to pay a higher bounty. As per the motive de-tariffication, your gamble visibility indicates a higher risk due to a lack of driving have. Gender – Although it is said that male drivers are more likely to engage in aggressive drive behavior, we are very much aware of the being of viral videos featuring not-so-friendly female drivers ampere well so… all ’ s fair when you are on the road ? Occupation – If your problem requires you to be on the road frequently, then it ’ south deplorable to say that chances are your bounty is most likely higher excessively. For example, the indemnity premium for a bus driver is higher because of their job nature which involves transporting passengers from one placement to another, as compared to a desk-bound agency worker who may be leading a sedentary life style. Residence – You are more probable to pay a higher premium for your car indemnity if your home is in Petaling Jaya as opposed to person who is staying in Subang Jaya. Why ? Because different areas have different crime rates and consequently, higher or lower chances of your car getting stolen or damaged. Claim history – This goes without saying. If you had a lot of claims in the by, insurers will take note of this and increase your premium as your risk profile is high. Use of car – The more you drive in a class, the higher your risk.
How do I submit a car insurance claim?
It can be challenging if you to submit a car insurance claim without researching what is it that ’ mho required. For a hassle-free car insurance claim, always keep in mind that the type of claim you wish to take will determine the documents needed to process your claim. For your public toilet, we have a prepared a board to assist you in the readiness of the compulsory documents prior to submitting a claim.
Own Damage Claim
Let ’ s say that your car is involved in a hit and run and since you do not know who is the person that has knocked into your vehicle, you will need to submit a claim on your own car insurance policy. This is referred to as own damage claim. Do note that this alone applies if you have a comprehensive examination policy and the solution is that your NCD entitlement will be forfeited. When you notify your insurance company regarding the accident, they will provide you with the names of approved workshops/panel workshops that you can your fomite for repair. here are the documents required for car policy claim in malaysia :
- Copy of your NRIC
- Copy of your most recent driver’s license
- Original copy of the police report
- The Keputusan report issued by the police department
- Car registration card
- Claims adjuster report including bill of repair cost for your car or any damaged property
- If required, photos of the damaged car or property
see that all these documents are prepare advance as the workshop will merely repair your vehicle after receiving your policy company ’ s blessing. Once the repairs have completed, you will receive a presentment by the workshop asking you to collect your vehicle .
Own Damage Knock-for-Knock Claim
precisely like the own damage claim above, the own damage knock for knock call applies when it is clear that the demerit lies on the third party and the official police report results have determined the third base party as the ones who will be compounded for the discourtesy. This report will serve as a form of testify which can be used to submit for your ‘ own Damage Knock-for-Knock ’ claim. besides, it won ’ deoxythymidine monophosphate affect your NCD adenine well .
How do I pay my car insurance premium?
As you may well know, there are several ways to pay your annual cable car indemnity premiums, such as auto-debit, on-line payments, a well as the traditional requital options like cheques and cash. But you besides have the option to pay it in installments. Some credit cards allow you to convert your car indemnity premium requital to 0 % easily Payment Plan ( EPP ). The tenure varies from one recognition wag provider to another, but this can significantly help to lighten your fiscal burdens and make room for other things – such as putting more money towards your savings .
If my car breaks down, will my car insurance pay for a rental car?
This is a identical policy carrier wave particular interrogate as every indemnity party handles rental car coverage differently. Some give a small sum of coverage as a nonpayment feature on their policy and others do not. however, you want to check if the extra expense is worth the coverage particularly in households with multiple vehicles, as many car haunt shops offer a detached rental car while work is being done .
Does my car insurance cover me when I rent a car?
normally, your car insurance alone covers your own car and the insured drivers for that car. You better check with the cable car rental caller what to do in case of an accident. The lease cable car is insured by the car rental company .
Does my car insurance pay if someone else is driving my car?
insurance companies require that policy holders declare all drivers that are covered. This could be person persons and/or everyone in your family. technically, there is no policy coverage for person driving your cable car, who is not listed and therefore covered – very dangerous and very expensive !
Can I cancel my car insurance policy anytime?
You can cancel your car policy at any time. however, there might be a penalty, if you cancel within the annual period, as the standard coverage runs for one year. Best approach would be to swap insurers towards the end of the annual contract and plainly not renew, but change to a new insurance company .
Car Insurance Glossary
Add-Ons – As car indemnity policies offer a basic form of coverage for your vehicle, you may want to consider addition covers/extensions for excess protection and peace of take care. According to PIAM, here are some of the add-ons which can be included in your car indemnity policy : 1. deluge, windstorm, rainstorm, typhoon, hurricane, volcanic volcanic eruption, earthquake, landslide/landslip, cave in or sink of the soil/earth or other convulsion of nature 2. windshield protective covering 3. strike, carouse and civil commotion 4. tuition and test purposes 5. Additional named driver 6. All drivers ’ elongation for secret car policies issued to a company of businesses only 7. passenger liability 8. liability of passengers for acts of negligence 9. Additional business consumption Accident – An consequence or occurrence that is unanticipated and unintended. Adjuster – one who settles indemnity claims ; may be a compensable employee or an freelancer operator. Average Clause – In the event of a fond loss, your claim will be adjusted in accord to the helping that your vehicle is insured for. For example, if you have insured your cable car up to 60 % of the market value, you will merely receive up to 60 % of the entire repair cost by the insurance company. Car Liability Insurance – A form of liability policy that is specifically designed to indemnify for loss incurred through legal liability for bodily injury and damage to property of others caused by accident arising out of ownership or operation of a car. Excess – besides known as a deductible, it is the sum that you will need to bear before your insurance company pays for the poise of your fomite damage claim. Excess can be divided into 2 types which is compulsory excess and other excess. Compulsory Excess – This is non-negotiable and is normally set by the insurance company in the situation that your vehicle is driven by : – a person who is not named in your policy – a person who is named in your policy but under the old age of 21 – a probationary ( P ) driving license holder – a full drive license holder with less than two years driving experience Other Excess – This is assignable and applicable at discretion of the insurance company. Insurers are sometimes uncoerced to implement no excess on a case to case footing. Consequential Loss – Damages which are caused by a certain action committed by the policyholder or a third party and not an consequence that is unexpected. Claims Adjuster – an person who investigates policy claims to determine the extent of the insurance company ’ s liability. Release Letter/Release of Liability – This refers to the legal document between 2 parties. typically, it involves the Releasor ( person promising not to sue ) and the Releasee ( person or party who may or may not be apt ). By signing this mannequin, the Releasor acknowledges that he or she understands the risks and claims involved and agrees to not sue the Releasee for by or future injuries or damages. Daily Cash Allowance – an sum of money that is paid casual to the policyholder in the position that the vehicle insured is undergoing repairs Loading – This refers to the excess charge that is added by insurers when they consider the electric potential policyholder as a risk-prone individual. For model, if you are a newfangled driver, your car policy policy may be higher as insurers will deem that you are more likely to end up in an accident due to your miss of driving feel. other factors which may lead you to a car insurance with a high cargo would be the long time of your fomite. so yes, even it may seem like a commodity idea to buy an spell 8-year-old second-hand luxury cable car with a low mileage at a fraction of it ’ south price, some insurers may consider it as a risk when they bring you onboard as a policyholder of their car policy as the perception that an older cable car is more likely to encounter problems due to daily wear and tear remains. Compensation for Assessed Repair Time (CART) – A form of third party benefit, it is compensation provided by the insurance of the person who have hit your fomite and the come is decided by the number of days it takes for your vehicle ’ second compensate. A claims adjuster will perform the assessment and specify the come of compensate time required for the cable car animate. The determination of CART is to provide you with funds which can be utilised for a lease car, allowing you to continue with your day by day life as the workshop repairs your car within the specified duration. Bear in thinker that CART does not equate to the total of time your car will be spend at the workshop and that it is only available for accident victims. Loss of Use – In the event that you are involved in an accident, you may be provided a vehicle or a sum of money which you can use to rent a vehicle. Market Value – The sum of the insured measure based on the current market value of the vehicle Agreed Value – The union of the insured sum based on the vehicle ’ sulfur senesce and model Insured Value/Sum Insured – For newly vehicles, the see value refers to the purchase monetary value. For other vehicles that do not fall under this class, the insured rate is equivalent to the marketplace rate of the vehicle when a policy is bought. Betterment – When your damaged vehicle is sent for repair, it is normal that some wrecked parts are replaced with new franchise parts. Your insurance company will only bear a dowry of the costs. You will have to pay the deviation according to the standard scale of improvement which can range from 0 % to 40 %. Roadside Assistance – A service provided by insurers to policyholders who may be suffering from a fomite breakdown/accident No Claim Bonus/Discount – Available in the shape of a refund in premiums, either in full moon or fond. It can besides be a dismiss on your premiums if you decide to renew your car insurance policy as a commitment profit Disclosure – Letting the insurers know of information that may be vital in influencing the bounty of the cable car indemnity. Actual Value Cost – Amount required to repair or replace your vehicle plus depreciation. Replacement Cost – Actual amount required to repair or replace your fomite subtraction depreciation.
Theft – The illegitimate aim of property of another : the term includes such crimes as burglary, larceny, and looting. Under-Insurance – A condition in which not enough insurance is purchased to cover the sum cash or market value of the see asset. NCD (No-Claim-Discount) – The agio account payable may be reduced if you have no-claim-discount ( NCD ) entitlement. NCD is a ‘ reward ’ system for you if no claim was made on your insurance policy on an annual footing. Different NCD rates are applicable for different classes of vehicles. For a private car, the scale of NCD ranges from 25 % to 55 % as provided in the policy .