What You Need To Know About Comprehensive Car Insurance
What does a Myvi and a Mercedes have in common? Answer: both vehicles need a valid car insurance to be allowed on the road.
New or secondhand, local or imported, if you own a car you need to have a valid car insurance to be able to drive it on the road; it's as simple as that.
Anyone telling you any different is either ill-informed or simply has no regard for his or her own welfare – as well as those around him or her.
Besides, if you don’t have a valid car insurance and road tax (these two come hand in hand, you can’t buy or renew one without the other) you might have to fork out extra money towards paying traffic summons if you get flagged down by the police or stopped at a roadblock.
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 insurance and road tax, both of which need to be renewed on a yearly basis.
But, legal requirements aside, it’s also important to have sufficient car insurance coverage for your vehicle so that if anything bad happens to it (be it a collision, natural disaster, or even theft), you can count on your insurance policy to cover the costs of the repairs – or replacement.
Based on the research done by the Malaysian Institute of Road Safety Research, there were over 500,000 road accidents recorded in 2016 alone, 7,000 of which were fatal. This is reason enough 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 motor insurance available in the Malaysian market, each unique in its purpose to cover you and/or your vehicle.
Third Party Cover
A third-party cover is usually the cheapest among the three offered car insurance covers, and the most basic form of car insurance you can have in Malaysia. However, this policy doesn’t cover you for any damages to your own person or vehicle.
Imagine this: it was a rainy night, and you’re driving home after a late night at work. The road was slick and all of a sudden, your car skids at a junction and you collide into another motorist. By luck, you escaped unscathed - but the same can’t be said for the person you collided with.
To avoid forking out an exorbitant amount 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 name suggests, a third-party cover insurance policy covers claims made against you for bodily injuries or even deaths caused to others (third parties). It also includes any loss or damage to their vehicle or property.
Third-Party Fire and Theft Cover
For the most part, third-party fire and theft cover work just like a third-party cover, except this policy allows you to make a claim if your car suffers a fire damage or gets stolen.
Please be aware that this cover type addresses loss/ damage due to accidental fire and theft, but not loss/ damage due to accident itself. This means that you can only make a claim for events such as: – Your car gets stolen – Damages as a result of an attempted theft such as damaged door locks and broken windows – Damages due to fire
This car insurance policy offers a wider range of coverage than the two car insurance covers mentioned previously. In addition to providing cover for all that was mentioned above, it also covers damages done to your OWN car!
Comprehensive car insurance is advisable if you cannot afford to replace your car just like that, for example by using your savings to buy a new car or using a second car.
The moment you rely on your car to commute to work for example, and those before-mentioned scenarios don’t apply, 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.