Car Insurance In Malaysia

Car Insurance In Malaysia – What do Myvi and Mercedes have in common? Answer: both of these vehicles require endorsement of valid motor vehicle insurance on the road.

New or used, local or imported, if you own a car you must have valid car insurance to drive it on the road; it’s that simple. 

Car Insurance In Malaysia

Anyone who tells you otherwise is either ignorant or not interested in their own interests – and those around them.

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Also, if you don’t have valid car insurance and road tax (the two go hand in hand, you can’t buy or renew one without the other), you may have to pay more money for a summons if you get one. any. flagged by the police or stopped at a roadblock.

Under the Road Transport Act 1987, all car owners in Malaysia are required to have valid car insurance and road tax which must be renewed annually.

However, in addition to the legal requirements, it is also important to have adequate car insurance so that you can rely on it if something bad happens to it (be it a collision, natural disaster or even theft). to cover the cost of repair – or replacement.

Based on a study by the Malaysian Road Safety Research Institute, there were more than 400,000 road accidents in 2020 alone, of which nearly 5,000 were fatal. 

Liberty Insurance Malaysia

This is enough to ensure that you buy the right – and adequate – insurance to cover you and your car on the road.

There are three types of car insurance available in the Malaysian market, each different in its purpose to cover you and/or your car.

Third party insurance is usually the cheapest of the three car insurances available and the most basic type of car insurance you can have in Malaysia. 

Picture this: it’s a rainy night and you’re walking home after a late night at work. The road was slippery and suddenly your car skidded at an intersection and collided with another driver. Fortunately, he escaped unscathed – but the same cannot be said for the man he met.

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To avoid having to pay huge sums to pay hospital bills – not to mention car repairs – he will at least need third-party insurance. 

As the name suggests, third party insurance covers claims made against you for personal injury or even death caused by others (strangers). It also covers any loss or damage to his vehicle or property.

Third party fire and theft cover mostly works like third party cover, except that the policy allows you to make a claim if your car is damaged due to fire or theft.

Please note that this type of cover covers loss/damage due to accidental fire and theft, but does not cover loss/damage due to the accident itself. 

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This car insurance policy provides wider coverage than the two car insurance policies mentioned above. 

In addition to providing coverage for all of the above, it also covers damage to your OWN vehicle!

Comprehensive car insurance is recommended if you can’t afford to cover your car alone, for example from savings to buy a new car or use a second car. 

At a time when you are dependent on your car to go to work for example, and those situations mentioned above do not work, it is better to have comprehensive coverage that will provide money equal to the replacement value (current market value) of your car, so you can go buy at least another car.

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Deciding on the right amount of car insurance is no science. The aim of insurance companies is to make your life easier by determining the total sum insured based on the market value of your car. 

With information valid as of July 2017, other factors are important in determining your premium. However, the sum insured is only returned to the market value of your vehicle.

Simply put, insurance providers can get technical information about your car from the database, such as year of manufacture, engine size, model type, performance, etc., to know the original value of your car compared to the current market value of your car, because the actual mileage .

In other words, if you buy a new car worth R100,000, your sum insured should be equal to the same amount. 

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As the initial price decreases over the years and your car ages, the sum insured may decrease each year in line with the lower value and market value of your car.

In theory, you can choose to buy a lower sum insured than the market value of your car. For example, if the market value of your car after a few years is RM22,000, you decide to buy only RM20,000 worth of sum insured.

You may be able to save a few dollars, but in the end you may decide to go ahead and get the full RM22,000 as the difference in premium may be a relatively small amount and you will be penalized for having less insurance. .

While it’s tempting to dive right in to find the best car insurance deals, you may want to carefully read the terms and conditions of the three policies and note the inclusions and exclusions in your coverage.

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Not all accidents are covered by car insurance, even if you think they might be, because your car insurance plan is a little higher – or even higher – one of the best plans you can buy compared to other plans.

If you think that standard car insurance can cover the cost of medical treatment – ​​or even a funeral – in the event of a car accident, think again. 

Even comprehensive car insurance only covers damage to your car (and the person who may have collided with it) in the car. 

However, you can add accident insurance to your car insurance as a passenger to help cover your medical expenses. 

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Alternatively, you can get private health or personal accident insurance to help with medical bills. – don’t forget to check if the policy covers injuries caused by motor vehicle accidents.

A passenger injured in a car accident will generally have lighter liability than the driver – if two vehicles are involved in the accident, one of the drivers is likely to be negligent and liable for personal injury. passenger. 

To avoid paying for these claims out of pocket, you can add extended passenger liability insurance to your car insurance policy.

Driving around in your new car with custom rims, leather seats, and expensive sound systems can earn you brownie points with friends (and even a date). 

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Most standard car insurance policies do not cover the cost of repairing or replacing these custom accessories, although you can check with your car insurance provider to see if you can extend your accessory coverage.

As car parts wear out over time (except glass parts, e.g. windshield), the value of your car decreases. 

If you’re planning to insure a 15-year-old stressed car, it can be difficult to find comprehensive car insurance for it, but you can opt for third-party insurance instead.

These tragic events, along with earthquakes and hurricanes, are often referred to as natural disasters or acts of God and are usually not covered by standard auto insurance policies. 

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Yes, it will result in higher premiums, but if you live in an area prone to flooding and/or landslides, it’s worth paying more than spending all your savings on repair costs – which will undoubtedly be too much work. it is expensive.

Auto insurance allows policyholders to extend coverage to include additional benefits and additional coverage beyond standard coverage. Contact your insurance brokers to ask for these additional covers.

1. Flood, Typhoon, Typhoon, Typhoon, Typhoon, Volcanic Eruption, Earthquake, Landslide, Land/land subsidence or subsidence or other natural vibrations. 

You must be thinking why do I need personal accident insurance before car insurance? To answer this question, we prepared a comparison table:

7 Car Insurance Considerations For New Malaysian Drivers

Prior to July 2017, car insurance premium rates in Malaysia were almost the same (based on the price of your car and engine size) across all insurance providers. 

The insurance is based on the calculation of the premium mainly on the technical data and age, i.e. the market value of your car. 

However, since the abolition of tariffs came into effect in July 2017, insurers are now looking at other factors to determine your car insurance premium. 

This risk-based rating is done to incentivize drivers to reduce their risk and therefore receive lower premiums. Important risk factors for drivers are:

Aia Family Car Insurance

Age – if you hold a ‘P’ licence,