How To Calculate Car Insurance Malaysia

How To Calculate Car Insurance Malaysia – What do Myvi and Mercedes have in common? Answer: Both vehicles must have valid auto insurance to be allowed on the road.

If you own a car, new or used, local or imported, you must have valid car insurance to drive it on the road; It’s very simple. 

How To Calculate Car Insurance Malaysia

Anyone who tells you otherwise is misinformed or doesn’t care about their own well-being or that of those around them.

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Furthermore, if you don’t have valid car insurance and road tax (you can’t buy or renew one together without the other), you’ll have to shell out extra money to pay if you receive a traffic fine. . Reported 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, both of which must be renewed annually.

But beyond the legal requirements, it is also important to have adequate car insurance for your vehicle so that you can count on it if something serious happens (be it a collision, a natural disaster or theft). Repair or replacement costs.

According to a study by the Malaysian Road Safety Research Institute, 400,000 road accidents were reported in 2020 alone, resulting in nearly 5,000 deaths. 

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All you need to do is get appropriate – and sufficient – ​​insurance to cover you and your vehicle when you’re on the road.

There are three types of car insurance available in the Malaysian market, each unique in its purpose of covering you and/or your vehicle.

Third party liability cover is the cheapest of the three commonly offered car insurance policies and the most basic car insurance you can buy in Malaysia. 

Picture this: It’s a rainy night and you’re driving home after a late night at work. The road is slippery and suddenly your car skids at an intersection and you crash into another motorist. Luckily you came out unscathed, but that doesn’t apply to the person you met.

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To avoid spending large sums of money on hospital bills – not to mention vehicle repairs – you need at least third-party car insurance. 

As the name suggests, a civil liability insurance contract covers claims against you for personal injury or death caused by others (third parties). This also includes loss or damage to their vehicle or property.

Third party fire and theft cover works much the same as third party cover, except this policy allows you to make a claim if your car is involved in fire or theft.

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

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This car insurance offers broader coverage than the two car insurance policies mentioned earlier. 

In addition to all of the above, you also cover damage to your own car!

If you can’t afford to replace your car, it’s a good idea to get comprehensive car insurance, where you can use your savings to buy a new car or use a second car, for example. 

For example, if you rely on your car for work and the above scenarios do not apply, it is best to have comprehensive coverage that gives you the cash equivalent of the replacement cost (current dealer value) of your car, so that you can at least to leave. and buy another car.

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Determining the right amount of car insurance is not complicated. Insurers aim to make your life easier and determine the right amount of insurance based on your car’s market value. 

Since the exemption in July 2017, additional factors are taken into account when determining your premium. However, the ideal insured amount actually only corresponds to the market value of your car.

In simple terms, insurers can get the technical details of your car from their database, such as year of manufacture, engine capacity, model type, horsepower, etc., to know the original cost of your car and the current market value of your car. , taking into account the original mileage.

It’s simple: if you buy a new car worth RM100,000, your insurance amount should be equal to the same amount. 

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The initial cost decreases over the years and as your car ages, the insurance amount may also be reduced each year to reflect the lower value and market value of your car.

In theory, you can decide to take out an insured amount that is lower 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 insurance worth only RM20,000.

You may be able to save a few dollars, but ultimately you may decide to go for the full amount of RM22,000 as the premium difference may be relatively small and you will be penalized under the insurance policy.

While it may be tempting to immediately shop around for the best car insurance deals, you may want to carefully read the terms and conditions of all three policies and consider what is and is not included in your cover.

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Not all incidents are covered by car insurance because your car insurance is slightly higher (or higher) than other plans, so it is one of the best plans you can buy.

If you think that standard car insurance can cover the cost of your medical bills (or even funeral expenses) if you are involved in a car accident, think again. 

Comprehensive car insurance only covers damage to your vehicle (and the person you hit). 

However, as a driver you can add personal accident insurance to your car insurance policy to help cover your medical costs. 

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Alternatively, you can also purchase separate medical or personal accident insurance to help pay for medical bills. – Check whether the policy covers injuries caused by car accidents.

The case of a passenger injured in a car accident is generally easier than that of the person behind the wheel: if two vehicles are involved in the accident, one of the drivers is found negligent and responsible for the bodily harm . the traveler 

To avoid having to pay for these claims out of pocket, you can add passenger liability expansion coverage to your auto insurance policy.

If you pimp your brand new car with custom rims, leather seats and expensive audio systems, you can earn brownie points with your friends (even dates). 

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

As parts of a vehicle wear out over time (except glass parts such as the windshield), the value of your car decreases with it. 

If you are considering insuring a car that is over 15 years old, it may be difficult to get comprehensive car insurance, but you can opt for third party liability cover instead.

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

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This will obviously result in a higher premium, but if you live in an area prone to flooding and/or landslides, it’s worth paying extra rather than spending all your savings on repair costs – which will undoubtedly be a lot will be higher. Dear

With an auto insurance policy, policyholders can expand their coverage with additional benefits and additional coverage beyond the standard coverage. Please contact your insurers to request this additional coverage.

1. Flood, windstorm, rainstorm, typhoon, hurricane, volcanic eruption, earthquake, landslide, subsidence or submergence of the land/earth or other natural disasters. 

You’re probably wondering why I need personal accident insurance instead of car insurance? Well, we have prepared a comparison table to answer this question:

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Before July 2017, premium rates for car insurance in Malaysia were almost the same across all insurers (depending on the value of your vehicle and its engine size). 

Insurers base their premium calculations mainly on the technical characteristics and age, hence the market value of your car. 

However, since the rate reduction came into effect in July 2017, insurance companies are now taking into account a number of additional factors when determining your car insurance premium. 

This risk-based assessment aims to encourage drivers to actively reduce their risks and thus benefit from lower premiums. The most important driver-related risk factors are:

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Age – If you hold a “P” driving license,