When you buy a car, it is mandatory to own an insurance for the vehicle, whether it is an old car or new. It protects you against unprecedented events such as accidents and thefts. However, it is important to understand that motor vehicle insurance policies vary based on the car insurance companies. Also in Malaysia you can apply for a motor insurance policy online. Car insurance premiums are generally the main distinguishing feature between various policies in this category, but there are many ways to ensure paying lower premiums as insurance providers are quite competitive in the field, as every vehicle owner needs to have a motor insurance.
Types of Car Insurance Available in Malaysia
There are 3 main categories of car insurance in Malaysia, available to its citizens or expatriates. The different types of car insurance are based on the level of the coverage and it also indicated the amount that can be claimed by the insurance holder if the vehicle sustains loss or damages.:
Third party coverage: The policyholder is insured against claims in the occurrence of physical injuries or deaths that is caused to other persons/ the third party. The policyholder also can claim for damage or loss to third party property that has been caused by the insured’s vehicle. This is the minimal coverage policy for any car holder, enough for being allowed to drive their car on road, legally. Note that under this insurance only third party affected by the insured’s car can claim for the loss, damage injury or death caused by the policyholder, without any claims accepted from the insurance holder’s end. With little coverage and minimalistic requirements the insurance is cheap at the same time. This car insurance in Malaysia is often referred as a Act Only car insurance.
Third party, Fire and Theft Cover: A Third Party, Fire and Theft policy is slightly more expensive as compared the third party cover, but more affordable than the comprehensive cover. The coverage include the driver of the car which generally is the policyholder against claims made by the third party, for both physical injuries or death, loss or damage of third party property that has been caused by the insurance holder’s vehicle. This is generally the same as a Third Party Cover, but added coverage of damages from fire and theft to the insured’s vehicle is the difference. Generally, in a Third Party, Fire and Theft Cover, the amount insured for third party damages is higher and at times unrestricted however the amount insured by this policy for fire and theft is lower.
Comprehensive Cover: This type of insurance policy for a vehicle, as the name suggest has got wider range of coverage in terms of protection, for both first and third parties (first party is the insurance holder/owner of car, the driver, and the third party is everyone else affected by the accident, fire or theft). This policy allows the insured to get the same coverage benefits as in the Third Party, Fire and Theft policy, but claims can be made against damages to the insured's own vehicle also not restricting it fire and theft. In the motor insurance industry in Malaysia, the standard procedure for claims against stolen vehicles or total loss lead to compensation to the policyholder based on the vehicle's market value at the time of damage or loss. It could also be the amount agreed in the policy, whichever is lower. Some car insurance companies also reimburse the policyholder based on an agreement of the vehicle value specified earlier with the policyholder, instead of the current market or resale value. But it is important to note, not everyone is eligible for a vehicles not exceeding a particular age. It is suggested to apply for a Comprehensive Cover if the car is relatively expensive car, as the policy package and its entitlements for the driver and vehicle owner is based on it.
Also, keep it in mind that none of the three car insurance packages available in Malaysia provide protection against injury or death sustained by the driver or passenger of the policyholder.
How To Apply For A Car Insurance Online
There are a few things that need to be kept in mind when applying for a car insurance online in Malaysia:
- Market Value of the vehicle. If the vehicle is new, the insured value will be equal to the purchase price.
- Make sure that you choose a sustainable claim amount that is both affordable when it comes to paying the premiums and at the same gives you comfortable claim amount when needed.
- The policy applicant has to make sure that he/she gives all the information about the vehicle and the driver in details as it is essential by most car insurance companies for proving you the right amount for coverage.
- There are certain cases under which these claims are not accepted by the insurance companies. You need to be aware of what are the exceptions for claims.
Once you have chosen an adequate car insurance for your vehicle, simply apply with the required documents. Incase you are taking a car loan, online car insurance from the same company if available may be beneficial. All this can be researched when you buy your car insurance online. If you have the documentations ready, the application time will only take a few minutes.
When Might An Insured’s Claim Be Rejected by A Car Insurance Company
Some of the claim restrictions of a motor insurance varies of the policy that the car insurance company is providing, but the following are the general exceptions that an insured has to keep in his/her mind:
- In the case of death or bodily injury to the insured or the driver of the insured vehicle caused by a motor accident. For covering the car owner or the driver the personal accident insurance or medical insurance will help the individual financially.
- The passenger is also exempted from claiming any amount in the case of a motor accident if he/she was in the insured’s car. However, certain car insurance companies offer the advantage of paying higher insurance premiums that includes Passenger Liability Extension Cover, in case the passenger sues the driver or owner of the car. In such cases the insured or driver is liable for the passenger.
- If the insured vehicle has any non-factory fitted accessories such as sports rims, car stereos, leather seats, etc and they get stolen, you cannot claim any amount. Hence, it is advisable to add security systems to your car to ensure that your precious vehicle accessories do not get stolen.
- If the vehicle has been through depreciation, consequential loss, wear and tear, mechanical, technical breakdown failures, or breakages the claimable amount gets lower. However, remember to read the car insurance company’s definition on the above mentioned situations as it may vary on the provider.
- Note that it is very difficult to get an insurance for your vehicle if its over the age of 15 years and the depreciation of the car price amount may also affect the ultimate claim amount even if your are able to get an insurance for your old car.
- In the case the car has been subject to damage due to acts of nature such as typhoons, earthquakes, landslide and floods you will not be covered for the consequences to your car. However, some insurance companies do provide you the option for paying higher premiums to avail claims even for the passengers under such circumstances.
Car insurance Calculator - To Calculate Your Monthly Premiums
Generally, there are many factors when go into calculating the insurance premium based on the insured’s driving record and most importantly the state of the car. Hence, it is essential to keep such factors in mind. However to get an estimate insurance premiums the policyholder will be payable for car insurance, you use an online car insurance calculator. Premium amounts also vary depending on the details of your plan such as type of coverage, engine capacity, NCD and additional benefits.
Car Insurance FAQs
What are the types of car insurance available in Malaysia?
A. There are 3 types of car insurance available in Malaysia that include third party cover, third party fire, and theft cover, and comprehensive cover policies.
Which is the cheapest insurance policy type I can avail?
A. The third party cover only covers the third party involved in the accident, i.e. everyone else other than the insured and the driver affected by the unfortunate event.
Can the driver or insured claim against their injury or death?
A. None, of the insurance policies for the car permit that, instead the personal accidental insurance or medical insurance can be used, if the need arises.
Which is the most advisable insurance cover available?
A. Comprehensive cover provides the maximum coverage by law, but the premium prices are the highest.
Can I avail a car insurance if the vehicle is older than 15 years?
A. Very few car insurance providers may be ready to provide you with insurance, however even if they do, there are very high chances that they will charge very high premiums to insure the car.
How can i calculate premiums for a car insurance quickly?
A. There are many factors that go into deciding the premium payable for the insured amount of the car and an accurate amount for premiums can be calculated only when applying for the policy. However, a rough estimate can be calculated with the help of online car insurance calculator.