Many car owners in Malaysia are unaware of certain car insurance tricks that can affect their policy. Whether done intentionally or unknowingly, knowing these tactics helps you avoid losses, claim rejections, or higher premiums.
1. Overstating Vehicle Damage
Some drivers try to inflate the extent of damage to get higher payouts.
- Risk: Claims may be rejected if information is inaccurate.
- Tip: Always report the actual damage only.
2. Hiding Past Accidents or Violations
Concealing accident history or traffic fines may seem easy but:
- Risk: Policy could be voided or claims denied.
- Tip: Always provide complete and honest information to your insurer.
3. Using Your Car for Uncovered Purposes
Example: Using a personal car for delivery work without notifying the insurer.
- Risk: Claims may fail if the insurance doesn’t cover commercial use.
- Tip: Check your policy and inform the insurer of your vehicle’s actual use.
4. Making Small, Invalid Claims
Some drivers file minor, irrelevant claims, like cosmetic scratches.
- Risk: Increases claim record and premiums.
- Tip: Only claim when necessary and valid.
5. Providing Incorrect Driver Information
Letting someone else drive without informing the insurer.
- Risk: Policy may not cover the driver, and claims can be rejected.
- Tip: Always update additional driver information.
6. Renewing Policy Without Checking Details
Many renew automatically without reviewing vehicle or policy details.
- Risk: Incorrect information can cause claim failures.
- Tip: Review your policy each time you renew.
7. Taking Add-ons Without Understanding Benefits
Some take add-ons without understanding their purpose or cost.
- Risk: Pay extra without meaningful coverage.
- Tip: Understand each add-on and choose only what’s relevant.
Conclusion
Knowing these car insurance tricks helps you protect your policy, avoid claim rejections, and save on premiums. Always provide accurate information, understand your coverage, and use your insurance wisely for a safer driving experience in Malaysia.
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