Introduction
Insurance covers what & what it doesn’t is a basic question that many Malaysian drivers fail to understand. Each policy has specific limits and conditions, and misunderstanding them can lead to accidents in the blink of an eye with major financial implications.
For example, comprehensive insurance usually covers your own vehicle damage and third-party damages, while third-party insurance only covers damage to others. Having a clear understanding of these protections is crucial before driving.
What Is Usually Covered
1. Own Vehicle Damage (Comprehensive)
- Accidents, collisions, or breakdowns
- Additional coverage like Special Perils or Windscreen protection
2. Passenger Injuries
- Personal Accident (PA) coverage for driver and passengers
3. Third-Party Damage
- Other vehicles, property, and third-party injuries
No Coverage Provided
- Using the car for purposes other than those stated in the policy
- Damage from natural disasters without additional coverage
- Accidents while under the influence of alcohol or drugs
- Loss of personal items inside the vehicle
Tips to Understand Your Insurance Coverage
- Check your policy before renewal to know limits and exclusions
- Ask your insurer about any unclear additional coverage
- Keep copies of your policy and endorsements for reference if a claim arises
- Use insurance-recognized panel workshops to ease the claims process
Conclusion
Insurance covers what & what it doesn’t is one of the most important aspects every Malaysian driver should understand. By knowing the limits, exclusions, and additional coverage, drivers can reduce the risk of denied claims and ensure both their vehicle and passengers are fully protected.
Read More:
Driving Without a License: Penalties & Consequences
