As an insurance comparison site, we get this question a lot: Should I get comprehensive or just third-party insurance? Are you caught in the same dilemma? Breathe easy. Let’s show you why you need to get comprehensive car insurance.
Understand the different types of car insurance
Before you decide on any insurance, it only makes sense if you first understand how each car insurance type works. Let’s take a look at the 3 types of car insurance available in Malaysia.
- Comprehensive Insurance (also known as First Party Insurance)
- Third Party, Fire & Theft Insurance
- Third-Party Insurance
For easier understanding, refer to our visual below for the different coverage offered by each insurance type.
Why should you get comprehensive car insurance?
Based on the function of the different types of car insurance, we are going to share four key reasons why buying comprehensive insurance is a smarter choice.
Own damage claim
When you get comprehensive car insurance, it will cover you, your car and the third party and their car in the event of a car accident fire, theft, damage and loss. Even when you are at fault, you can make an insurance claim called “Own Damage (OD)” claim. Let’s see how your insurance claim can help you with your own damage claim.
1. Your comprehensive insurance will cover the repair cost
Say that you accidentally hit a car in front of you, you can make an insurance claim, though you are at fault. Your insurance will cover the repair cost, so you won’t have to worry about it.
In contrast, if you choose a third-party, fire and theft insurance, or third-party insurance, you will not enjoy this coverage. So you will have to pay the repair cost out of your own pocket.
Without comprehensive insurance, can you afford the repair cost? What if it costs you more than what you have?
2. Your comprehensive insurance will compensate you if your car is a total loss
Say that you badly hit a car that damages both, your car and the third party’s car, you can also make an insurance claim even when you are at fault. As your car is totally wrecked, an insurance adjuster determines your car is a total loss. What will happen then? Your insurance will compensate you either according to the market value or the agreed value of your car.
On the other hand, if you purchase third-party, fire and theft insurance, or third-party insurance, you won’t get any compensation from your insurance if your car is deemed a total loss, caused by your own car.
Imagine that you haven’t paid off your car loan, would you have enough to pay for the remaining loan amount?
If you purchase comprehensive insurance, you will have lesser things to worry about if you meet with an accident especially where you are at fault.
Free towing
Most if not all insurers offer free towing to their comprehensive insurance policyholders. For example, if your car breaks down on the highway, you won’t have to call any workshops to tow your car. Simply pick up your phone and dial the number of your insurance auto assistance.
Imagine that your car breaks down on the road after midnight. Getting a tow truck to tow your car can cost you hundreds of Ringgit even for a short distance. For instance, there was this car driver who complained that when his car broke down after one midnight, he was charged a whopping RM800 for a towing distance of less than 3km!
If you own comprehensive insurance, you can save a lot of money if your car breaks down and needs to be towed to a workshop.
But do pay attention to the towing distance covered by different insurers. Insurers may cap their free towing service to a certain distance or amount.
Free roadside assistance
Other than free towing for breakdowns or accidents, you can also enjoy free roadside assistance, with comprehensive insurance. Some of the roadside assistance you can get includes jump start, battery replacement, tyre replacement, fuel refill when your car is out of fuel, and minor wiring or repair to mobilize your car.
You won’t have to worry about unforeseen events on the road when you have comprehensive insurance. Your insurer is just one call away when you need roadside assistance.
Windscreen claim
If you have comprehensive insurance, you can also claim your car’s windscreen. But be reminded that if you choose to claim your windscreen without having a windscreen add-on cover, you will lose your No Claim Discount (NCD). But don’t worry, there’s a way to cover your windscreen without affecting your NCD.
You can get a windscreen cover as a car insurance add-on by paying just 15% of the sum insured for your windscreen. Say that your windscreen amount is RM1,000, you only have to pay RM150 to get this cover. Remember, this add-on cover is only exclusive to comprehensive insurance. So if you own third-party, fire and theft insurance, or third-party insurance, you have to bear the cost to repair or replace your chipped or broken windscreen.
Comprehensive insurance is limited to car age
Would you like to get comprehensive insurance? Your car age may determine whether you can get this insurance type. Insurers usually approve comprehensive insurance applications for cars that do not exceed a certain age limit. For instance, some insurers set 16 or even 25 years old as the maximum car age that is eligible for comprehensive insurance.
Say that you own a newly-manufactured car using a car loan, it is compulsory for you to get comprehensive insurance. For example, you have just bought a Proton Saga manufactured in 2020 using a car loan. In your case, you must purchase comprehensive insurance.
Is it compulsory to have comprehensive insurance?
It is not compulsory unless your car is brand new and purchased with a bank loan, as shown in the earlier example. But if your car is rather old (say, 15 years old), estimated to cost you a little if your car needs a repair in the case of an accident, and debt-free, you may not need or be eligible to get this type of insurance.
As a guide, read our article on how to choose car insurance.
Get comprehensive car insurance at Bjak
We have shared a few reasons why you should get comprehensive insurance. In summary, on top of protecting the third party, this insurance type will also give your car protection against fire, theft, loss or damage, even when you are at fault.
Although comprehensive insurance offers more coverage, it doesn’t necessarily have to be expensive. At Bjak, you can compare up to 15 car insurance quotes online to check what suits you best. Here’s another good news. You can also choose to pay your insurance in instalments for 6 or 12 months. Visit Bjak today for more information.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
Read more:
