Car insurance waivers play a vital role in ensuring comprehensive coverage and protection for vehicle owners. These waivers function as add-ons or endorsements to standard car policies, providing additional coverage for specific situations.
More importantly, having the right waivers in place gives you peace of mind knowing that your car is fully protected in various scenarios. In this article, we will highlight four private car insurance waivers that every vehicle owner should consider for wholesome coverage.
Waiver of betterment
Betterment charges occur when an insurance company requires a policyholder to pay a portion of the cost of replacing a damaged part with a new one. These charges are usually applied for vehicles older than 5 years with the minimum rate starting at 15% and the maximum at 40%.
However, policyholders can skip paying these charges with a betterment waiver or add-on. This add-on will exempt them from such charges should the aged vehicle require a part replacement. Waiver of betterment is a useful benefit to have for older vehicles that are susceptible to breakdowns.
Waiver of compulsory excess
Young, high-risk drivers, mostly those under 21 with a probationary (P) or learner’s (L) licence are usually subjected to compulsory excess fees if they run into an accident. Compulsory excess is usually a fixed amount — RM400 — that policyholders have to pay if unnamed drivers cause vehicle damage.
Just as the waiver of betterment, you can also purchase a waiver of compulsory excess if your vehicle is used by unnamed drivers or your children or siblings under the age of 21 with a probationary (P) or learner’s (L) driver’s licence. With the said waiver, you can skip paying the RM400, and let your insurer take care of the entire financial expenses.
Special perils
Special perils refer to specific risks or hazards that are not typically covered under standard private car insurance policies, such as earthquakes, floods, riots, vandalism, and other uncommon or extraordinary occurrences. They exist in two forms in vehicle insurance — full special perils cover and limited special perils cover.
Full and limited coverages are primarily different in the amount of coverage and compensation offered to policyholders. Insurance companies usually charge a premium anywhere between 0.2% to 0.5% of the sum insured for this coverage. Buying a special perils add-on is crucial for wholesome coverage, as they are typically excluded from a standard policy. This means policyholders will have to bear all expenses on their own if a mishap occurs.
Windscreen damage
Coverage for glass breakage in windscreens, windows, sunroofs and lamination or tinting film can be done through the standard policy. However, doing so can affect the No Claim Discount (NCD) as they are considered an own damage claim and signified reckless driving.
To avoid this, it’s recommended to purchase a dedicated windscreen damage waiver or add-on that guarantees windscreen and other glass breakage replacement without affecting the NCD. Windscreen coverage is one of the most sought-after waivers because it allows for the replacement of windscreens due to unexpected reasons.
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