If you are a first-timer, buying car insurance can seem complicated. But don’t feel small as even some of the seasoned car owners may still need help with car insurance. Put your worry to rest as we are going to share what you need to know about car insurance.
What is car insurance?
Car insurance or auto insurance is a contract between you and the insurance company that protects you against financial loss in the event of a car accident, fire, and theft. Your insurance coverage depends on the insurance policy that you choose. In exchange for your paying a premium, your insurance will pay the losses that are covered by your insurance.
As car insurance will cover the insured car from the risk of damage and loss, this will ease the financial burden of the policyholders during unexpected events involving their car.
Why do you need to buy car insurance?
It is mandatory for motor vehicle owners to buy motor insurance and road tax in order to use public roads in Malaysia. Following the Road Transport Act 1987, all vehicle owners must have a valid Motor Vehicle License (road tax) and motor insurance for vehicles to be used on the road.
For your information, you need to first renew your insurance (at least third party insurance) before you can proceed with road tax renewal. By having valid insurance and road tax, car owners can be better protected and avoid getting fined by the authorities.
How does car insurance work?
In order for you to enjoy the protection by your insurance, you will need to pay an amount or premium to your selected insurer annually.
The premiums that you and other policyholders pay will go to the insurer’s funds. Your insurance company will manage the funds and use them to cover the financial losses involving the insured cars of the policyholders, according to respective insurance policies.
What types of car insurance policies can you buy?
There are 3 types of car insurance policies that you can choose:
Comprehensive insurance
This type of policy offers the most comprehensive coverage. It gives protection to policyholders from any loss or damage of their property and third party’s claims, which include the loss or damage to the third party’s property, injury, or death caused by you.
Third party, fire and theft insurance
This policy protects policyholders from third party’s claims that include loss or damage to the third party’s property, injury, or death caused by you.
It also offers additional coverage that will protect your vehicle in the event of fire and theft.
This policy is typically cheaper than comprehensive insurance but more expensive than third party insurance.
Third party insurance
Third party insurance is the most basic policy as it only gives coverage to the third party. It includes damage or loss to the third party’s property and life as a result of a car accident caused by you.
Say that your car is damaged by the accident and you are at fault, you will need to bear the repair cost of your car.
When should you buy car insurance?
You need to buy car insurance as soon as you buy a car. This applies to both new and used or second-hand cars.
You must renew your insurance annually, as early as two months before it expires. If you can’t seem to remember your car insurance expiry date, you can check the date online or through your insurance policy or cover note.
Ensure your insurance is active at all times for your protection.
Where can you renew car insurance?
You have the option to renew your insurance online or offline.
Renew car insurance online
You may use insurance comparison sites like Bjak to easily compare and renew your insurance online. You may also buy your insurance online directly from your preferred insurance provider.
Renew car insurance offline through agents
Alternatively, you can visit any premise of your preferred insurance agent to renew your car insurance.
Get professional advice before buying car insurance
We have shared some of the most important things that you need to know about car insurance. For further information, read more about other important things to know before buying car insurance. If you need help at any point, you can always reach out to Bjak for professional and unbiased advice that we offer for free.
It is important that you get the right insurance for sufficient protection. To help you get the right car insurance, just use Bjak, one of the largest insurance comparison sites in Malaysia. You can get up to 15 car insurance quotes for free. Visit Bjak 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!
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