Guide To Buy The Best Car Insurance
Importance of Car Insurance
Having car insurance is important for the future good. Through car insurance coverage, a car owner will not feel overburdened if something happens to themselves or the car, later. At least the cost will be covered by the insurance company which indirectly lessens the burden of the owner.
Things you must know about Roadtax
Roadtax is compulsory - The Road Transport Department (JPJ) requires all vehicle owners to have a valid MVL which is also called as roadtax in order for vehicles to be used on the road.
Insurance is required to renew roadtax - A vehicle owner must renew the insurance and roadtax before it reaches its expiry date.
Vehicle owners are encouraged to renew motor and car insurance & roadtax within 2 months before the expiry date.
Types of Car Insurance Coverage
Comprehensive Car Insurance
Comprehensive car insurance is also known as first party insurance. It provides the most comprehensive protection. You will be covered for accidents, fire and theft. The insurer will also cover (pay the cost) if an accident happened to your car and the party you hit. This policy is suitable for car below 10 years old.
Third party, fire, and theft Car Insurance
This car insurance type provides coverage to your own vehicle if your car gets caught in fire, or gets stolen. If an accident happened (and you’re at fault), you will need to repair the car with your own money while the car you hit will be covered by your car insurance company.
Third party Car Insurance
This is the most basic type of car insurance. It only covers the third party involved in the car accident. No protection will be provided in the event of an accident (alone), theft or fire. Third party car insurance is subject to insurance companies’ approval.
Sum Insured of Car Insurance Coverage
Sum insured is the maximum amount a car can be insured according to the current market value. Click here for your reference.
The sum insured of car insurance can be determined by two different values:
Agreed value
Agreed value is the amount which has been agreed both by the car owner and insurance provider based on the car’s model and year.
Example: If the amount insured is RM35,000 and an accident occured, the car insurance company will give full compensation of RM35,000.
Market value
To put it in the simplest words, market value is defined as how much your car is worth before the damage occurs.
Example: If the amount insured for the car was RM35,000 but the market value for the car during the accident drops to RM30,000, the car insurance company will pay compensation depending on the market value of RM30,000.
Car Insurance Additional Coverage
Below is a list of additional coverage commonly offered by most car insurance and Takaful companies. However, the terms and conditions of each car insurance and Takaful company may differ from each other:
- Windscreen
- Named Driver
- All Driver
- Natural Disaster (Special Perils)
- Strike Riot and Civil Commotion
- Passengers coverage
- Personal Accident
- Towing
No Claim Discount (NCD)
NCD is the discount given to you if no claim has been made under your policy with the current insurance company during the year. The rate of your NCDs will increase if there is no claim made by you in the following year.
Rates for cars vary as below:
NCDs rate for car:
However, if you have earned 55% NCD and eventually you made a claim during that year, your NCD rate will be back to 0% the following year.
Comprehensive Coverage of Car Insurance
Each car insurance company offers a similar policy but with different benefits or advantages. Here are some of the highlights of the car insurance package offered.
*Note: Please refer to insurance companies’ product disclosure sheet and your insurance policy when there is a difference.
Allianz Private Car Insurance
FREE24-hour Emergency Towing up to 150km
FREE1 Additional Driver
FREE24-hour Claim Assistance
Best Car Insurer 2018
Instant Cover Note approval
Suitable for E-hailing purpose
Pacific & Orient
FREE24-hour Towing up to RM 350
FREE24-hour Roadside Assistance
FREEJumpstart or change of battery service
FREERefuel empty tank service
FREEReplacement of tyre service
FREE1 Additional Driver
FREE24-hour Claim Assistance
Established Brand, 1972
Voted Best Value and Price
Insurance acceptance for Old Vehicles
RHB
FREE24-hour Towing up to RM 300
FREE24-hour Roadside Assistance
FREEJumpstart or change of battery service
FREERefuel empty tank service
FREEReplacement of tyre service
FREE1 Additional Driver
FREE24-hour Claim Assistance
Takaful Malaysia Private Car Takaful
FREEAll Drivers Coverage
FREE24-hour towing up to 50km every trip, no trip limit
FREE24-hour roadside assistance program
FREEJumpstart or change of battery service
FREERefuel empty tank service
FREEReplacement of tyre service
1st Takaful Operator in Malaysia
Cash back for no claims up to 7.5%
Instant Cover Note approval
Easy and Fast Claims approval
Nationwide Panel Workshops
Suitable for non-Muslims too
Zurich Takaful
FREE24-hour towing up to RM 200 per year
FREEAll Additional Named Drivers
FREE24-hour Claim Assistance
Easy and Fast Claims Approval
Islamic
Instant Cover Note approval
Suitable for E-hailing purpose
Liberty Private Car Insurance
FREE24-hour Emergency Towing up to 150km
FREE24-hour Roadside Assistance
FREEJumpstart or change of battery service
FREERefuel empty tank service
FREEReplacement of tyre service
FREE1 Additional Driver
FREE24-hour Claim Assistance
FREEPersonal Accident (PA) coverage for Policy Holder (Up to RM 10,000.00)
FREEMedical Expenses for Policy Holder (Up to RM1,500)
FREEKey Replacement
FREEChildseat Replacement
Suitable for E-hailing purpose
Takaful Ikhlas Private Car Takaful
FREE24 hours Emergency towing up to 100km
FREE24 hours Roadside Assistance - Bantuan Ikhlas
FREEadditional 10 drivers
FREEJump start and Battery replacement services
FREEChanging of Flat Tyre Services
FREEPetrol Assistance Services
FREELocksmith Services
FREEPersonal Accident Insurance for Car Owner (Covers RM 10,000.00)
Chubb
FREE24-hour Emergency towing up to RM 400
FREE1 Additional Driver
FREE24-hour roadside assistance program
FREE24-hour claim assistance
Tune
FREE24-hour Emergency towing up to RM 300/200KM
FREE1 Additional Driver
FREE24-hour roadside assistance program
FREE24-hour claim assistance
Frequently Asked Questions when buying Car Insurance
How do car insurance companies calculate car insurance premium rates in Malaysia?
Before July 2017, the premium rates for car insurance in Malaysia were pretty much the same (based on the value of your vehicle and its engine capacity) across all car insurance providers. This was because the premium rates were tariffed by Bank Negara Malaysia (BNM). Car insurance companies based their premium calculation mainly on the technical details and age, therefore the market value of your car.
However, since the implementation of de-tariffication in July 2017, car insurance companies now look into various additional other factors to determine your car insurance premium. Among the factors that will be taken into account in determining the premium price of car insurance are as follows:
Driving record
Usage of the car
Location
Job
Age
Safety features on vehicles
How to submit a car insurance claim?
1. Call your car insurance company hotline if you involved in a serious accident
2. Gather all the evidence and record important information such as time and place of the accident, photos of the accident, photos that include damage of your vehicle and other vehicle involved and exchange information with the vehicle involved
3. Make a police report within 24 hours
4. Report to the car insurance company within 7 days of the accident
5. Make sure your car is sent to the panel workshop of the car insurance company
6. Fill in the car insurance company's claim form
7. Submit all forms required by the car insurance company
8. Check with your car insurance company about the repairs done by the panel workshop
9. Sign the car insurance company release form when you are satisfied with your car after the repair
If another driver drives my car and is suddenly involved in an accident, can I make a car insurance claim?
Basically, the car insurance company will charge an excess amount for claim if your car is involved in an accident caused by another driver. However, you can make a car insurance claim if you have added-on the driver name in the policy or you have purchased a car insurance policy with all drivers coverage when renewing your car insurance.
Can I cancel my car insurance policy at any time?
Yes, you can cancel your car insurance policy at any time. However, penalties may be imposed if you cancel the policy before the expiration date.
Can I renew my car insurance if my car is older than 15 years?
The package offered by the car insurance companies can be lesser because of the age of your car. However, the car insurance packages offered at BJAK.my cover a wide range of cars and hence you’ll still be able to renew your car insurance at BJAK.my.
How is comprehensive car insurance different from third party, fire and theft car insurance?
The main difference is that comprehensive car insurance covers the damage of your car during collision (road accident), fire and theft but third party, fire and theft car insurance covers the damage of your car during fire and theft only. There is no towing service if you purchase a third party, fire and theft car insurance.
Ways to buy car insurance at the lowest price.
Don’t auto-renew your car insurance
Some of the car insurance companies will offer to auto-renew your car insurance. Please refrain from auto-renewal because the car insurance premium that you are going to pay may not be the lowest in the market. Car insurance companies update the car insurance premium from time to time and hence it’s advised to compare the car insurance price from various car insurance companies before renewal.
Renew your car insurance earlier than the expiry date
Some of the car insurance companies charge higher when your car insurance has expired. Therefore, it is important to renew your car insurance earlier than expiry date to stay protected and to enjoy the lowest price.
Check your car insurance coverage before purchase
Every car may have different usage and purpose and hence it is crucial to purchase the car insurance package that’s most suitable for your car. Some of the quotations provided may include car insurance coverage that’s not applicable for the use case, or have a sum insured that’s higher than the actual market value. Therefore, car owners are advised to check the coverage of the car insurance to make sure that they are paying only for what is needed.
Renew your car insurance at BJAK.my
BJAK.my is a one stop car insurance agency in Malaysia. BJAK.my helps car owners to find the lowest price for their car insurance by achieving all the above mentioned steps.
Many car owners have renewed their car insurance in BJAK.my and provide good feedback on social media. You can read BJAK.my review here. Let’s request a from BJAK.my today.