Complete Guide of Car Insurance, How to Choose the Best Car Insurance

Kali terakhir diperbaharui December 12, 2022 oleh Hariz Hafiz
Complete Guide of Car Insurance, How to Choose the Best Car Insurance

How to find the best car insurance for you? Every road user must have a car insurance to protect the driver or third party in the event of any incidents that may cause death, damage or loss. On average, road users spend at least two to four hours on the road daily. This means that road users are exposed to the risk of accidents or higher road damaged cars. Basically, there are many things to keep in mind before buying the best car insurance for you. A complete guide to this car insurance may help you choose car insurance that suits your needs.

Best Car Insurance: 9 Things to Know About Car Insurance in Malaysia

Car insurance generally works to provide protection in the event of any unwanted incidents such as damaged cars, self -injury, other passengers or third parties due to road accidents or otherwise. Therefore, Qoala lists nine important things related to vehicle insurance such as insurance types and how to choose the best car insurance for your guidance and reference as follows:

1. What Is Car Insurance?

Vehicle insurance or car insurance is one of the compulsory protections that the vehicle owner must have. By law, the vehicle owner must have at least third-party insurance to enable the vehicle to be used on the road. Car insurance plays an important role in protecting vehicles such as cars, motorcycles and so on from any risk. In addition to offering financial protection against car damage due to accidents, it also protects any possible injuries due to road accidents as well as protection against theft, burning cars and so on.

2. The Importance of Getting the Best Car Insurance

The following is the importance of buying car insurance especially to vehicle owners:

In the event of accidental damage, the cost of car repair will be borne by car insurance – in the event of an accident during the expiry of the insurance, for example, you may have to bear the cost of repair that can sometimes reach thousands of dollars;
In addition, this car insurance can also protect you from any claim made by your third party if you make a mistake and cause serious damage to other people’s property.

3. Types of Car Insurance in Malaysia

In Malaysia, there are three types of car insurance that can be purchased in the market consisting of the most basic protection (third -party insurance) to the most comprehensive protection (comprehensive insurance). Each of these types of insurance offers a wide variety of protection, usually with different terms and terms depending on their insurance companies.

Third-party Insurance

In general, every motor vehicle in Malaysia must have at least the most basic protection of third-party insurance to allow vehicles to be used on the road. The third party intended in the context of this protection refers to other car owners involved in an accident with your car.

Third-party insurance covers damage to a third party or property in the event of an accident caused by your vehicle. In addition, this insurance policy also protects you if you are responsible for a third party injury or death. Third -party car insurance offers limited protection.

This policy can only be used for third -party claims and protects third parties from injury or accidental death and cannot be used to claim damage to your vehicle. Therefore, the price of third -party car insurance is usually offered at a low price compared to other insurance policies.

Third-party Insurance, Fire and Theft

Third -party insurance, fire and theft are not much different from third -party insurance in terms of car protection. This insurance policy is the same as third -party insurance protecting the driver from any claim made by a third party including injury, death, damage or loss of third party property due to an accident caused by your car.

In addition to the basic protection as stated, the policy includes additional protection that protects the vehicle in the event of car damage due to theft or accidental car fire. This means that you can make a claim if your car door or your car mirror is broken down due to a stealing attempt, or a car burning due to a car damage.

Comprehensive Insurance

This type of car insurance offers the same protection as third -party insurance and third -party insurance, fire and theft. It includes protection on its own vehicle and is not limited to third -party vehicles only. In other words, it not only bears third -party liability but also protects you as a car owner in the event of any loss of property and accidental injury.

In Malaysia, new cars purchased through financial financing or car loan, most expensive cars and luxury cars are required to buy comprehensive car insurance. This is because, this type of insurance offers more comprehensive protection than other insurance. It also prevents you from raising higher repair costs in the event of an accident.

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4. Comparison of Car Insurance

In general, the best type of protection or insurance should depend on your needs and budget. The following is a comparison between the three types of car insurance in Malaysia for your reference:

Types of Car InsuranceThird-Party Insurance
This policy offers the most basic insurance coverage against third party claims including death, injury, damage and property loss due to accidents.
Third-Party Insurance, Fire and Theft
This policy offers the same coverage as third party insurance, with the added protection of car damage due to fire or theft.
Comprehensive Insurance
This policy offers comprehensive coverage, not limited to theft and fire incidents. It offers protection against damage, loss of property and accidental death or injury.
Personal Car
Offers insurance coverage on your own car in the event of an accident
XX/
Third-Party Car
Offers third-party car insurance coverage in the event of an accident
///
Personal Injury
Protects you in the event of injury due to an accident
XX/
Third Party Injury
Protecting third parties in the event of injury due to an accident
///
Injuries to Passengers in Other Cars
Protect other passengers in the event of injury due to an accident
///
Own Car Damage Due to Car Burning
Provides protection in the event of damage to property due to fire
X//
Own Car Damage Due to Attempted Theft
Provides protection in the event of damage to property due to attempted theft
X//
Theft
Provides protection in the event of damage to property due to theft
X//

5. Additional Protection: Special Perils, Car Windscreen Insurance

In Malaysia, there are several insurance companies that offer additional protection such as car mirror insurance and natural disaster insurance including Alliance insurance companies, Zurich, Etiqa Takaful, Axa Affin and others. Owners who wish to increase natural disaster protection, for example, have to pay around 0.2 to 0.5 percent of the amount of insured protection depending on the selected insurance company. For example, if your car is covered by Allianz insurance with a current value of RM26,000 in a car, you only have to pay RM52 in addition to natural disaster protection.

The following are some of the additional protection that the insurance company or takaful is offered to the vehicle owner:

Special Perils

What is Special Perils? Special Perils protection refers to additional protection for vehicle damage due to natural disasters such as floods, storms, landslides, lands, fallen trees and so on depending on the insurance policy you choose.

In general, cars with special Perils protection but damaged by natural disasters such as floods, trees during storms and so on can claim damages or claims of flood drowning cars from insurance.

Windscreen Insurance

Mirror or windscreen insurance is also commonly added as additional protection. If your car is protected by this additional protection, you can claim if the car mirror cracks or breaks suddenly if your car is not covered by car mirror insurance, you may have to bear expensive repair costs in the event of such incidents. Typically, the cost of replacement or car mirror price is around RM500 to RM800 depending on the type and model of the car.

6. Prices of Car Insurance

Car insurance prices usually change annually according to the current market value of your car. Here are six common factors that affect car insurance prices:

Types of Insurance, Additional Protection

Insurance prices are also influenced by the type of vehicle insurance selected or additional protection entered (if any). Comprehensive insurance for example is offered at a higher price than third -party insurance.

The Current Market Value of the Car

Market value or car depreciation rate can also affect the overall price of vehicle insurance. The lower the market value of the car, the cheaper the price of the car insurance.

Car Manufacture Date

In addition, car insurance prices are also closely related to the year of car manufacturing. MYVI 2015 insurance prices are usually cheaper than myvi 2021 insurance prices.

Car NCD

Generally, vehicle owners who do not make any accidents insurance claims in the first five years can enjoy a discount (NCD car) of up to a maximum of 55 percent. It allows the vehicle owners to obtain insurance coverage at lower prices during car insurance renewal.

Location

In addition, location factors can also affect insurance prices in Malaysia. Car insurance prices in Peninsular Malaysia are more expensive than car insurance prices in Sabah and Sarawak – risk analysis in Peninsular Malaysia is said to be higher and risky than Sabah and Sarawak.

Engine Capacity

Insurance prices are also determined based on engine capacity – the higher the car engine capacity, the more insurance prices. For example, the price of Axia 1.0 cc insurance is usually cheaper than the 1.3 cc bezza insurance price.

best insurance for car

7. How to Calculate Car Insurance

The amount of premium payable usually depends on the total amount of protection, type and car model, claim history, car NCD rate and more. Here’s how to calculate car insurance for your guide:

Comprehensive Premium Total = Gross Premium + Additional Protection (if any) + SST + Stamp Duty

Basic Premium: RM1,128.40
Subtract 55% NCD Car: RM620.62
Add Mirror Insurance: RM120 (for RM800 protection)
Add Special Perils: RM52 (for RM26,000 protection)
Gross Premium: RM679.78
Add Service Tax: RM40.79
Add stamp duty: RM10.00
Total Premium Paid: RM730.55

Assuming you have a six-year-old Perodua Myvi 1.5L car model with an insured amount of RM26,000, a 55 percent NCD car rate and you include additional cover protection and Special Perils. Compared to the original cost, you only have to pay the total cost of the car insurance of RM730.55 and save at least RM507.78.

8. How to Choose the Best Car Insurance

The process of buying vehicle insurance is not as bad as imagined. It is a very simple process especially if you already know the aspects to consider before buying a car insurance. Qoala lists six tips or how to select the best car insurance, according to your needs:

1. Buy Insurance Directly Through Agents, Insurance Companies or Online Platforms

Basically, you can choose whether to buy or renew car insurance directly through agents, insurance companies or online insurance platforms such as Qoala Malaysia. Qoala is a reliable, simple, fast and safe insurance platform.

2. Determine the Type of Car Insurance

Then, determine the type of car insurance that suits your needs. It is advisable to take into account other factors such as driving frequency, driving location and residence location (at risk for theft crime, floods etc.) before choosing the appropriate type of insurance coverage.

In addition, you can also consider other value -added services offered by insurance companies such as:

  • Tow Truck without additional charges;
  • Easy and fast insurance renewal process online;
  • The process of claiming flood insurance, uncomplicated accident insurance;
  • Location of easy -to -access and comprehensive panel workshops;
  • Efficient customer service.

3. Identify the Appropriate Amount of Protection

Check out your current market price or Current Market Value Value – this allows you to know the estimated amount of protection for your car. In addition, a car market value review is also intended to ensure your vehicle is insured with the appropriate amount of protection as it can affect the amount that can be claimed in the event of an unwanted matter.

Low Coverage

If the insured car is lower than the market value, you are considered to be willing to bear any difference in value in the event of a loss or damage. In other words, you will only receive a claim payment according to the amount insured.

High Coverage

If the insured car is higher than the market value, the maximum compensation will be limited to the current market value of the vehicle. This means that the vehicle owner will only receive reasonable claims with the current market price of the car.

4. Get a Quote

You can get quotes from several car insurance companies to help you make choices. In addition, quotes can also be customized according to your needs. To obtain insurance price quotations, insurance companies usually need the following information:

  • The owner’s full name;
  • Owner’s Identity Card Number;
  • Phone number;
  • Email;
  • Residential address;
  • No car plate;
  • Car Type and Model.

5. Compare Car Insurance Prices

Although the prices of insurance prices from different insurance companies are not as different as the insurance rates in Malaysia are regulated by Bank Negara Malaysia, you are advised to compare the insurance price before making a decision to make sure you get a really competitive price.

6. Choose the Best Insurance Company

Select the best car insurance company that suits your needs. Each insurance company offers its own advantages and disadvantages depending on the type of protection you choose. Take into account various factors before making a decision. Company A may offer low -cost insurance insurance but has negative feedback from customers, compared to company B that offers the best service in line with more expensive insurance prices.

9. How to Claim Car Insurance

If you are involved in a road accident resulting in property damage without any physical injury, you may make a claim of damages by considering the following three ways:

1. Claims of Self-damage

If an error is caused by you, make a claim from your own insurance company. However, you may lose the car NCD if you make this claim.

2. Claims of Self-defect of Knock-for-knock

However, if the accident does not cause you, you can consider claiming your own Knock-For-Knock or Own Damage Knock-For-Knock (OD KFK) damage. What is OD KFK? It refers to a third party insurance claim method but through your own insurance company. This means that your insurance company will reclaim the costs issued from a third party insurance company.

3. Claims of Third-party property damage

In addition, you can also claim to a third party insurance company in the event of a car or property damage due to a third -party road accident. You can refer to how to claim this accident insurance for further guidance.

Hopefully this partnership can help you choose the best car insurance policy for your car. If you are considering a comprehensive and best car insurance for you, visit the Qoala website for more info. Qoala is an Insurtech insurance platform that provides a wide variety of insurance such as car insurance, motor insurance, home insurance and life insurance in Malaysia with a guarantee of safe, affordable and easy vehicle insurance process.

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