Every driver is exposed to various risks of accidents, especially when driving on the road. Road accidents can occur at any time and can happen to anyone. They can be caused by the negligence of others or your own mistakes. What should you do if an accident occurs due to your own mistake? Can you still make a claim for own damage insurance?
What You Need to Know About the Own Damage Claim Process
Insurance coverage allows you to make a claim if you’re involved in an accident. This means you no longer have to bear the cost of repairing your car on your own. Generally, there are several types of insurance claims you can consider, such as:
- Own Damage Claim;
- Knock for Knock Claim;
- Third Party Accident Claim.
Basically, you can make a claim for Own Damage Insurance if the accident was caused by you. But what does Own Damage Insurance claim actually mean?
An Own Damage Insurance claim refers to a claim for the loss or damage to your own vehicle under your car insurance. For example, if you accidentally hit a fence while reversing out of your driveway, causing significant damage to your car.
So, you can make an Own Damage Insurance claim to cover the repair costs of your vehicle using your own insurance.
1. Are You Eligible to Make an Own Damage Car Insurance Claim If You’re at Fault?
As a vehicle owner and policyholder, it is important for you to know the type of insurance policy you have each year. This is because each policy provides different coverage.
In Malaysia, car insurance coverage is divided into three types – comprehensive car insurance, third-party, fire and theft car insurance, and third-party car insurance.
|Coverage||First Party Car Insurance||Third Party, Fire and Theft Car Insurance||Third Party Car Insurance|
|Death or injury of third party||✓||✓||✓|
|Loss or damage to third party property||✓||✓||✓|
|Own car fire||✓||✓||✗|
|Own car theft||✓||✓||✗|
|Own car damage due to an accident||✓||✗||✗|
Please note that the checkmarks (✓) indicate that the coverage is provided under the respective insurance type, while the cross (✗) indicates that the coverage is not provided.
If the accident is caused by you and you want to make an insurance claim to repair the damage, you can do so by filing an own damage claim. However, an own damage claim can only be made under the following conditions:
- Your car insurance policy is still valid or active.
- You are the holder of a comprehensive insurance policy that provides coverage for both yourself and third parties.
In essence, only cars protected by comprehensive car insurance or first-party insurance can make an own damage claim. However, making this claim will result in the loss of your No Claim Discount (NCD) or No Claims Bonus.
This means that your NCD rate will be reset to zero percent (0%) during the insurance renewal in the following year. If your car is covered by third-party insurance, you cannot make this insurance claim. You will need to bear all the costs associated with repairing the damage to your car using your own funds.
2. What About The Party You Collided With? Can You Make A Claim For Own Damage Car Insurance?
Any party that has been affected by the accident can make a claim under your insurance policy. Whether you have comprehensive car insurance or third-party insurance coverage, the affected party does not need to make a claim for own damage car insurance because the accident was not caused by their own fault.
Once the affected party makes a claim under your policy, you will automatically lose your No Claim Discount (NCD) for the following year. Your NCD rate will be affected and reset to zero percent (0%), indirectly causing your insurance premium to be higher when you renew your insurance.
However, there are situations where you will not lose your NCD even if you make a claim for own damage car insurance:
- Non-Fault Damage – referring to accident situations verified by the police that were not caused by your negligence;
- Car Mirror Insurance – if you have added additional coverage for car mirrors, your NCD will not be affected even if you make a claim for car mirror insurance.
3. How To Claim Own Damage Car Insurance?
If you are involved in an accident, here are the steps you can take to make a claim for own damage car insurance to cover the cost of repairing your car:
1. Assess the Damage
Assess the extent of the damage to your vehicle. Contact your insurance company if the damage to your car is severe and requires the assistance of a tow truck.
2. Take Photos
Take photos of the accident scene, including the damage to your car and the other vehicles involved in the accident.
3. Record Important Details
Also, record important information about the parties involved, such as phone numbers, full names, identification numbers, vehicle registration numbers, vehicle road tax details, and any other relevant details.
4. Make a Police Report
Immediately bring your car to the nearest police station and make a report. The accident police report must be made within 24 hours of the accident.
If the police report is made after 24 hours, there is a possibility that your insurance claim may be rejected by the insurance company.
5. Repair at Insurance Company’s Panel Workshop
Take your car to the insurance company’s panel workshop for the repairs to be carried out under the claim for own damage car insurance. Prepare the necessary documents for the claims process, including:
4. What Are The Situations That Allow You To Make A Claim For Own Damage Car Insurance?
Here are some other situations that allow you to make a claim for own damage car insurance:
1. Collision with an Object
If your car is damaged due to colliding with an object such as a tree, lamp post, or pole, you can make a claim for own damage car insurance. However, your No Claims Discount (NCD) will be affected and reset to zero percent (0%) in the following year.
2. Collision with an Animal
If your car collides with an animal while driving, you can claim for own damage car insurance. Similar to other situations, you will also lose your NCD.
3. Broken Car Mirrors
You can claim for own damage car insurance if your car mirrors are cracked, broken, or damaged even if you don’t have additional car mirror insurance coverage. However, your NCD will be reset to zero percent (0%).
You can make these claims without affecting your NCD if you have additional car mirror coverage in your policy.
However, it is important to note that claims for own damage car insurance can only be made if you have comprehensive car insurance or first-party insurance coverage.
Get the Best Insurance Protection for Your Car Today
Car insurance coverage can help alleviate financial burdens in unexpected situations. Comprehensive car insurance, for example, allows you to make insurance claims for damages to your own vehicle and third-party vehicles in the event of an accident.
Therefore, it is important to get the best car insurance protection for comprehensive coverage of your car. Additionally, make sure you understand the types of insurance claims, including how to claim for own damage and third-party car insurance claims.
Having basic knowledge about insurance can ensure smooth insurance claims and avoid claim rejections by insurance companies. If your car insurance is nearing its expiration date, renew your car insurance promptly.
To get the best comprehensive insurance coverage plan, consider renewing your car insurance with Qoala. Qoala is the leading insurance comparison and renewal platform in Malaysia. Check car insurance prices for free and easily renew your car insurance today!