{"id":17548,"date":"2021-05-04T20:00:00","date_gmt":"2021-05-04T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/mistakes-people-make-when-buying-car-insurance.html"},"modified":"2026-03-27T08:28:49","modified_gmt":"2026-03-27T00:28:49","slug":"mistakes-people-make-when-buying-car-insurance","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/insurance\/mistakes-people-make-when-buying-car-insurance.html","title":{"rendered":"#WhatIWishIKnew – 8 Common Mistakes People Make When Buying Car Insurance"},"content":{"rendered":"\n

There are several important factors you need to consider when looking for auto insurance. The process may seem simple, but car owners tend to make these 8 common mistakes when purchasing or renewing their car insurance. Read the article below to find out.<\/strong><\/p> \n

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Choosing the right car insurance<\/a> is as important as buying the right car. The two processes must go hand in hand – the car you choose will influence the type of coverage that you will need and vice versa.<\/p> \n

Despite this reality, looking for the right car policy can be a dull, tedious, and even confusing process. For instance, cutting corners by getting minimum coverage may seem like a good strategy if you\u2019re on a tight budget, but you could end up being underinsured instead, and on the hook for much bigger bills in case an emergency arises in the future.<\/p> \n

So, knowing how to approach the matter and understanding the red flags comes with great payoffs: you\u2019ll score a good deal, have some peace of mind, and most importantly, save money.<\/p> \n

At the end of the day, the goal is to find a policy that suits your needs, has maximum coverage but at a minimum cost. Here are the 8 common mistakes people usually make when it comes to buying car insurance.<\/p> \n

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Click here to purchase or renew your car insurance and get eVouchers worth up to RM200 for FREE!
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1. Not being thorough with your research<\/h2> \n

Shopping for car insurance is similar to shopping for any other product – it\u2019s a big commitment that will require basic research, dedication and time. So, it\u2019s important to go into it with the proper mindset.<\/p> \n

For starters, one of the basic requirements of any purchase is to get the item from a trusted source. Whether you are buying car insurance for the first time, or renewing it online, you must first verify if the insurer is a certified entity. If you need a list of the licensed insurance operators in Malaysia, click here<\/a>.<\/p> \n

For further due diligence, we recommend you flipping through the insurer\u2019s social media profiles to verify their authenticity, get customer reviews, and to understand their brand ethos.<\/p> \n

Another best practice when researching for car insurance is to check if there are complaints or enforcement actions against an insurer you\u2019re considering.<\/p> \n

Do yourself a service and make sure you are satisfied with the level of research that you\u2019ve done on the insurer before purchasing a motor insurance from them.<\/p> \n

Related:<\/strong> 3 Main Types of Car Insurance Coverage (And What They Actually Cover)<\/a><\/p> \n

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Compare, compare and compare before deciding on anything important in life!<\/em><\/p> \n

2. Not comparing the different insurance plans<\/h2> \n

We can\u2019t emphasise this point enough, and we\u2019re not just saying this because we\u2019re a comparison website. Exploring and comparing products gives you a more comprehensive view of all the possible options in the market.<\/p> \n

Besides just comparing the different quotes for the premiums, it\u2019s also important to compare the different insurance providers as well as factors like claim settlement ratio etc., as you would want a product that gives you the most out of what you\u2019re investing in.<\/p> \n

By understanding a claim settlement ratio, for example, you get a better picture of the number of claims settled out of the total number of claims received by the insurance company. From that ratio, you can grasp the reliability of an insurance company when it comes to paying the claims, which will help you down the line at the time of raising a claim.<\/p> \n

Though we may seem biased, we truly believe that the best way to compare all your car insurance options is by doing it online. You\u2019ll get a better view of the different policies available, side by side, and you can compare certain factors such as premium, coverage, etc.<\/p> \n

If you are looking for car insurance, we recommend you checking out our website<\/a>.<\/p> \n

3. Having too much or not enough coverage<\/h2> \n

Understandably you would want to keep an eye on your bottom line, but the need to be prudent shouldn\u2019t keep you away from securing the best possible option in the market.<\/p> \n

One of the common mistakes that drivers often get themselves into is trading ample coverage for that notorious low price – but it backfires when drivers end up without enough protection.<\/p> \n

The key here is to find the right balance between purchasing too much and too little coverage.<\/p> \n

For example, if you go with third party coverage, you will be shielded against losses, damages, or deaths caused to other parties. However, you will need to be responsible for your own damages and losses, as the insurer will not provide compensation for your car. So in other words, you are liable for the damages sustained on your car – and these figures can be costly.<\/p> \n

Of course, we are not saying that third party is a definite no – instead, what we\u2019re really trying to say is that the coverage that you should go with depends on what you\u2019re looking to protect yourself against.<\/p> \n

At the end of the day, it\u2019s really better to be safe than sorry, especially because you\u2019re not the only person at risk \u2013 you will also be putting everyone else at risk, too. Ultimately, the main purpose of auto insurance is to have financial backing in case of unfortunate events.<\/p> \n

4. Falsifying information in your application<\/h2> \n

First of all, you shouldn\u2019t be lying in any situation. But in this context, don\u2019t lie to your auto insurance company when getting a quote or making a claim because it will only do you more harm than good.<\/p> \n

You might be deemed unqualified for coverage in case of an accident, and insurers could be forced into cancelling your policy. It also puts your ability to get a policy in the future in jeopardy.<\/p> \n

Be honest and transparent when it comes to the application process or when making a claim. Disclose all facts such as age of vehicle, claim history, previous accidents, engine modifications, and more. The goal is not to give the insurance company a reason to refuse to pay out any claims.<\/p> \n

All in all, just don\u2019t lie because not being transparent or blatantly lying will only make it more difficult for you to defend yourself if you are later sued. In some situations, not being honest with your insurer gives them grounds to deny a claim.<\/p> \n

5. Not knowing or understanding what your needs are<\/h2> \n

Each driver has different needs when it comes to their car policy, and it\u2019s crucial that you know what your needs are before buying one.<\/p> \n

If you didn\u2019t already know there are three main types of car insurance in Malaysia: third party, third party, fire, and theft and comprehensive cover. If you need some guidance on how to choose the right car insurance coverage, we recommend you checking out this piece<\/a> we recently did.<\/p> \n

But just in case you\u2019re confused over these wordings, here\u2019s a quick overview of how insurance companies term them:<\/p> \n