Car Insurance Add-ons in Malaysia
- By CompareHero.my
- May 19, 2017
If you are looking to increase your car insurance cover, you can choose to get a car insurance add-on. Car insurance add-ons in Malaysia extend your basic car insurance to provide cover against additional risks, such as windshield damage or theft of accessories.
In Malaysia, there are a few different car insurance add-ons that you can choose from. To help you pick the right add-ons to your car insurance, we have listed each add-on with a detailed explanation. Not sure what you are getting into? Find out how car insurance works.
Contents
- 1. Protect yourself against windshield damage
- 2. Cover your car accessories against theft
- 3. Add special perils cover to your car insurance
- 4. Be safe against strikes, riots and civil commotion
- 5. Extend your cover to a named driver
- 6. Cover all your bases with All Driver Coverage
- 7. Limit your Legal Liability
- 8. Compensation for Assesses Repair Time (CART)
1. Protect yourself against windshield damage
You can enhance your car insurance with an addition that covers you against windshield damage. Windshield insurance premium is calculated based on the value of your windshield. The windshield premium is always 15% of your windshield value. That means that if your windshield is worth RM 2,000, your insurance premium will be RM 300.
Since windshield damage is something that can easily occur without your fault, you will not lose your No Claim Discount (NCD) if you claim windshield insurance. Even though the windshield cover is a useful add-on to have, the 15% is pretty high compared to your standard car insurance. Also good to know is that the cover only counts for one claim, so if you claim your windshield add-on once, you will have to repurchase the cover and pay a new premium to remain covered against windshield damage.
2. Cover your car accessories against theft
If you have a third party, theft and fire coverage, your vehicle itself is already insured against theft, but the accessories in your car are not covered by this insurance. With the Car Accessories add-on, you can extend your cover to include your car accessories. This includes radios, navigation systems, chrome rims and anything that can be considered a car accessory.
Keep in mind that this addition only applies to car accessories. If you leave your wallet in your car and it gets stolen, then this add-on does not apply because your wallet is not a car accessory.
This plan also covers you if your car accessories are damaged during an accident or an attempted burglary. Stolen tires are not covered under this plan.
The additional premium for this coverage is about 15% of the value of the accessories. Find out how to calculate your car insurance premium.
3. Add special perils cover to your car insurance
Although not as widely applicable as the first two, the Special Perils Covers can save you a lot of money. By getting this additional insurance cover, you will be insured against damages due to natural disasters, such as earthquakes, sinkholes, landslides and floods etc. The additional cost for this cover is around 0.5% of your sum insured.
Since this add-on only activates in very unlikely events, the premium is very low. If you live in an area that has a relatively high amount of floods, you could consider this plan, just to be sure. Other than that, this add-on will likely not see much use.
4. Be safe against strikes, riots and civil commotion
This insurance plan covers you against damages to your vehicle due to strikes, riots and civil commotions. You won’t see a lot of use for this add-on in Malaysia, but the insurance premium is very low at 0.3% of the sum insured.
5. Extend your cover to a named driver
A “Named Driver” is someone who can drive the insured car or motorcycle with the owner’s permission and be covered by the insurance with the same privileges as the owner. In Malaysia, you can put two drivers into your motor policy for free. Any additional driver will cost an additional RM 10.
This is a relatively inexpensive insurance add-on to get. If an accident happens with an unnamed driver behind the wheel, insurance companies will reduce your payout by RM 300. So if you regularly let other people drive your car, this add-on would be a smart choice.
6. Cover all your bases with All Driver Coverage
This extension gives you additional cover for any other drivers that might use the car. This is especially useful for vehicles registered under a company or cars that are shared. The extra cover allows all drivers to enjoy the full insurance cover of the plan.
The additional premium for this extension is RM 50 per vehicle.
7. Limit your Legal Liability
There are two types of legal liability cover for car Insurance in Malaysia. Both policies are not mandatory in Malaysia, but when you plan to travel in your car into Singapore, it is mandatory to have those two covers in your motor policy. Also, if you are earning extra money as an UBER or Grab driver, this is an extremely useful policy to get. Check out the best car insurance for taxi drivers to find out more.
a) Legal liability of Passenger – Cover for bodily injury caused by your passengers
Imagine you are driving your car with your friend. Your friend decides to throw a bottle out the window, for whatever reason. The bottle hits a guy just walking by, he falls and has a bleeding head wound. If this scenario happened, you could be sued for causing injury to others because the bottle came from your car. With the Legal liability of Passengers you will be insured against cases like these, i.e. if you get sued for personal injury.
The additional premium for this cover is RM 7.50 per car.
b) Legal liability to Passengers – Protection against legal action brought against you by your passengers
This cover will insure you in case you are being sued by your passengers for negligence. For example, if you cause an accident and your passengers are injured. If they are convinced that the accident was caused by your negligence, they might sue you for it. This add-on will compensate you for the financial loss you might incur from such events.
The premium for this cover is 25% of Third Party premium.
8. Compensation for Assesses Repair Time (CART)
This add-on will compensate you for the estimated number of days it takes to have your car repaired. If you have been in an accident, your car could be in the shop for a few days. By getting this add-on, you will receive a compensation that allows you to pay for a rental car. If you have no financial buffer, this cover could be the only way you could afford a rental car while your car is in the shop. To claim this add-on you can only rent cars from licensed car rental agencies with a proof of receipt. The cost of this add-on varies across insurers. Some insurers might even give you free access to a rental car in these cases.
This list is supposed to give you a comprehensive overview of the different car insurance add-ons and extensions that are available to you. Each one comes with its pros and cons. It is largely up to you to see if you driving style warrants any of these add-ons. Check out our free comparison tool to find a loan to finance your new car purchase.
Related: 5 Types Of Car Insurance Add-ons (& Whether Or Not They’re Worth Getting)
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How To Renew Your Malaysian Car Insurance
- By CompareHero.my
If you own a car, renewing your car insurance is something that needs to be done every year. Here are important points to take note of with car insurance renewal and how you can save money while doing it.
Contents
Do it yourself vs. Insurance agents
There are two options available when it comes to renewing your car insurance – you could do it yourself or via an insurance agent.
With an insurance agent, all you have to do is provide the agent with the necessary information (such as your car chassis and engine number), and make the payment. Then everything else with be handled by the agent. The cost will be determined by the current value of your car and the type of coverage you choose to take. In most cases, upon renewing your car insurance, your agent will also then renew you road tax and then deliver it to you. However, this method may cost more than if you were to go to a car insurance provider directly because the agents take a percentage for their own cut.
If you go to an insurance provider directly, you’ll get to enjoy a discount of about 10%. If you choose to do it yourself, here are the steps you need to take:
- Determine your car market value (you can use MyCarInfo) and the No Claim Discount (NCD) percentage if it is applicable to you. You can then get a rough estimation of how much your car insurance would cost. Remember that the valuation is only a guide. Actual values may vary between depending on the condition of the car.
- Prepare the necessary documents which includes an insurance cover note, your existing insurance policy and your car grant.
- Go to any car insurance provider and get a quotation for your car insurance. If you are satisfied with the price quoted, you can make an upfront payment. You can get your car insurance policy within a day, but the original insurance policy will either be e-mailed or delivered to your house address.
- Once you have renewed your car insurance, you can proceed to renew your road tax via MYEG, at a JPJ branch or Post Office
You can also renew your car insurance and road tax via MYEG. You can do so by calling 03 7801 8888 and you will be assisted. You need these information ready:
- Vehicle registration number and IC
- Type of vehicle
- CC – Engine capacity
- Year of manufacture
- Sum insured
- Windscreen (Optional)
You will then receive an email with the amount due for both insurance and road tax. If you are satisfied with the quoted amount, click the “Proceed to Pay” button. Your insurance will then be renewed for you and your road tax will be delivered the next working day. You can also use MYEG’s website but you will have to register and then sign in before proceeding.
What You Need To Know When Renewing Your Car Insurance
Over-insurance / Under-insurance
If you insure your vehicle at an amount lower than its current market value, this means that you will be considered self-insured for the difference that could arise in the event of accidents. So, in the event of loss or damage to your car, you will only be partially compensated up to the amount you insured your car for.
But, on the other hand, if you insured your vehicle at a higher amount than its current worth, the maximum compensation you will receive is the actual market value of the vehicle and not the amount you insured it for. This is because as the policy owner, you cannot ‘profit’ from a motor insurance claim. So how can you make sure you don’t over-insure or under-insure your car? You need to know the market price of your car, read the next point below to understand it better.
Market Price Of Your Car
When renewing your car insurance, you need to know the current market price of your car. It won’t be the same price as when you bought it as your car will depreciate every year. One of the quickest ways to determine the current value of your car is by using MyCarInfo. It’s a free portal where you can check the current market value of your car and receive a sample report. If you want a more detailed valuation report, you can pay for one from RM6.36. You will need to know the year your car was manufactured to get an estimate of its market value.
Do take note that you will never have an accurate car market value, as different insurance providers or financial institutions will have different calculations, hence a different valuation price. Therefore, market price given for your car is just a guideline. Remember, the condition of your car will also impact its market value. Do a few checks when trying to determine the market price of your car. You can get the estimate market value of your car from your current car insurance provider.
Knowing the market value of your car is important because you will need to know the amount when renewing your car insurance as it will help you to avoid under-insuring or over-insuring your car.
Check your No Claim Discount (NCD)
This is an important part of your car insurance renewal. NCD entitles you to a discount when renewing your car insurance if you have not made any claims from your insurance. This means if you have made any claims from your insurance within 12 months of the coverage, you lose your NCD entitlement. In such situation, you won’t get any discount for the premium of your car insurance upon renewal.
But it’s important to understand that you only lose your NCD entitlement if you make a claim when you are involved in an accident, and it was you fault. This means the other party will claim against you. But in the event of an accident where you were not at fault, you can claim from your own insurance for repairs yet you will not lose your NCD entitlement.
The discount given for NCD is based on a fixed rate that has been provided by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff.
| Coverage duration | Discount |
1st Year | 25% |
2nd Year | 30% |
3rd Year | 38.3% |
4th Year | 45% |
5th Year | 55% |
In case you have renewed your car insurance without taking into account of your NCD entitlement, make sure to inform your insurance agent or provider so you can apply for your NCD and then have the excess payment refunded back to you. Usually you will receive a check for the amount refunded.
You can change your insurance provider
Finally, do know that you have the option of changing your car insurance provider. You do not have to settle for the same insurance provider. If you decide to use a different insurance provider when renewing for your insurance, you can do so. Remember, as a consumer you have the power to choose and make the final decision. Go to various auto-car insurance to get a quote, then compare the quoted insurance premium before making a decision. Sometimes, you get to save money when insurance providers offer rebates.
See also: Why De-Tariffication Will Make Your Car Insurance More Expensive
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