People often ask this question a lot- Is there any car insurance with unlimited coverage? This is a good question, and I will help answer it and explain the different car insurance packages you can go for. Every vehicle owner is required to purchase automobile insurance before the vehicle can be put on the road. Though there are certain circumstances when an insurance company can refuse to insure you because of several reasons.
Does Auto Insurance Come With Unlimited Coverage?
The simple answer is NO. Let me explain why–
Most insurance companies will not offer unlimited auto car insurance because they might not be able to fulfill it. Sounds ridiculous right, OK let’s think about this scenario. Imagine that the Military is transporting some thermonuclear warheads on a truck to bring them to a service point in a city. Now a driver that supposedly has “unlimited” auto insurance happens to be at the wrong place at the wrong moment and crashes the car against the truck carrying the thermonuclear warheads.
They fall off and explode. A whole city was destroyed. How serious do you think is the damage? Five, ten, twenty trillion dollars? Do you think there is an insurance company on earth that can balance a five, ten, twenty trillion dollar check? Maybe not. This is because the word “unlimited” stands for “without limits,” so irrespective of the damage caused, the company will be ready to cater to it. As such, insurance companies will not offer such coverage because they do not have unlimited funds. This might even be regarded as against the rules of fair competition and probably illegal. Of course, insurance companies can offer remarkably high coverage and different packages, but unlimited coverage might not seem right.
Which Auto Insurance Package can I go for?
Basically, in Malaysia, there are three types of auto insurance packages available-
- Third-party coverage,
- Third-party fire, and theft coverage,
- Comprehensive coverage.
A Third Party Cover is the least expensive among the three offered car insurance packages. It’s the most basic and insures you against any injuries or deaths caused to the third party (basically that’s everyone else aside from you and your insurance company) and loss or damage to the third party property caused by your vehicle. You should note that this policy doesn’t cover you for any damages to yourself or your car.
Third-Party, Fire and Theft Coverage
A Third-Party, Fire, and Theft policy is pricier than a Third Party Cover but cheaper than a Comprehensive Cover. Third-party fire and theft cover work just like a third-party cover. This policy protects you against claims by a third party, be it bodily injuries or death, but with the added coverage of damages from your vehicle’s fire and theft. It allows you to file for a claim if your car suffers fire damage or gets stolen.
The third package, Comprehensive Car Insurance, covers a broader range of protection. With a Comprehensive Cover, you get the same coverage as in a Third Party, Fire, and Theft policy, but it also covers damages done to your car. You should note that Comprehensive Cover is not for everyone, as this policy is only available to vehicles that have not exceeded a certain age.