It might be time to renew your car insurance, or you are acquiring it for the first time. Perhaps the circumstances change in the meantime, but whatever happened, your current plans are to add an extra driver’s name to your car insurance. Here is everything that you should know about this process and what are its benefits.
Is It Legal To Add Another Driver To My Car Insurance Policy?
Yes, the Malaysian laws suggest that it is legal to add other drivers to your auto insurance policy. The key thing to note is that you will still be the owner of the document. As the car owner, you are the legal policy owner, too. That means that other drivers included in the policy don’t have any special rights.
Why Would You Need To Add Other Names To Your Auto Insurance Policy?
Although other drivers don’t enjoy special rights like claiming for damage, there is an important reason why you should consider adding their name(s) to your policy. If an accident occurs, and they are behind the wheel, there is no penalty that they (or you) have to pay when claiming the damage. Allow us to explain this by using an example. Let’s say that you borrowed your car to a friend. They needed it to run some errands around the city, but they participated in an accident. They weren’t guilty of the accident, which means the policy owner (you) has the right to file for a damage claim. However, if the driver behind the wheel isn’t included in the insurance policy, there will be an RM400 penalty. It is also called an unnamed driver excess, and that sum will be deducted from the damage you receive. If you file a claim for RM10,000, you can only get RM9,600 because a driver that wasn’t in the policy was driving at the time of the accident. That is the critical reason why you should consider adding an extra driver name to your policy.
Is Adding Additional Driver Name To Your Insurance Free?
Yes, most insurance agencies in Malaysia allow you to add additional driver‘s name for free. That is a benefit provided to families so that the policy owner doesn’t have to pay an extra fee to add a family member to the list of drivers. It is why a parent might decide to add their child, especially if the kid is often driving the vehicle. That is a common situation when a child goes to college. The car will still be in the parent’s ownership, but the kid will be allowed to drive it. It is possible to add other drivers’ names, too, with the maximum usually set at five people. However, only the first extra driver is included for free. You will need to pay a fee of RM10 for every additional driver you incorporate in the policy. If you consider that the unnamed driver excess is RM400, you realize that this can be a smart investment, too.
The best time for adding extra drivers is when you are renewing your insurance. The process is a bit more complicated after you receive the cover note. However, it is still possible to add new names to the driver list. Make sure to contact your insurance company to learn more about the details of the process and how to prepare the relevant documentation.