If you are a beginner, car insurance policies might be complicated. You probably have all sorts of questions, and that includes whether you can insure someone else’s car. The short answer to that question would be no, but there are ways to be a part of someone else’s car insurance. We will explain everything in this article, so make sure to keep reading.
Why Can’t You Insure Someone Else’s Car?
Here is a simple explanation – you can only get insurance for things you have a personal insurable interest in. Now, the question arises – how would you have the interest to ensure someone else’s car? Let’s imagine a scenario – your friend purchases a vehicle, and you agree that you should be the one to acquire insurance for it. The deal might make sense to you, but what happens if there is an accident? Your friend’s car gets damaged, and you are the one who gets paid for that? That doesn’t sound logical, and the insurance companies won’t allow that. It doesn’t help if you have an official document saying that the vehicle owner agrees. Therefore, you can only get insurance on vehicles that you own. While we are on the topic, let’s mention that third-party insurance is mandatory by Malaysia’s law. It is the primary insurance you should have, and it covers any damage against third parties. That includes persons and properties outside of the deal signed by you and the insurance company. Here are some other insurance options you can use:
- Fire and theft – that type of insurance also includes third-party coverage. However, the extra option covers your vehicle if you aren’t responsible for causing a theft or fire. It can be a wise choice if you live in neighborhoods with high crime rates.
- A comprehensive coverage – a comprehensive policy will also include any damages that your vehicle suffered in the accident. Additionally, you can go with other benefits like a liability to a passenger, etc.
Depending on the insurance company, you might be entitled to other extras as part of your policy. The general rule is that the premium price will increase with every extra option you add to the deal.
Can You Add Others To Your Car’s Insurance?
You might be a parent who wants to pay for your child’s vehicle’s insurance, and that’s noble of you. However, that is not an insurable interest if the car is your child’s ownership. Fortunately, there is a way around it, and it makes more sense for parents and children. If you buy a vehicle for your kid, it might be smart to keep it in your ownership. After all, you don’t want them selling them without consulting with you. Now, as a vehicle owner, you can acquire a car insurance policy. That way, you will pay for the insurance since the vehicle will be in your name. The next step is to use the Named Driver option to add your child to the list of other people driving the car. Insurance companies in Malaysia allow adding another driver for free and four additional drivers at an MYR10 cost. That means you can add family members and friends to the policy. It ensures that anyone who drives the car is protected from compulsory excess. That excess involves paying MYR400 if you are an unnamed driver participating in the accident with someone else’s vehicle.