Getting insurance, maintaining it, and renewing the policy as to when due is standard practice for vehicle owners. Yet, it’s safe to say that many drivers don’t really know much about auto insurance beyond the basics.
What Exactly Is Car Insurance?
How does it work? Find out all that and more right here! Hi there! I’m Stella, Fincrew brand ambassador, and I’ll be your host on all things auto insurance in Malaysia! Today, I’ll be giving you a basic rundown of everything involving car insurance, from what it is to the different types available to you. Understanding auto insurance is the first step towards ensuring you get the most value for every ringgit. The Insurance360 Video Series by Fincrew breaks down all you need to know about your vehicle coverage! So make sure you don’t miss another episode! Click the Subscribe button and enable notifications now! Essentially, an auto insurance policy is a written contract between you and your insurer that protects you from incurring financial loss should your vehicle suffer damage or any incident of theft. In turn, you are expected to pay what is called a Premium. Keep in mind that the extent to which your insurance company offers you coverage is dependent on what type of coverage plan you take out with them. In Malaysia, there are essentially three types of car insurance. There is the;
According to driving regulations in the country, you must have an auto insurance policy before putting your car on the road. This is the least possible coverage you can take out on your vehicle. It also happens to be the cheapest. However, its scope of coverage is minimal as you are only insured for damages to the other individuals’ person, property, and vehicle, nothing more.
Third-Party, Fire and Theft Coverage
This is an improvement on the Third-Party basic coverage for drivers willing to spend a little more. It’s worth mentioning that procuring this policy is strictly by preference. Some perks of doing so include the fact that you’re insured against financial losses if your automobile is damaged by fire or theft. However, you’re not insured for repairs to your vehicle should it be damaged in an accident.
This is the most extensive and expensive policy you can take out on your vehicle today. Not only are you fully financially covered in the event of damage to a Third Party’s vehicle or property, but you also won’t have to pay out-of-pocket should your car be damaged by fire or theft. You are also insured for repairs if your car gets damaged due to a collision, provided you weren’t the at-fault party. To claim a payout, you need to make sure you first file a police report within 24 hours of the accident. Next, shift your vehicle to either the panel workshop of your insurer’s or that of the driver at fault, depending on the nature of the accident. You’ll then need to employ the services of an Independent Licensed Adjuster to help you assess things like the cost of the damages and what compensation would be appropriate for covering the length of time you would be without a vehicle.
Then, as appropriate, you would need to tender,
- An original copy of your police report,
- Your “Keputusan,” which is your Results report,
- A copy of your National Registration Identity Card and your driver’s license,
- Your car registration card,
- The adjuster’s report, your bill of repair costs, and photographic evidence of the damage.
And that’s all you need to know about auto insurance for now! Do you have any questions about Malaysia’s car insurance so far? Leave it in the comments section below, and we’ll get to it right away! Be sure to Like this video, Subscribe and set up notifications, so you get a ping when future episodes from this Insurance360 video series comes on! See you again!