What does your motor insurance cover in Malaysia?
The criteria for choosing the correct motor insurance should be similar to selecting your motor vehicle. It needs to fit our lifestyle and be within budget. Below are 3 types of insurances in Malaysia:
With car insurance
From the table above, we can know that most of the people buy “Comprehensive” type insurance. So, we will assume the insured having “Comprehensive” type insurance for the following example.
For your information, Non-Claim Discount is a discount given to the policyholders upon renewal of their motor insurance if no claim is made or arises from the policy for a continuous coverage of 12 months. The discount given is based on a fixed rate provided by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff.
*Do take note that when you are buying car insurance, make sure that you are not under insured. In other words, You need to insure your vehicle based on the market value of your vehicle at the time of renewal or commencement of your motor policy. This value is also called the sum insured of your vehicle in your motor policy.
If you are under insured, average clause will be applied whenever your vehicle is under insured (insured for a sum less than its market value) at the time of any loss or damage. You shall bear the difference and the rateable proportion of the loss when the market value of your vehicle at the time of loss exceeds the insured value by 10%.
Hence, you are responsible to ensure that your car is not under insured.
Having said that, car insurance is not only important but compulsory in Malaysia. So do a little research when purchasing your insurance every year. To find out more about Insurance and how you can save have a read of our article Which insurance you dont really need