Every Malaysian driver is required to have third-party car insurance, and if you are involved in an accident with someone else, your insurance coverage will help offset all of their costs. However, since third-party insurance is intended to be inexpensive, you cannot make a claim for loss caused by damage to both your car and oneself. Whether you use a car or motorcycle, you should always buy all protection rider insurance policy malaysia.
It’s the law
In Malaysia, having car insurance is a statutory necessity if you plan to drive on the roads. Remember that driving without a legitimate insurance policy can result in your license being suspended or even seized. Meantime, insurance is mandatory to renew road tax, and a car owner must renew both insurance and road tax before the expiration date. The law in Malaysia states that if you are caught driving without a road tax, you may face a fine. As a result, getting a car insurance policy is preferable to being bankrupted by pricey financial penalties that will cost you much more than paying for a policy for car insurance
Essentially, having third-party car insurance can help you make a claim and compensate the party involved in the road accident for his or her injuries and any physical damage done. Since the cost of carrying the damage can be quite high at times, third-party insurance coverage is strongly advised. Comprehensive car insurance, on the other hand, is what you need if you intend to protect yourself as well as third parties since it provides the most financial protection. Comprehensive car insurance covers accidents, fire, and theft. If an incident happens involving your car and the person you hit, the insurer will also bear the burden.
Not only that, but you’ll need insurance that covers all of your vehicle’s parts and components, as some components can incur more than the car itself. This includes the engine, transmission, battery, and everything in the engine compartment. Due to government policy, spare parts in Malaysia are quite expensive and can effortlessly exceed the budget if something goes wrong with your ride. When the bodywork fails, such as dents or scratches, the coat alone can deplete your wallet. Imagine dealing with all of these repair work in one go if you do not have car insurance.
No worries if you have multiple vehicles
The Road Transport Act holds all drivers accountable, regardless if they are using other people’s cars or not. That’s why many insurance carriers offer additional driver coverage as an aspect of your existing car insurance package, which means buying one policy but insuring two or three vehicles rather than buying them separately. There are some limitations, so always peruse the terms and conditions.
No claim discount (NCD)
If you do own car insurance, you would be eligible for the NCD discount. If you don’t make claims on your insurance policy annually, you will be given a No Claim Discount (NCD) as a reward for being a good driver. The greater the discount, shows that you drive carefully on the road. In Malaysia, the NCD discount typically ranges from 25% to 55% of the premium payable, and you must have a claim-free history for the previous 12 months to qualify.