Insurance is one of the essential things in your life that you’ll need. Its biggest benefit is that it could protect you and your loved ones, financially speaking.
It acts as your safety net should something happen to you. If you’re the breadwinner of your household, having insurance is definitely more important than ever.
Why the myths about purchasing motor insurance aren’t true
Despite insurance being handy in emergencies, many people avoid being insured due to confusion and several misconceptions surrounding insurance. If you are one of them, we’re debunking some myths for you now.
Thanks to the myths surrounding insurance, many people have missed out on the benefits it offers. Hopefully, we can convince you to change your mind about purchasing motor insurance by debunking these myths. Find out the top five myths about purchasing motor insurance and why they are not true:
1. Motor insurance is too expensive.
The amount of your insurance premium depends on what kind of motor insurance you’re getting, the add-ons you opted for, and things like your age and health condition. For motor insurance, insurers will calculate the premium rates based on risk factors such as age, gender (yes, sexism still rules, unfortunately), residence, claim history, and occupation.
If you’re worried about your limited budget and feel like it’s a hassle to look around for the right insurance, you can easily use a comprehensive online marketplace for insurance to seek advice, compare insurance and get free quotes instantly without the trouble of going from place to place.
2. Young and single people with no dependents don’t need insurance.
Life is unpredictable, and not to sound dramatic, but tragedies like accidental death, disability, or critical illnesses could befall anyone regardless of age. At least with the right motor insurance, rest assured that you’ll be protected financially.
3. There’s no need for insurance when the government has already offered healthcare initiatives and subsidies for Malaysians.
Yes, you’re only required to pay RM1 or RM5 if you go to a government clinic or hospital, but there may be other fees involved depending on your situation and health condition. And yes, there are already a few healthcare initiatives by the government like Peka B40, but not everyone is eligible. It always helps to have an extra cushion.
4. The company’s insurance is sufficient.
Sure, if you plan to work for the same company for the rest of your life. But then again, there’s a possibility of being retrenched. What are you going to do if you lose your job and need proper medical treatment, but it’s expensive, and your life savings are barely enough to cover you and your family?
Without insurance to back you up, you’re literally digging your own grave. Sorry if that sounds morbid, but it’s the truth that everyone should consider taking seriously. Relying solely on your company’s insurance is not sustainable in the long run.
Besides, most companies only provide health/medical coverage. If you commute to your office daily and are often out and about for work, it’s even more critical that you’re backed by motor insurance.
5. Your basic motor insurance is enough to cover you.
Also known as the Act cover, this is only a base coverage to correspond with the Road Transport Act 1987. It only involves legal liability for death or bodily injury to a third party (excluding passengers).
Motor insurance is compulsory for vehicle owners, be it a car or a motorbike. However, your basic motor insurance is not sufficient to cover you. Hence, it’s better to get additional coverage. There are three types of motor insurance to choose from, which are:
i. Comprehensive coverage
The most recommended coverage as it covers pretty much everything, in the event where there’s damage to your vehicle because of accident, loss or damage to your car due to theft or fire, damage to another party’s property, and injury or death to another party.
Also known as the first party policy, this coverage also offers optional benefits (subject to agreement), for example, Personal Accident and Medical Benefits for driver and/or passengers, windscreen breakage cover, or even coverage for damage to your vehicle caused by natural disasters or civil commotions like riots.
ii. Theft and third party fire coverage
Also known as the second party policy, this coverage protects your vehicle from the loss or damage caused by theft or fire, damage to another party’s property, and injury or death to another party.
iii. Third-party coverage
Also known as the third party policy, this coverage only covers damage to another party’s property and injury or death to another party.
Choosing the right insurance is very important, and finding the right type of insurance can be daunting due to so many options.
When in doubt, simply use online insurance aggregator like Fatberry to sort out the best insurance where you can compare and get free quotes instantly–all in less than 3 minutes!