Most of us would need a car for practically everything to run our day-to-day activities smoothly. However, your ride is going to be a bumpy one if you’re not protected with car insurance; which is one of the most important things all car owners need to have. Here’s a comprehensive guide for you to follow:
Written by: Dayana Sobri
Before we dive a little deeper, here’s an outline of the guide for your reading convenience:
- The importance of having car insurance
- What you should know about road tax in Malaysia
- Three major types of car insurance coverage
- What is the sum insured in car insurance coverage?
- The additional coverage of car insurance
- What you need to know about No Claim Discount (NCD)
- Comprehensive coverage of car insurance
- Other things car owners MUST know when looking for or buying the best car insurance
- 4 easy and fast ways to buy car insurance at the lowest price
- Enjoy additional special promos when you renew your car insurance on Fatberry’s platform!
The importance of having car insurance
You may think you are a careful driver and that you can simply get by safely without a hitch. However, accidents lurk in every corner, and no matter how good and safe of a driver you are, it’s hard to predict what’s going to happen. Hence why car insurance is important for your safety, not only physically but also financially.
Trust us when we say that your future self will thank you for it, should something bad happen to you (and we hope not). But it doesn’t hurt to be extra careful. At least with car insurance covering you if something unexpected occurs, rest assured that you and your family won’t be financially burdened as much. Undoubtedly, this is the part where the insurance company comes to your rescue and takes care of things to lessen your burden.
See Also: Best Car Insurance in Malaysia (2022)
What you should know about road tax in Malaysia
Although we’re talking about car insurance, it’s impossible not to mention the other important thing a car owner must have and be aware of, which is the road tax.
Road tax is compulsory for all vehicle owners, and if you don’t want any trouble with the authority, make sure you have a valid road tax issued by the Road Transport Department (JPJ).
The cost of your road tax may depend on a few factors, such as your car model, cubic capacity, and your location (West Malaysia or East Malaysia). To renew your road tax, you’ll also need to have insurance. Therefore, remember to renew your car insurance and road tax before they expire every year.
The best time for you to renew your car insurance and road tax is two months before the expiration date. Quickly check your dates and set up a reminder if you haven’t done so already. At Fatberry, we offer RM150 off car insurance!
Three major types of car insurance coverage
In Malaysia, there are three major types of car insurance coverage that you can choose from, depending on your needs and budget. You may go with the basic plan or expand it by choosing a few add-ons (this would make the premium higher the more you add on). Your choices include:
1. Comprehensive car insurance
Also known as first-party insurance, comprehensive car insurance provides the most comprehensive protection, as its name suggests. Not only you are going to be covered for road accidents, but also theft and fire.
In the case where you’re involved in an accident and something happened to your car and the other car involved, the insurer will cover the costs. This policy is best for cars under 10 years old.
2. Third-party, fire, and theft car insurance
In the case where your car gets stolen or is on fire, this type of car insurance will provide the necessary coverage. However, if an accident occurs where you’re at fault, you’ll bear the repair cost on your own. Meanwhile, the car that you hit will be covered. At least you won’t be too financially burdened.
3. Third-party car insurance
The most basic type of car insurance (and also the cheapest), this type only provides coverage for the third party involved in the car accident. Unfortunately, no protection whatsoever is going to be provided in the event of a fire, theft, or accident.
What is the sum insured in car insurance coverage?
Sum insured refers to the maximum amount a car can be insured based on the current market value. If you’re unsure of your car’s market value, you may find out about it on MyCarInfo. There are at least two factors that will determine the sum insured of car insurance:
Agreed value
Agreed value means the amount which has been agreed upon both by you (the car owner) and your insurance provider according to the car’s year and model. For example, if the amount insured is RM20,000 and an accident happens, the car insurance company will provide full compensation of RM20,000.
Market value
Market value simply means how much your car is worth before the damage occurs. For instance, if the amount insured for the car was RM45,000 but the market value for the car during the accident drops to RM40,000, the car insurance company will pay compensation depending on the market value (in this case, it’s RM40,000).
The additional coverage of car insurance
Remember that we had previously mentioned add-ons that you can choose? If any of your chosen car insurance plans are not satisfactory, there are several common additional coverages offered by many insurance and Takaful providers.
That said, each car insurance and Takaful provider may have different terms and conditions for each add-on, so read them carefully before you sign anything. These are some of the most common add-ons that you can get:
- Towing
- Personal Accident
- Passenger Coverage
- Civil Commotion, Riot, and Strike Coverage
- Natural Disasters (or Special Perils)
- All Drivers
- Named Driver
- Windscreen
What you need to know about No Claim Discount (NCD)
NCD, short for No Claim Discount, is the discount given to you if no claim has been made under your policy with the current insurance provider during the coverage year. Your NCD rate will also increase if no claim is made in the following year. The NCD rates for cars may vary as follows:
- 1st year – 0%
- 2nd year – 25%
- 3rd year – 30%
- 4th year – 38.33%
- 5th year – 45%
- 6th year and above – 55% (maximum)
If you managed to earn the NCD rate of 55% and then made a claim during the current year, your NCD rate will go back to 0% in the following year.
Comprehensive coverage of car insurance
Most car insurance companies offer a similar policy with different advantages and benefits or advantages. The following are just a few examples of the benefits and advantages offered by several insurance/takaful companies on FatBerry’s platform (please refer to each company’s product disclosure sheet for more information):
- FREE 24/7 towing up to 100km
- FREE coverage for all drivers
- FREE key care service up to rm500
- FREE 24/7 towing up to 100km
- FREE coverage for all drivers
- FREE key care service up to rm500
- FREE 24/7 towing up to 200km
- FREE coverage for all drivers
- CASHBACK if there are no claims
- FREE 24/7 towing up to 200km
- FREE up to 3 registered Name Drivers
- FREE jumpstart service
- FREE battery change service
- E-hailing coverage provided
- FREE 24/7 towing up to 200km
- FREE up to 3 registered Name Drivers
- FREE jumpstart service
- FREE battery change service
- E-hailing coverage provided
- FREE 24/7 towing up to 200km
- FREE 24/7 claim assistant
- FREE fuel delivery service
- FREE 24/7 towing up to 50km
- FREE coverage for all drivers
- CASHBACK up to 7.5% if there are no claims
- Nationwide workshop panel
- Complimentary PA coverage of RM15000 for each driver and passenger
- FREE 24/7 towing up to 200km
- FREE up to 3 registered Name Drivers
- CASHBACK if there are no claims
- E-hailing coverage provided
Allianz General Insurance Company (Malaysia) Berhad (Product Disclosure Sheet)
- FREE 24/7 towing up to 150km
- FREE coverage for second drivers
- FREE battery change service
- E-hailing coverage provided
- FREE 24-hour Emergency towing up to RM 300
- FREE 1 Additional Driver
- FREE 24-hour roadside assistance program
- FREE 24-hour claim assistance
- E-hailing coverage provided
Great Eastern General Insurance (Malaysia) Berhad (Product Disclosure Sheet)
- FREE 24-hour Emergency towing up to RM 300
- FREE 1 Additional Driver
- FREE 24-hour roadside assistance program
- FREE 24-hour claim assistance
- FREE 24-hour Emergency towing up to RM 300
- FREE 1 Additional Driver
- FREE 24-hour roadside assistance program
- FREE 24-hour claim assistance
Other things car owners MUST know when looking for or buying the best car insurance
How do insurance companies calculate car insurance premium rates in Malaysia?
As a car owner, you must know about the Malaysian detariffication of motor insurance (or the removal of tariffs). Before 2017, Bank Negara Malaysia was the one that controls the calculation method for motor insurance premiums.
Hence once the tariff was removed, insurance companies can now implement their ways for premium calculation. Risk-based pricing is often the method used to determine your premium rate. To determine the premium rate of your car insurance, these are the major factors that will be taken into account:
- The car’s safety features
- Driver’s Age
- Driver’s Occupation
- Driver’s Location
- Car Usage
- Driver’s Driving record
9 simple steps to submit a car insurance claim
Most people think it’s a daunting and tedious process to submit a claim for their car insurance, which is NOT true! For your convenience, we’ve broken down the nine simple steps to submit your car insurance claim:
1. Call your insurance company immediately after you’re involved in an accident.
2. Gather all of the evidence that you can find, and record important information such as:
- Time and place of the accident,
- Photos of the accident scene,
- Photos that prove damages to your car and other vehicles involved; and
- Exchange information with the other parties involved.
- File a police report within 24 hours and NO later than that.
3. Report to the car insurance company within 7 days of the accident and NO later than that.
4. Only send your car to the panel workshop of the insurance company.
5. Fill in the insurance company claim form.
6. Submit all forms required by your insurance provider.
7. Check with your insurance company regarding the repairs done by the panel workshop to avoid any conflict.
8. Sign the insurance company release form once you are satisfied with your car after the repair is done.
What if someone else drives my car and is involved in an accident? Can I still submit a claim?
In the event where your car is involved in an accident caused by someone else who drives your car, there will be extra charges on your claim.
However, if the said driver’s name has been added to your policy OR your car insurance policy covers all drivers who drive your car, you are allowed to submit a claim during your car insurance renewal.
Am I allowed to cancel my car insurance policy whenever I want?
Yes, you’re allowed to cancel your car insurance policy whenever you want. However, do take note that there may be penalties imposed if you canceled before the policy’s expiration date.
If my car is older than 15 years, am I allowed to renew my car insurance?
In most cases, the older your car the fewer the benefits and advantages offered. However, you can compare and customize your plan easily before you buy on Fatberry’s platform, so rest assured as there will be something for every driver!
What is the difference between comprehensive car insurance and third-party, fire and theft car insurance?
Here’s a simple comparison between the two:
Comprehensive Car Insurance
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Third-party, Fire and Theft Car Insurance
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The comprehensive car insurance covers mainly everything, not only the third party but also your vehicle.
Whatever vehicle-related loss or damages that you are facing, you will be covered.
However, this will also depend on your vehicle’s age, which means not every vehicle is eligible to be provided with this coverage.
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For third-party, fire, and theft car insurance, you will be covered for any claims made by a third party against you due to a road accident that results in vehicle damage, loss of property, bodily injuries, and death.
Plus, this coverage plan also covers your car for damages caused by fire or even grand theft auto.
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4 easy and fast ways to buy car insurance at the lowest price:
Not all car insurance plans are made equal, although they may be similar to each other! Here are four tips to get the best car insurance for you at the lowest price possible:
1. Avoid auto-renewals
First off, some car insurance companies will give you the option to auto-renew your car insurance. It’s advisable to avoid auto-renewals because the car insurance premium charged may not be the lowest rate on the market.
This is because insurance companies will update their car insurance premium from time to time, so you should compare the prices from various car insurance companies before you renew yours.
2. Renew your car insurance at least two months before it expires
Next, when your car insurance expires, some insurance companies will charge a higher premium rate. Therefore, it is best to renew your car insurance before it expires (preferably two months prior) to enjoy the lowest price possible.
3. Compare car insurance quotes as much as you can
When it comes to premium rates, there are different calculation methods that car insurance companies use. Depending on the condition of your car, and also the insurance companies, the rates can vary between 40 to 50 percent.
This is why we encourage you to compare car insurance quotes from a variety of car insurance companies as much as you can to find the best and lowest rate possible. By doing so, you’ll have the chance to save hundreds of Ringgit.
4. Check your car insurance coverage before you buy
Last but not least, you may want to use your car solely to commute for work. Or you need your car so you could drop off your kids at school before running a few errands. Or you want a car that can withstand the muddy roads for a long journey.
This shows just how each car on the market serves a different purpose, which is why you need to choose the most suitable car insurance plan based on your car and usage.
Since a few car insurance quotations may include coverage that may not be applicable for certain types of car and usage or have a higher sum insured than the actual market value; you should check the coverage of each of the car insurance plans to make sure you’re only paying for what you need.
Enjoy additional special promos when you renew your car insurance on FatBerry’s platform!
Renew your car insurance if you haven’t done so already. However, you can only renew your policy within two months before your policy expiry date. So hurry up!
Enjoy our current promo JOMRENEW and get RM150 off for car insurance! On the other hand, if your car insurance has not expired yet, don’t worry! Just click ‘CHOPE’ for your next renewal. In other words, you can reserve the promo first before the deal ends.
On the other hand, if you’re interested in earning some extra cash, refer your friends to our platform and earn RM10 when your friends renew their insurance with Fatberry! Check out our home page for more info!
*The content provided is for informational purposes only. FatBerry makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. Should you require more information on our products, please refer to fatberry.com or contact us.
