Your Ultimate Guide to Comprehensive Car Insurance
If you’re not sure, don’t be shy about it! It’s totally normal.
What is Comprehensive Car Insurance?
Here it is – comprehensive car insurance is a type of insurance plan that provides cover for your car as well as a third-party. The plan is designed to provide compensation in case your car gets stolen or damaged by fire or accidents. It also compensates the third-party for death and bodily injuries as well as losses or damage to their property.
If you are wondering who the ‘third-party’ is, well that’s anyone else other than you, it could be the other driver or even a pedestrian that gets injured by your car. The second party is the insurance provider or Takaful operator.
Do bear in mind that this type of car insurance plan does not cover you for death or bodily injuries. For that type of compensation, you might need Personal Accident insurance, a life policy or apt health plans that apply.
In addition, comprehensive car insurance plans do not compensate drivers if an accident takes place during the course of a commercial situation either.
For example, if you used your car to ‘Grab’ a passenger and your car happens to be involved in an accident while in transit, then your policy is unlikely to cover you, unless otherwise stated. Comprehensive car insurance plans also typically do not compensate for personal items like a wallet or laptop, if it was left in the car during the course of a burglary.
Why should I choose comprehensive insurance cover for my car?
With a comprehensive car insurance plan (in contrast with Motor Third Party), you can claim from your insurer for accidents – regardless of whether you were at fault or not. This is especially useful if the cost of ensuing repairs comes up to a huge sum – notwithstanding your NCD rate.
Comprehensive cover will also come into play when one can’t trace or prove fault if an unfortunate event takes place.
For example, if you discovered that your side mirror was completely smashed after retrieving your car at the end of the day. Not only would it be difficult to find the culprit of the incident, imagine the frustration of needing to deal with the accident claims in the aftermath as well!
In this situation, you’ll need to foot the repair bill yourself if you were not covered by a comprehensive insurance plan. Let’s not delve into more depressing scenarios where your car ends up being a total write-off!
Just remember that comprehensive car insurance cover offers you the fullest and highest protection available amongst the plans available in Malaysia. It’s a great feeling to head out for a drive, confident that you are well covered!
Comprehensive car insurance is not necessarily cheap, but it does offer some peace of mind to car owners. Malaysian roads are also known to be highly susceptible to road accidents – did you know that more than half a million accidents were reported in 2016 alone?
If you take a moment to break down how much you spend on your comprehensive car insurance over an entire year, you’ll realise that it might just be a small price to pay. Ready to get your car back on the road? Hit up the link below right now.
What extra cover should I get with my comprehensive car insurance plan?
Being a comprehensive package, one might have the idea that ‘everything’ is included. But this depends on the insurance plan and provider you subscribe to. Most may offer free towing, roadside emergency assistance, concierge services and cover for legal fees, but not all do.
On the other hand, add-ons are charged separately and are not included in a comprehensive plan.
Typical chargeable add-ons include a cover for windscreen damage as well as for losses or damage to your car due to floods, typhoon, landslides, strikes, riots and commotions. So unless, you plan to buy these add-ons, don’t just assume that it’s all covered.
Now with motor detariffication, which means the (phased) end of fixed premiums set by the government for certain car insurance plans, insurance companies will be coming up with new offers. So, do keep an eye out for special extras that may be offered with these new plans.
Just as importantly, are you familiar - or even intimidated - by the car insurance jargon that you see? Fret not, here's a quick refresher on the confusing terms that you might come across.
So, what other types of car insurance plans are available?
There are two more types of car insurance plan available, basic Motor Third Party and Motor Third Party, Fire and Theft. Now from the names of these plans you can probably guess what it covers, but don’t – we’ll tell you.
Motor Third Party only covers the third party in case of death, injury and property losses. This insurance type is still being tariffed for certain car classes. The Motor Third Party, Fire and Theft policy is similar to the basic plan but it extends to provide compensation for fire and theft of your car as well. This plan is being detariffed alongside motor comprehensive plans.
| See also: How to Pay Less for Your Car Insurance |
Is comprehensive car insurance more expensive?
On average, comprehensive car insurance plans are more expensive than Third Party and Third Party, Fire and Theft plan.
However, the comprehensive plan, while costing slightly more, could also provide better value for money in the long run. For instance, if you meet an accident and your car gets damaged, the extra Ringgits you paid for a comprehensive plan will seem like nothing compared to the amount you’ll have to pay to get your car fixed.
Also, do consider that the complimentary extras mentioned above like free tows and emergency assistance should make up for the higher premiums of comprehensive car insurance.
How do I keep my comprehensive insurance cost down – how can I save?
You might be thinking, am I at the complete mercy of car insurers when it comes to stumping up my hard-earned money to renew my car insurance? There are a few ways to make sure that you get to enjoy cheaper premiums in the market.
Car insurance prices are based on a variety of categories – most commonly, you’ll notice that engine size is one of the main components of consideration. For instance, what you’ll pay for a Perodua Kelisa will be significantly lower than a BMW 7-series; less powerful cars are cheaper to insure.
It’s a question of owning the right car that suits your needs. If you have little purpose to own a seven-seater, perhaps a fuel-economic sedan might be a better option. Furthermore, petrol prices are currently floated and Malaysians can’t expect to enjoy cheap fuel all the time.
As a car owner, you can also exercise a number of measures to bring down your premiums. Keeping your vehicle safe by parking it only at secured places can help reduce your exposure to car theft incidents. When you fill up your car insurance renewal form, you will also be asked if your vehicle is equipped with any anti-theft devices, and this plays a part in your car insurance premium quotation too.
There are now many insurers in the Malaysian market who encourages safe driving behaviours – and will reward you along the way as well. AXA SmartDrive Enhanced will provide you with a discount of up to 20% off your comprehensive car insurance renewal via the use of a telematics device.
Don’t forget to take advantage of your NCD as well. With a maximum of 55% accumulated, this translates to very hefty savings when you renew your comprehensive car insurance the following year.
So, should I get third-party or comprehensive car insurance?
This depends on your affordability, first and foremost.
You should always get the best plan that falls within your budget. What’s interesting with comprehensive insurance plans, thanks to detariffication, is that you are likely to see many more types of plans on offer that cater to your needs.
Thus, comprehensive plans can be a lot more valuable if it can offer protection for risks that you are concerned with. For instance, there are special ‘women-only’ insurance plans that provide extra benefits for female drivers like compensation for snatch thefts from car windows, a free ride home and swifter claims.
However, at the end of the day, the decision is yours. You should stick with a plan that can provide the best value for money and at the same time, gives you the most peace of mind.
How do I purchase comprehensive car insurance?
There are many ways to purchase a comprehensive car insurance plan – you can buy direct from an insurance company, through a third party, a bank or from an insurance agent. But the ‘beary’ best way to buy is online.
This is because buying online often saves you money in commissions charged by agents and other sellers. One can easily enjoy a savings of at least 10% by buying it direct!
Moreover, buying online puts you in the driver’s seat; you can buy insurance at any time (not just during office hours) and get multiple quotes quickly without obligation to buy if you aren’t satisfied.
Better still, if you are using a handy comparison page like ours, you’ll have the added opportunity to thoroughly research a plan and read reviews. All these advances improve your chances of saving money and getting a plan that makes the best sense for your driving needs!