What is Car Insurance?
Car insurance is a contract between an individual with the insurance company used to protect the individual against financial loss due to accident or theft.
Some questions to ask before getting a car insurance:
#1 Why should I get a car insurance?
According to the report form Traffic Enforcement Director, Malaysia has recorded more than 280,000 of road accidents over the past year. Car accident is happening around all of us every day without any notice. Therefore, the reason why you need a car insurance is to ensure the ability to claim for compensation if you got injured or damages your car during car accident. Besides, car insurance also acts as a guarantee for the third party if you injure them in a car accident.
#2 What are the types of car insurance?
There are many different types of car insurance offered in the market. However, it's important to know the difference between different policies offered by the 3 main categories of car insurance, before you decide on purchasing any car insurance.
First, the third party insurance is most commonly purchased as it provides coverage for the third party that is involved in any car accident. The third party car insurance is compulsory for all the drivers and car owners in Malaysia before renewing their road tax. The second car insurance category is the third party, fire and theft car insurance. It provides additional protection for the car when it got stolen or caught fire. Lastly, the comprehensive cover car insurance offers the widest coverage. It covers everything mentioned in the first 2 categories, while covering the damage to own vehicle due to an accident as well.
Make sure to purchase the correct car insurance that fits your need.
#3 How long is the Coverage Period?
In general, the car insurance is effective from the time of purchase or during the agreed time period of commencement. Normally, car insurance provides a minimum coverage period of 12 months (1 year). You may also request for extension from the car insurer if the car insurance is going to expired soon. However, do take note that the car extension can only be done with the existing insurance company, or you may purchase a new car insurance from any other insurance companies as well.
#4 How can I purchase a Car Insurance?
Once you have decided on which type of car insurance to purchase, then you may consider to purchase the insurance from an agent, online or directly from insurance company.
If you don’t have much time to check out all the car insurance policies, you may go through an insurance agent as they will take care of all the documentations, providing consultations on the plan selection and in charge of renewing your road tax as well.
Besides, you may also compare the car insurance plans from different sites through online. This is the easiest and cost-effective way to get your car insurance quoted and renewed. Moreover, some of the insurance companies such as Takaful operators offer direct purchase option through their website, phone and also outlets. The key point is that you will have to get all the required documents prepared and visit the service counter for processing purpose.