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Choosing the Best Car Insurance 101

Key Points

  1. Deciding on the coverage needed is vital.
  2. It would be best to choose a reliable car insurance company.
  3. Ask around and get referrals!
  4. Make sure the coverage is equal to the price you pay.

Most people probably don’t think about car insurance until they need it since finding one can seem daunting. There are different types of car insurance, and not all of them are created equal. So how do you choose the right one for you? This post will help you figure out how to choose the right policy for you and your car. So read on to learn more!

1. Decide on the coverage needed

When it comes to insurance, there is no one-size-fits-all solution. The type of coverage you need will depend on several factors, including the sum insured (depending on the market value of your car) and the amount of risk you are willing to assume. First, consider what kind of coverage you need. There are 3 types of car insurance: comprehensive, third-party, and third-party, fire, and theft. Then, assess your needs by reading the explanations below.

Types of car insurance

  • Comprehensive
  • Comprehensive car insurance is definitely the way to go if you’re looking for complete protection for your vehicle. While it may be more expensive than other types of insurance, the extra costs are worth it in terms of coverage. Not only does comprehensive insurance cover any damages to your car that are caused by things like fire, theft, or “other than collision” damages, but it also provides liability coverage in case you cause an accident and injure others or damage their property.

    In fact, for just a fraction of the cost of repairing or replacing your car, you can easily maintain affordable coverage to keep yourself always protected. So, if you’re serious about protecting your vehicle and your finances, don’t hesitate to invest in comprehensive insurance – it will more than pay off in the long run!

  • Third-party, fire, and theft
  • Have you ever heard of third-party, fire, and theft car insurance? It’s a type of car insurance that covers damage to other people’s cars if you cause an accident. However, it doesn’t cover damage to your car or any injuries to you or your passengers. Fire and theft cover damages to other people’s cars and damage to your car if stolen or caught on fire. This insurance is cheaper than comprehensive insurance but has better coverage than third-party insurance.

  • Third-party
  • While comprehensive insurance also covers the damage to your vehicle, third-party insurance will only cover damages to another person or vehicle in an accident. This type of car insurance is perfect for those who are only looking to protect themselves against third-party claims and/ or only want the most essential coverage. It is usually cheaper than the other two car insurance.

Differences between the types of car insurance

Since there are 3 types of car insurance, what are the differences between them? Here’s a quick breakdown of each type:

Coverage Types of car insurance
Comprehensive Third-party, fire, and theft Third-party
Bodily injury to third-party
Yes
Yes
Yes
Theft, attempted theft, and fire
Yes
Yes
Damage to third-party’s property
Yes
Yes
Yes
Damage to your car due to accident
Yes

Add-on coverage

Adding add-on coverage to your basic car insurance is a great way to give yourself some extra peace of mind on the road. These optional add-ons, typically sold in conjunction with your basic car insurance, provide additional benefits that can help you deal with unexpected incidents. Some of the most popular add-ons include:

  • Coverage for natural disasters (special perils)
  • Coverage for a strike, riot, and civil commotion (SRCC)
  • Coverage for windscreen (damage)
  • Coverage for child car seat (damage and theft)
  • Coverage for smart key (damage and theft)
  • Coverage for car accessories
  • Coverage for betterment (new spare parts and repaint)
  • Coverage for the Legal Liability to and of Passengers (LLTP)
  • Coverage for the Legal Liability of a Passenger (LLOP)
  • Cash rebate for driving less
  • Compensation for Loss of Use (CLU)
  • Compensation for Assessed Repair Time (CART)

Click here for the common terms for car insurance.

While third-party insurance is usually much cheaper than comprehensive insurance, evaluating your coverage needs before selecting a policy is essential. That way, you can be sure to choose the right car insurance policy for you.

Related: What is Comprehensive Car Insurance? Who Should Buy It?

2. Always go for a reliable car insurance company

The first thing to consider when choosing an insurance company is whether you can trust them with your money. So, it is essential that you find one that offers competitive rates and demonstrates a strong track record of reliability and security. After all, your choice will play a crucial role in securing your own and your family’s financial future – so choose wisely!

Claiming process

Claiming from an insurer should be a seamless process – after all, that’s what you’re paying them for. Unfortunately, it’s often anything but. Dealing with a claims process can be a nightmare, whether it’s being bounced around different departments, being put on hold for hours, or being asked for the same information multiple times. And that’s before you even get to the part where they try to weasel out of actually having to pay out. That’s why, when choosing an insurer, it’s essential to make sure that their claims process is smooth and reliable. After all, the last thing you want is to find yourself in the middle of a nightmare scenario when you’re already dealing with the aftermath of an accident.

Accessibility

Accessibility is key when finding a reliable insurer. There’s nothing worse than dealing with a complex renewal process when trying to insure your car. You want to quickly and easily get the coverage you need without all the hassle. That’s why the most important thing to look for in an insurer is accessibility. You want an insurer with an easy renewal and application process to get the coverage you need without all the headaches.

Plus, an accessible insurer is more likely to respond to your needs and concerns. A good insurer should be responsive and easy to always get in touch with, offering quick and easy access via phone, email, live chat, or social media channels. Only by choosing an insurer who prioritises customer service can you ensure that your needs will be met and any issues addressed quickly and efficiently. The last thing you want is to be left in the dark when you need help the most.

Value-added services

When choosing an insurer, it’s essential to consider the value-added services that can save you time and money. For example, many insurers now offer online portals where you can view your policy documents, make payments, and file claims. Some even offer mobile apps that allow you to access your account information on the go. Other value-added services include 24/7 customer support and tow truck service, and the flexibility to customise your policy. So, when you’re comparing insurers, be sure to consider the additional services they offer and whether those services are a good fit for your needs. By finding an insurer with good value-added services, you’ll be sure to get the most out of your policy.

Vast network of panel workshops

If you’re looking for an insurance company that truly has your best interests at heart, look no further than companies that partner with a wide range of reputable panel workshops to make sure you can quickly get your car fixed when you need it most. Whether you’ve run into trouble on the road or have been involved in a fender-bender, the panel workshops will have you back up and running in no time. So, if you’re looking for peace of mind knowing that your car is in good hands, look no further than this type of insurer.

Various payment methods

As any savvy consumer knows, choosing an insurer with access to a wide range of payment options to suit the needs of their customers is a great idea. Whether you prefer to pay with debit/ credit card, cash, cheque, online transfer, e-wallets, or a variety of other methods, there’s a good chance that your ideal insurer has a payment option that works for you.

3. Referrals

Finding a good insurance company can be like finding a needle in a haystack. If you’re looking for a good insurance company, the best place to start is by asking around and getting some recommendations from your friends, family, and colleagues. Chances are, they’ve had first-hand experience with the company and can give you an honest opinion. Once you’ve narrowed down your options, read the online reviews from reliable websites. After all, there’s no better way to find out if an insurance company is good than to hear it from someone who’s actually used their services. And if you’re still not sure, then why not talk to an agent and ask for a free quote? That way, you can get an idea of what they would charge you without committing to anything.

4. Price

When it comes to finding an insurance plan that fits your needs, it can be tough to strike the right balance. You want to find an insurer that offers affordable premiums without compromising coverage. And let’s be honest, we all want to save a little money. But sometimes, it feels like you’re stuck between a rock and a hard place. On one hand, you have the significant insurers that charge sky-high prices for basic coverage.
On the other hand, you have very cheap insurance plans that often come with exclusions and deductibles that can leave you high and dry when you need to make a claim. So how do you find the sweet spot? The key is to do your research and shop around. The ideal insurer will offer various coverage options, so you can pick and choose the protection you need!

What affects your premium?

  • Type of car insurance
  • Market value of the car
  • Age of car (new vs old)
  • Type of car (luxury vs exotic vs performance vs collector)
  • Location (Peninsular Malaysia vs Sabah and Sarawak)
  • Driving record
  • Occupation
  • No-Claim Discount
  • Deductible

Compare different plans and make sure you understand what’s covered before deciding. With a bit of effort, you’ll be able to find an insurer that gives you the coverage you need without breaking the bank. Remember, don’t just go for the cheapest option – go for the one that will provide you with the most peace of mind.

Verdict

With a bit of research, you can find an insurer that ticks all of these boxes – and that’s worth its weight in gold. Consider all of the factors we’ve discussed and ask around for recommendations. Once you have a list of potential insurers, compare rates and read reviews before deciding. Picking the right insurance can be tricky, but it’s worth it to have peace of mind knowing you are fully protected in case of an accident. After all, your insurer is a crucial part of your safety net – so it’s absolutely essential that you can trust them with your needs.

To avoid the hassle of finding the best car insurance that will fit your needs and budget, just buy your car insurance with us! It only takes 3 steps, 5 minutes, RM0, and you’ll be insured!

Related: Best Car Insurance Company in Malaysia | Car Insurer: Should I Stay or Switch?

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