What comes to mind when you think about car insurance in Malaysia?
How many companies provide car insurance? What types of coverage are available? Where can you renew your insurance? Let’s simplify things. Whether you’re a first-time car owner or just need a quick refresher, here’s what you need to know about car insurance in Malaysia for 2025.
1. Types of Car Insurance in Malaysia
There are three main types of car insurance:
First, Third-Party Only: This is the most basic and legally required type. It covers damage to other people’s property and injuries to third parties. However, it doesn’t cover your own car or injuries.
Next, Third-Party, Fire & Theft: This includes everything Third-Party Only covers, but with added protection against fire damage and theft. It’s a good option if you want basic coverage with extra protection.
Finally, Comprehensive: This is the full package. It covers your car, injuries to others, and personal injuries. However, to keep your No Claims Discount (NCD), you should consider adding windscreen protection. Without it, a windscreen claim could affect your NCD, even under a comprehensive plan.
2. How Premiums Are Calculated
Car insurance premiums depend on several factors:
- First, the car’s value: Higher-value cars generally cost more to insure.
- Second, the vehicle type: Luxury or sports cars often have higher premiums.
- Next, your age and experience: Younger or less experienced drivers usually pay more.
- Then, the No Claims Discount (NCD): You can get a discount for every year you go without making a claim, up to 55% after five years.
- Lastly, your location: Cars in high-risk areas (for theft or accidents) may attract higher premiums.
3. Add-Ons to Consider
Standard policies are useful, but these add-ons provide extra protection:
- For example, Windscreen Coverage: This covers cracked or shattered windshields.
- Moreover, Flood Coverage: This is ideal for areas prone to floods or landslides.
- In addition, Special Perils: This covers natural disasters like floods or typhoons.
- Lastly, Personal Accident: This covers injuries or death for both the driver and passengers.
4. Simple Claims Process
If you need to file a claim, here’s the process:
- First, make a police report at the nearest station.
- Then, inform your insurer quickly to start the claim process.
- Afterward, submit all required documents, including the police report and photos.
- Next, your car will be assessed by an approved workshop.
- Finally, once approved, the repairs will be made.
5. Renewing Your Insurance
Renewing your car insurance is straightforward:
- First, check the market value of your car.
- Next, review your NCD percentage.
- Then, compare prices from different providers.
- Lastly, adjust your coverage based on your needs.
6. How to Get the Best Deal
- First and foremost, shop around for the best price.
- Moreover, utilize your NCD to get a better rate.
- Also, keep an eye out for discounts and promotions.
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Check your NCD here: NCD Check