Are you a car owner? If yes, then you must already know that you need car insurance every year, right? Wait up because we have selected the 5 best car insurance Malaysia just for you!
Every car owner in Malaysia must know that they need to renew their car insurance every year. The car insurance in Malaysia is annually, and upon the end of the insurance policy period, you would need to renew it.
In Malaysia, car insurance, or also referred to as motor insurance, is compulsory for every vehicle. All vehicles in Malaysia need to have insurance policy coverage in order for them to be on the road. There are a few types of car insurance in Malaysia, which have different types of coverage.
Types of Car Insurance in Malaysia
Before we go deeper into the best car insurance Malaysia, I think it is best to understand first the types of car insurance in Malaysia.
- Act Only Cover
Since car insurance in Malaysia is compulsory, and you need to have car insurance in order for you to use your car on the road, therefore this Act Only Cover is available as one of the car insurances options in the insurance market.
As a requirement stated in the Road Transport Act 1987, the Act Only Cover is only providing the minimum coverage that is as per the act stated. The coverage under this car insurance is only limited to legal liability for death or bodily injury of a third party, however excluding the passenger of the vehicle.
This type of coverage is hardly available in the market anymore.
- Third Party Cover
This type of coverage for car insurance is also on the minimum side. The Third Party Cover is only providing coverage for claims of bodily injury or death to a third party, as well as losses or damages to third party property caused by your car.
For example, when your car hits a building and causes damages to the building’s structure, the insurance policy is going to pay for the damages of the building, but not going to pay for the damages happening to your car.
- Third Party, Fire and Theft Cover
This type of car insurance is an extended version of the Third Party Cover. This is because the policy provides coverage to third party bodily injury and death, third party property losses and damages, as well as losses or damages to your own car that is caused by accidental fire, and to cover for theft too.
This type of car insurance is not going to cover the car’s own damage as a result of an accident.
- Comprehensive Cover
This is the widest coverage of a car policy, and perhaps the most common car insurance that is available in the insurance market. For cars that are still under the hire purchase contract with the bank, meaning that the owner is still paying for the car loan to the bank, the bank is usually going to put a standard requirement for those cars to have comprehensive insurance coverage.
The Comprehensive Cover offers the widest coverage of protection for your car. The protection and coverage are including third party bodily injury and death, third party property loss or damage, and loss or damage to your own vehicle due to accidental fire, theft, or accidents.
Now that you understand the different types of car insurance in Malaysia, you need to also know another important thing related to car insurance in Malaysia, that is the No Claim Bonus (NCB) or also Called the No Claim Discount (NCD).
No Claim Bonus (NCB) or No Claim Discount (NCD)
This is the type of discount that is offered to the policyholder upon renewing their car insurance policy. This is applicable for policyholders that do not lodge any claims during the policy period, or there is no third party that claims against your car insurance policy.
Meaning that throughout the entire 1-year period, if you do not make any insurance claims, whether for your own damage or from a third party, you can get a discount from the insurance company.
The NCB / NCD is accrual, meaning that it increases from year to year, and would reach its maximum after 5 years of no claims.
| Period Of No Claims Made | Percentage Of NCB For Private Car |
|---|---|
| 1st Year | 0% |
| 2nd Year | 25% |
| 3rd Year | 30% |
| 4th Year | 38.33% |
| 5th Year | 45% |
| After 5th Year | 55% |
Insurance policy and products in Malaysia are heavily regulated by the Bank Negara Malaysia (BNM), thus, the coverage and protection, as well as the premium payment are more or less the same. But what makes a car insurance product outstanding and different from other car insurance products is the benefits and features of the products offered by the insurance company.
This way, you can see that some insurance companies offer additional benefits for their car insurance policyholder, for example, extra towing services nationwide, or the convenience of making claims online.
What are the 5 best car insurances in Malaysia?
Thus, we have picked the 5 best car insurance Malaysia, and we believe our selections are considering the best features and benefits of a car insurance policy.
Tokio Marine introduces a comprehensive car insurance protection that provides coverage for your car, third party bodily injury, and death, as well as third party property damage u to an RM3million limit.
The basic coverage for your own car includes the following:
- Accidental collision or overturning
- Collision or overturning caused by mechanical breakdown or as a result of wear and tear
- Impact damage caused by falling objects provided no convulsion of nature is involved
- Fire, explosion, or lightning
- Breakage of windscreen, windows, or sunroof including lamination / tinting film
- Burglary, housebreaking, or theft
- Malicious act
- In transit (including its loading and unloading) by road, rail, inland waterway, direct sea route across the straits between the island of Penang and the mainland
What is making this product from Tokio Marine more interesting is the Optional Motor Add-On coverage, where it provides additional coverage against specific causes or peril.
For example, under optional coverage, you can opt to include the Special Perils Add-On, which provides coverage for flood, storm, tempest, or landslide. In Malaysia’s tropical weather, such coverage is necessary as the weather is unpredictable, and your car is always at risk to be damaged by natural causes.
You can also include the add-on of C.A.R.T., or known as the Compensation for Assessed Repair Time, which pays up to RM200.00 per day for car rental expenses in the event where your car is being repaired in the workshop. This is highly convenient because while your car is being repaired in the workshop after an accident, you still need a car to go about.
Tokio Marine is also providing additional coverage for 24 hours unlimited towing service and roadside assistance. This is one of the best additional coverages that can be included in the car insurance policy.
This product from Berjaya Sompo Insurance is one of the latest and newest car insurance products that you can purchase online via Berjaya Sompo’s webpage. The online purchase is providing convenience at its best, because you can renew your car insurance with just a few clicks, without having to leave the comfort of your home.
The coverage under the SOMPO MotorNow Car Insurance are as follows:
- Liabilities to the third party for injury, death & property loss, or damage
- Loss or damage to own vehicle due to accidental fire and theft
- Loss or damage to own vehicle due to accident
- Coverage for all drivers
- Repairs warranty of 6 months against defects on new parts replaced and workmanship carried out by our Panel of Repairers
- Liabilities to driver and passengers of own vehicle (property, bodily injury, death)
And as the policyholder for the SOMPO MotorNow Car Insurance policy, you are also entitled to include add-on coverage on top of the existing coverage. One of the interesting add-on coverage is the waiver of the betterment for vehicles age up to 15 years.
The add-on coverage can also be extended to cover private hire cars, which is for the vehicle used for e-hailing services like Grab car. This way, you can turn your vehicle into an e-hailing vehicle and make extra money, while still having insurance protection.
Berjaya Sompo is also covering add-on unlimited towing costs, where you can use their towing services at any time and anywhere you are.
So, what are you waiting for? It’s time to change to Berjaya Sompo with SOMPO MotorNow today because, with every renewal of car insurance, you can get an additional 10% rebate and RM150.00 worth of TnG eWallet. This campaign ends on 31st Dec 2021.
This is a Takaful Car Insurance, that provides Shariah compliance car protection and coverage. But you do not have to worry, because the protection and coverage are not far different from conventional Car Insurance.
This Car Takaful by Etiqa General Takaful is available for purchase online, with an additional feature of 0% interest installment plans for Maybank credit cardholders. This provides high convenience for the policyholder, as you can spread the premium payment into several installments and get financial relief from paying it in one go.
The basic coverage of Comprehensive Private Car Takaful includes the following:
- Third party bodily injury and death
- Third party property loss or damage
- Loss or damage to your own vehicle due to accidental fire, theft, or accident
And on top of the basic coverage under this Car Takaful, you are also entitled to other benefits like a 10% instant rebate, all authorized driver benefits, and 24-hour Emergency Road Assistance.
Another interesting benefit under this Car Takaful is the Agreed Value reimbursement, where in the event of a claim due to loss or damage of your vehicle, you are entitled to reimbursement according to the agreed value.
Etiqa General Takaful is also introducing a Cash Relief add on, where you are entitled to cash pay-out for events like repairing or replacing the child’s car seat that has been damaged due to accident, flood, fire, or theft of your car. The cash relief is also applicable for car keys replacement, where you can get cash of up to RM3,000 to replace lost, stolen, or damaged car smart keys.
The Comprehensive Private Car Takaful by Etiqa General Takaful is also inclusive of no claims excess, which is applicable for drivers above 21 years old.
MSIG Insurance Malaysia introduces a car insurance policy that provides comprehensive coverage for your car. This car insurance policy provides protection and coverage against third party liability for injury or death, and damage to third parties’ property, as well as accidental or fire damage to your car or theft of your car.
And on top of the basic coverage, MSIG Insurance offers a wider extension of protection for the policyholder.
The add-on benefits includes:
- Driver’s Personal Accident
- Full Special Perils
- Legal Liability to Passengers
- Legal Liability of Passengers
- Waiver of Compulsory Excess
- Strike, Riot, and Civil Commotion
- 24-Hour Unlimited Towing Service
- Windscreen Coverage
- Current Year “NCD” Relief
- Compensation for Assessed Repair Time (CART)
- Smart Key Shield
Let us go through the interesting and amazing benefits of MSIG Insurance. For instance, the waiver of compulsory excess allows you to get 0% excess for your car insurance coverage. Excess refers to the amount you have to bear on your own in the event of loss or damages. For instance, a 1% excess or equal to let say RM200.00, would mean that you have to pay the first RM200.00 of the damages that you suffered, while the rest is payable by the insurance company.
Another amazing benefit of the car insurance policy is the 24-hour unlimited towing service, along with the super-duper helpful MSIG Call Centre. The team from MSIG Insurance is very helpful and would provide your assistance from A to Z in the event of car accidents or breakdowns. This way, you have the freedom to drive your car in a worry-free mind, because you know that anything happens, you are well covered and protected by MSIG Insurance.
So, this is the time to switch to MSIG Insurance and renew your Car Insurance with MSIG Motor Plus.
Allianz General Insurance is a well-known insurance provider that has a good reputation for excellent quality insurance products and provides one of the best services to their clients. And now they are introducing the Motor Comprehensive Insurance policy.
This Car Insurance provides the basic coverage consisting of the following:
- Losses or damages to your car due to accident, fire, and theft
- Third Party death and bodily injuries
- Third Party property losses or damages
- Extended benefits
The extended benefits under this insurance policy include special perils coverage. The special peril, or can also be referred to as special causes, provides protection for your car in the events of flood, windstorm, landslide, or subsidence. As we are living in a tropical weather country, these extra coverages are highly important, as the weather can be very uncertain. Flood coverage is also important, especially if you are living in a flood-prone area like certain areas in the Klang Valley, or the East Coast.
Another amazing benefit from Allianz is the Allianz Road Rangers, which is known for being highly efficient in providing roadside assistance to car insurance policyholders. The roadside assistance includes 24-hour helpline assistance, where you can reach the Allianz team any time, from anywhere. They also provide the First Response Bike Brigade, which consists of technician that arrives on the scene of breakdown to perform minor roadside repairs. And on top of that, the roadside assistance is also inclusive of Allianz Tow Truck service, which provides towing services for your car to your preferred workshop, of up to 150km roundtrip.
Frequently Asked Questions (FAQs)
Does my insurance cover me if I borrow a car?
The general rule about car insurance is that the insurance policy coverage follows the car and not the owner of the car. Thus, if you are borrowing a car, the insurance coverage has most probably already been purchased by the owner of the car.
What is the difference between 1st party and 3rd party insurance coverage?
The first party is usually referring to the comprehensive car insurance cover, while the 3rd party is referring to the third party car insurance cover.
The Third Party Cover is providing coverage for claims of bodily injury or death to a third party, as well as losses or damages to third party property caused by your car.
While the 1st party, or the Comprehensive Cover, offers coverage including third party bodily injury and death, third party property loss or damage, and loss or damage to your own vehicle due to accidental fire, theft, or accidents.
What can void my car insurance?
Your car insurance policy can be void by the insurance company if you did not disclose important information on purpose, or you have disclosed fake information to the insurance company. Lying in the application, not disclosing information on purpose, or disclosing fake information is a serious offense and would cause your car insurance to void.
If you attempt to make a fraudulent claim, this will also cause your car insurance policy to void. A fraudulent claim is an act of offense and would result in serious actions taken against you.
What happens when your car insurance policy ends?
If your car insurance has expired, and you haven’t renewed them, this would mean that you have you’re your car insurance to lapse, and your car is not protected with any insurance coverage. You can procure a new insurance policy for your car or continue renewing your existing car insurance policy upon its expiry to avoid any lapse.
Buying Guides
Benefits
Since the protection, coverage, and premium is regulated by Bank Negara Malaysia (BNM), and it is more or less the same, you can look into other benefits that insurance companies offer together with their car insurance policy.
Convenience
Convenience is everything these days. From the ease of purchasing the car insurance policy to the ease of making claims, as well as the ease of reaching the representative from the insurance company, everything needs to provide you with the best convenience. Among the top 5 best car insurance Malaysia listed above, you can easily choose one for yourself.
24 Hour Hotline Services
This is another aspect that is important. As a car driver, accidents, inconvenience, and car breaks down can happen at any time. Hence, it is important to check whether the insurance company that provides you with the car insurance policy has a 24-hour hotline service.
This way, you can make sure that when anything happened to you at any time of the day, you can always contact the insurance company for assistance.
Conclusion
Car insurance is highly important to every car owner in Malaysia. Thus, it is also highly important for you to learn about the types of car insurance, the discounts you are entitled to, as well as the benefits and features that insurance companies offer.
Being in a car and driving has a lot of risks, either towards you or towards other people. Thus, it is best to have you, your car, and other people protected with a car insurance policy. This way, you are always assured that whatever happens to you while you are driving, or anything happens to your car, or the third party, you are always protected financially.
Drive with ease of mind knowing that you are always protected with a car insurance policy.