Each year, in order to renew your car’s road tax, you are required by Malaysian law to buy insurance for your car beforehand. This amount will decrease each year as it is dependent on the current market value of your vehicle. If your car is still quite new, you would most likely buy Comprehensive Car insurance which you probably believe covers EVERYTHING!
Be clear and never assume
Such assumption is gravely wrong as it actually does not. Although it uses the word Comprehensive, this policy only covers some major areas while the others would require you to pay additional for your premium. If you think that it covers everything just because it says comprehensive, then you should really double-check before going about driving as you please. Like any other form of insurance, you might want to buy additional coverage.
What would you need?
Among all the different types of car insurance, the comprehensive one is the best and has the most coverage. Besides that, there are third-party insurance and third-party, fire and theft insurance. While it is the best among the 3, there are still limitations to this policy. So, what does your comprehensive car insurance cover? Below are your answers
- Any damage incurred to your vehicle due to unfortunate incidents like accidents, fire or it got stolen
- Any damage caused to properties of the third-party
- Death or bodily injury incurred to the third party.
These 3 occurrences are covered by your comprehensive car insurance. Anything more than that would not be covered at all. If you examine the third coverage, it does not include you (the policyholder). This means that in the event of an accident and the policyholder is killed or suffered any bodily injuries, this policy does not cover the cost. So, if you want protection for this, you would need to add it on by paying more premium. So, what else could you add on?
- Additional drivers – This covers any additional people who could be driving the car. The comprehensive car insurance usually provides you with up to 2 additional drivers. The third additional one will need to be paid for.
- Windscreen – This is the most common add-ons and tends to happen most of the time. Your windscreen and windows are covered in case they are shattered.
- Civil distress – Coverage for damages on the vehicle due to riots, civil commotions and strikes.
- Legal Liability – This covers 2 types. The first is to Passengers where it covers you for any legal liabilities if your passenger brings it against you. The second one is of passengers. It protects you with the legal liability of your passengers for any form of negligence.
- Natural Disasters – This covers natural occurrences that damaged the vehicle like landslides, floods and such.