A simple guide on how to choose and buy your auto insurance online in Malaysia.
If you own a car in Malaysia or elsewhere, you must have auto insurance to make it road legal. It is one of the rules of vehicle ownership, which protects you and your vehicle from unforeseen risks or accidents.
Auto insurance is basically a plan to protect yourself and others from the losses incurred during these inevitable misfortunes, such as accidents, theft, and fire.
Under Malaysia’s Road Transport Act 1987, it is compulsory for all vehicles on public roads to be insured. However, although auto insurance is a legal requirement, the type of coverage is up to you. Types of auto insurance range from basic coverage such as third party protection, fire and theft, to full coverage with additions such as flood protection.
While most car owners in Malaysia typically rely heavily on agents for auto insurance, there are ways to buy it online, which is essential during a foreclosure – similar to what we are going through right now. But before we explain how to buy auto insurance online, you need to understand the types of coverage available and which one is right for you.
Types of auto insurance
There are generally three types of common auto insurance:
It is the most minimum and cheapest type of auto insurance. It covers bodily injury or death caused to another person, as well as the loss of a third party vehicle caused by your vehicle.
This policy provides the most basic level of protection in the event of an accident, but you cannot claim any damage to your vehicle. So basically this plan protects others from you, but not from yourself.
The car owners who usually buy this type of coverage are those whose cars are not very popular and no longer have a financing deal.
Third Party Fire and Theft
Third party auto insurance against fire and theft is essentially the same as third party insurance, but with additional coverage and protection against damage caused by fire and theft of your vehicle.
It’s more expensive than third-party coverage but gives you a bit more protection. This coverage, however, still doesn’t protect your car against loss in an accident, so maybe this insurance is good for those who drive older cars and always park them on the street.
As the name suggests, this is the auto insurance option that gives you the most protection. Unlike others, if you have an accident, you and your car are insured even if the accident is your fault. This is why this type of insurance is compulsory when you take out a hire purchase contract, because you are very protected.
It is also advisable to take out this type of insurance even if your car is not under a hire purchase agreement, as it gives you complete peace of mind on the road. What’s more, most insurance companies also give you the option of adding additional protection to your vehicle, including windshield damage, flooding, as well as breakdown assistance.
How to buy auto insurance online in Malaysia?
As we said before, although most vehicle owners rely heavily on agents to pay for their auto insurance, it is not uncommon for people to purchase it for themselves online. This is especially true during times like these, when social distancing is in action due to the pandemic.
Most insurance companies like Etiqa, Zurich, AIG, Alliance and Berjaya Sompo offer online services where you can purchase your car insurance from the comfort of your own home. Still, no one likes to shell out more than they need to on auto insurance, which is why comparison websites are the best way to determine which is the most valuable.
In 2017, the government liberalized auto insurance which gave a little more flexibility in terms of pricing according to individual risk levels. That is why it is better to shop around for auto insurance because there are many savings that can be made.
Comparison sites like Bjak.my, iMoney.my, comparehero.my, and myeg.my give you a quick overview of insurance quotes from different companies, saving a lot of time. Sometimes they even incorporate the strengths and weaknesses of each blanket, making your choice easier.
The process is as simple as providing details about yourself and the vehicle you wish to insure, whereby a multitude of quotes will be generated by different insurance companies. They even take into account the amount of CRS (no discount on claims) you have and factor that into the price.
If you have identified which insurer you want to go with, you can proceed to purchase insurance from the link provided. However, sometimes the final price does not reflect the price listed.
This is because the quotes given are calculated based on the quick information you provided on the comparison website. When you have really decided which insurer to choose, they will usually ask you for more details which may affect the final price.
Things like claim history, area of residence, type of vehicle, gender and age, and occupation all affect your final insurance premium.
It might be best to use the comparison website just as a guide, and once you’ve identified the insurer you like, go to their own website and buy it from there.
Once you have purchased the insurance, you will usually receive an email with an electronic copy of your policy, which you can print. But if you want to save the planet, you can leave it stored in your email and remove it only when needed.
Personally, I took out insurance on the Myeg site because the final price did not deviate too much from the price indicated. Myeg is also a well-known service provider which can be regarded as reliable and legitimate.
But if you are not comfortable with this method of buying insurance online, you can always call your insurance agent, and we are sure they can sort it out for you, but of course , they charge for their services and it won’t be that cheap. than buying your auto insurance online.