Buying auto insurance can be quite overwhelming, especially if you are buying a motor insurance policy for the first time. You need to pick the insurance policy carefully not just because it is mandatory to purchase auto insurance if you own a vehicle in Malaysia but also to protect yourself from the liabilities in the event of an accident. Drivers often consider only the legal requirements when purchasing insurance; however, they should not ignore their needs and the premiums when finalizing the insurance policy. But how much auto insurance do you need? Let’s find out how much insurance you need if you own a motor vehicle in Malaysia.
First, you need enough insurance coverage to drive legally in Malaysia. In Malaysia, you must have at least third party cover. It is mandatory by law and involves compensation against any damage or bodily injury suffered by any third party or property apart from you and your car.
Second, motor insurance coverage can also protect you from all liabilities if you are involved in a road accident. With just third party cover, you can only get compensation against any damage caused to any third party’s vehicle or any bodily injury. You might wonder who will pay for damages caused to your vehicle. This is where the comprehensive policy comes in. The comprehensive plan covers the mandatory third party liability and any damages faced by you or your car. There is third party, theft and fire coverage option as well, wherein you will be compensated for vehicle theft or fire.
To decide on the auto insurance cover that is right for you will need evaluate all insurance policies available in Malaysia. Obviously, the third party policy is the cheapest plan but has the most limited scope of coverage. The premium for a comprehensive policy is fixed by the insurance company based on your age and gender, the make and age of your vehicle, driving history, and the type of insurance you purchase. While finalizing the best auto insurance for you, check the coverage limit. It is the maximum amount your policy will pay for the type of coverage you have purchased. Make sure you have the appropriate amount of coverage; because you will be responsible for any extra costs if you exceed your coverage limit.
If you will save money on premiums by purchasing cheapest insurance, you may incur further costs when repairing the damage on your own car if you should meet with an accident. Furthermore, the money saved by paying low premiums may not be enough to cover the repair costs for your own car. So, a comprehensive policy is almost always a better choice. You can also add extra coverage options with any auto insurance policy.
It is advisable to compare quotes from multiple motor insurance providers to see which company is offering you the best deal. If you know how much coverage you want to buy, start comparing quotes from multiple insurance companies.