This car insurance policy covers all of the above, but the major reason to buy comprehensive is the protection given to your OWN car! In addition to third party protection and fire and theft coverage for you own car, you will get cover for any accidental loss or damage inflicted to your vehicle due to an accident.
It is probably a good idea to buy yourself a comprehensive car insurance plan if you own a relatively expensive car – a car that has a market value of more than RM30,000 would fit just nicely in this category.
|Types of Motor Insurance||Third party bodily injury/ death and loss/ damage to third party property||Loss/ damage to your vehicle due to accidental fire or theft||Loss/ damage to your vehicle due to an accident|
|Third Party Cover||YES||NO||NO|
|Third Party Fire and Theft Cover||YES||YES||NO|
What Your Car Insurance Will Not Normally Cover
If you have read the terms and conditions for all three policies carefully, provided that you actually understood everything, you will realise that some incidents are not covered, even though they occur fairly frequently, for example – you would expect your car insurance to cover your death in the event of a serious accident…but does it really? To be clear, that’s what a motor personal accident insurance is for, something you should also sign-up for when taking up a car insurance plan.
1. Your own death or bodily injury because of a motor accident
You would expect that your own death or at least physical injury to be coverage for a modest amount of money; well, stranger things have happened. Your personal accident insurance or medical insurance might have you covered, but not a car insurance plan. Nope, not even the comprehensive cover – that means no hospitalisation allowance or coverage for funeral expenses.
2. Your liability against claims from your passengers
A passenger who gets hurt because of a car accident will usually have an easier case compared to the person behind the wheel – if the accident involves two vehicles, one of the drivers will most likely be found negligent and liable for the physical injury to the passenger.
However, you will be able to pay additional premium on your motor insurance to include Passenger Liability Extension Cover, in the event that your passengers choose to sue you.
3. Stolen non-factory fitted vehicle accessories such as car stereos, leather seats, sports rims etc.
Pimping out your brand new Honda City with custom spinning rims, genuine leather seats, and an expensive (but totally unnecessary) sound system might earn you brownie points with your friends and colleagues, but you may also be drawing a lot of unwanted attention from less agreeable people i.e. car thieves. Make sure in addition to your lavish upgrades, you install additional car security features, such as a powerful GPS tracking system!
4. Consequential loss, depreciation, wear and tear, mechanical, technical breakdown failures, or breakages
Like everything else – cars aren’t built to last. As vehicle parts wear out with time (excluding parts made out of glass e.g. windshield), the value of your car depreciates along with them – and honestly, a car’s value drops the moment it leaves the showroom.
You’ll probably lose up to 40% of its initial value 5 years down the road – literally! If you’re planning to insure a car that is pushing 15 years of age, good luck finding an insurer that’ll take you on.
5. Vehicle damage due to acts of nature e.g. flood, landslide, typhoon
These unfortunate events, along with earthquakes and hurricanes are commonly referred to as natural disasters or acts of God, and are not covered in standard car insurance policies. On the other hand, you may pay higher premiums to extend your policy to cover flood, landslide, landslip including adequate cover for your passengers.
As you’ve read, insurance companies will allow you to add-on optional benefits to your car insurance policy to be insured for all five exclusions that we’ve mentioned above, including coverage for windscreen repairs and replacement – but of course, you will have to pay a higher premium. So you’d now probably want to know what goes into calculating your premiums?