Car Insurance: What is best to consider.

Buying a car means getting insurance too, so many first timers as well as veterans trying to figure which is the best insurance company that gives them the best insurance coverage and easy claims. Let's us ask the main question, why is it compulsory to take motor car insurance? It is to PROTECT your vehicle as well as to COVER expenses when there is accident or theft. Easy enough. However, unlike life or health insurance all motor car insurance has the same policy and price. There is no such thing as cheap car insurance.

There are few aspects that influences the price of your premium here in Malaysia. The price to renew or getting insurance for your car will  depends on your car's market value. It is unadvisable to get a coverage less than the car's current value. I will explain why later on.
You have heard of NCD (no claim discounts) or NCB (no claim bonus) which lessen your premium. The percentage is decided by the insurance company as set in the insurance policy. 0% discount for your first year, 25% for the second year, 30% for the third, 38% for the fourth, 45% for your fifth year and 55% for your sixth and the following subsequent years. The maximum is 55% discount. Do note that NCB is only entitled to you as stated above if you have not made any claim. If you have, then you will have to start from 0, no matter how serious or how minute your claim is.

Speaking of claim, there are few issues that arises when most of my customers trying to claim loss. One thing you should know is that you can only claim when there is an accident or theft of your car parts which comes under the warranty. The duration of getting your claims depends on the insurance company, the condition of your car and the adjuster's decision. Usually good company will get your car done in 1 to 2 months if it is only the outer physical damage. What if you are under insured? Be very aware. If you are, and it happens that you got total loss from an accident, the insurance will not fully cover your loss. Either they will pay for what you insured for and some even pay just the half of the price as you insured. It all depends on the adjusters who holds the most power in deciding your claim. So make sure you know what you are covered for.

There are also few things you need to know about coverage made by the insurance companies. Some will only cover the car. Not the passenger or the driver. If you want the driver to be covered, you will need to add around RM70 - RM80, but it can only be claimed when there is a personal accident that causes death. Amputation or total paralisation will not be in auto motor insurance quotation, that will be under life/ health insurance :D. Also, windscreen is not covered. If you want it covered then it will be an extra charge where the price depends on the model of your car.

So, it all basically comes back to what you want from the insurance company. Some companies follow the conventional policy and some islamic. Unorthodox users will usually go for companies that could provide the best coverage and easy claims, some does not mind the wait or the loss. What ever it is, before signing the agreement read your quotation and be aware what are your risks, so don't kill agents for what you have signed up to.