Does Choosing The Right Car Insurance Company In Malaysia Matter?
When it’s time to insure your car, you need to know how to choose the right auto insurance that meets your individual needs.
In order to make a better decision, here are 5 factors you should put on your checklist.
1) The amount you pay for the policy
In the past, car insurance premiums were governed by a tariff structure controlled by Bank Negara Malaysia. The liberalization of auto insurance in Malaysia since 2017 has seen local insurers gradually introduce risk-based pricing.
This means that suppliers are able to introduce a wider range of products with more flexible prices. You should shop around and compare the products in the market as there is every chance that you will find a lightweight variation in premiums from one auto insurer to another
Advice: Some auto insurers now offer their policies entirely online, making it easier for you to compare, apply, purchase and file your claims online.
Additionally, some auto insurance companies may charge you an additional premium if you are under 25.
Even though the difference may be small, you will still benefit financially by doing a comparison before you decide.
2) The value-added services you benefit from
When your car breaks down or becomes stationary after an accident, the last thing you need to do is try to figure out which phone number to call for help – this is where the towing / breakdown service comes in. value added provided by your auto insurance company. in place.
In Malaysia, most auto insurers offer some form of towing / roadside assistance service, although there are still some that do not. If you are not good with cars, it may be to your advantage to hire an auto insurer that offers such a service.
To note: Even among auto insurers that provide towing / breakdown services, the terms and conditions as well as the scope and coverage of the service are bound to be different. You’ll want to find one that best suits your needs.
3) The network of panel workshops
When you have an accident, you will need to have your car repaired at a panel shop in order to make a claim on your insurance policy. If your auto insurer has a limited network of panel shops serving your area, the simple task of sending your car to a shop would suddenly become more difficult.
Auto insurers that have a national presence may be more suited for motorists who need to travel out of town frequently. However, some people may prefer the personal touch of their local insurance provider who may have limited coverage outside of certain states.
For your peace of mind, you may want to prioritize auto insurers with larger networks of panel shops in your area.
4) Takaful vs conventional auto insurance
Takaful and conventional auto insurance operate on similar basic principles, namely: they both require you to pay for coverage and in return you provide protection in the event of an accident.
The biggest difference, however, is that a Takaful product operates under the principles of Sharia law, unlike conventional auto insurance. If respecting Sharia law is an important consideration for you, you may want to only consider auto insurers that offer Takaful products.
The major auto insurers in Malaysia that provide Takaful auto insurance can be found here.
5) Reputation and level of service
As with any service that you pay money for, you’ll want to go with an auto insurance provider that has a good track record and an exceptional level of service.
Some of the things you can do to learn more about the level of service are chatting with people who have made claims on their auto insurance policies, or surfing online forums and reading what ordinary people are saying.
When faced with an emergency, some people may prefer to deal with a familiar agent rather than an anonymous call center. Others may prefer to file their claims seamlessly using online channels, while others choose to go through an agent. It is always best to find the auto insurance provider that best meets your needs when it comes to these personal preferences.
This article was first published in 2013 and has been updated for freshness, accuracy and completeness.
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