Things Your Comprehensive Car Insurance Does (and Does Not) Cover

We are told that a full car insurance coverage is the policy that offers the most protection to car owners (the other two being third party liability and third party liability, fire and theft).

But are you really protected against everything can this happen to your car? Or are there limits to your comprehensive car insurance policy?

Here’s what you’re actually insured against, and what you’re not, when you purchase a comprehensive auto insurance policy.

The coverage you get

First, let’s start with the coverage you get with a standard property and casualty insurance policy:

  • – Loss or damage to your own vehicle due to accident, fire and theft
  • – Death or bodily injury of third parties
  • – Property damage or loss to third parties

Note that unless otherwise stated in your auto insurance policy, the above three items are the only things you are insured against, and nothing else.

And yes, your own death or bodily harm is NOT covered…despite what many people think.

Coverage that you think is included, but in reality you have to pay for

Money talks, even for car insurance. By paying an additional premium, you can take advantage of many additional coverages in addition to the three items mentioned above.

Here are some of the common things you don’t get in a typical comprehensive car insurance policy, which can be paid for by paying extra Ringgit:

WindshieldBroken windshield, windows.
Special PerilLoss or damage resulting from flood, storm, typhoon, landslide and other acts of nature.
Strike, riot and civil unrestLoss or damage caused by strike, riot and civil unrest.
Legal responsibility towards passengersProtects against legal liabilities brought against you by your passengers. NOTE: If you intend to drive into Singapore, you MUST have this coverage. Failure to comply is an offense punishable by law.
Legal liability of passengersCovers the civil liability of your passengers in the event of negligent acts (for example, a passenger in your car opens the car door and causes an accident).
Additional DriversCovers additional named drivers for your car. NOTE: You can nominate up to two drivers per car for free. Additional named drivers from the third driver are charged RM10 per person.

Whenever a flash flood hits Malaysia (which is likely to happen every year) and pictures of cars stuck on roads that have turned into rivers are all over social media, most people think of the cost of cleaning and repairing damaged cars. All cars on the road must have insurance, but you can only claim flood damage if you have additional cover for special risks.

The same applies to other risks for which you may need to take out additional cover. For example, if you frequently use your car for long distances, it might be a good idea to be covered for windshield damage. Or if you share your car with other family members, additional driver coverage is a wise move.

Ultimately, understand that your comprehensive auto insurance policy is not as comprehensive as you might have thought (despite the word “comprehensive” in the policy title). If needed, always be sure to protect yourself by purchasing the extra coverage you need most!

Read more:
How to choose the right type of car insurance for your needs
How to make a car insurance claim

Looking for suitable auto insurance? Compare those available in Malaysia and request one directly on our car insurance comparison table at no additional cost.

This article was first published in September 2013 and has been updated for freshness, accuracy and completeness.

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