How To Choose And Buy Car Insurance Online In Malaysia?

A simple guide on how to choose and purchase your car insurance online in Malaysia. 

If you own a car in Malaysia or anywhere else for that matter, you must have auto insurance to make it road-legal. It's one of the rules of vehicle ownership, which protects you and your vehicle from unforeseen risks or mishaps.

Car insurance is basically a protection plan for yourself and others against losses incurred during those unavoidable misfortunes, such as accidents, theft, and fire.

Under the Malaysian Road Transport Act 1987, it is compulsory for all vehicles using public roads to be insured. However, while auto insurance is a legal requirement, the type of coverage is up to you. Types of auto insurance span from basic coverage such as third party, fire and theft, all the way up to fully comprehensive coverage with add ons such as protection against floods.

While most car owners in Malaysia usually depend heavily on agents to get their auto insurance, there are ways to purchase it online which is essential during a lockdown - similar to the one we're currently going through. But before we go into how you can buy your car insurance online, you should understand the types of coverage out there and which one is for you.

Types of Car Insurance

There are generally three types of common car insurance out there:

Third-Party 

This is the most minimum and cheapest type of car insurance. It covers against injuries or deaths caused to another person, as well as loss to a third-party vehicle caused by your vehicle.

This policy provides the most basic level of protection in an accident, but you cannot claim any damages to your vehicle. So basically, this plan protects others from you, but not yourself.  

Car owners who usually purchase this type of coverage are those whose cars are not valued highly and no longer under a financing arrangement.

Third-Party Fire and Theft

A Third Party Fire and Theft car insurance is essentially the same as Third Party insurance, but with the added coverage and protection of damages from fire and theft of your vehicle. 

It is more expensive than Third Party coverage but does give you a bit more protection. This coverage, however, still does not protect your car from losses in an accident, so perhaps this insurance is good for those who drive older cars and always park them on the streets.

Fully Comprehensive

As the name suggests, this is the car insurance option that gives you the most protection. Unlike the others, if you have an accident, you and your car are insured even if the accident was your fault. This is why this type of insurance is compulsory when you take up a hire purchase agreement, as you are highly protected.

It is also advisable to take this type of insurance policy even if your car is not under a hire purchase agreement, as it gives you total peace of mind on the road. In addition, most insurance companies also give you an option to add on extra protection to your vehicle, including windscreen damage, flood, as well as breakdown recovery services.

How to buy car insurance online in Malaysia?

As we said before, although most vehicle owners depend heavily on agents to sort out their car insurance, it's not uncommon for people to buy it themselves online. This is especially true during times like these, where social distancing is in action due to the pandemic.

Most insurance companies such as Etiqa, Zurich, AIG, Alliance and Berjaya Sompo offer online services where you can purchase your car insurance from the comfort of your own home. Still, nobody likes to fork out more than they need to on car insurance, which is why comparison websites are the best way to figure out which one presents the most value. 

In 2017, the government liberalised car insurance which gave a bit more flexibility in terms of pricing based on individual risk levels. This is why it's best to shop around for car insurance as many savings can be had.

Comparison websites such as Bjak.my, iMoney.my, comparehero.my and myeg.my gives you a quick glance at insurance quotes from different companies, which helps save a lot of time. They even sometimes include strong points and weaknesses of each coverage, making it easier for you to choose.

The process is as easy as providing details of yourself and the vehicle you would like to insure, whereby a host of quotes will be generated from different insurance companies. They even consider the amount of NCD (no claims discount) you have and factor it into the price. 

If you have identified which insurer you would like to go with, you can proceed to buy insurance from the link provided. However, sometimes, the final price doesn't reflect the quoted price.

This is because the quotes given are calculated based on some quick information you provided on the comparison website. When you have actually decided which insurer to go for, usually they will ask for more details which may affect the final price. 

Things such as claim history, residence area, type of vehicle, gender and age, as well as occupation all affect your final insurance premium. 

Perhaps it's best to use the comparison website just as a guide, and once you have identified which insurer you like, go to their own website and buy it from there instead.  

Once you have purchased the insurance, you will usually get an email with a soft copy of your policy, which you can print out. But if you're interested in saving the planet, you can leave it stored on your email and only pull it out when it is needed. 

Personally, I have bought insurance from the Myeg website as the final price did not deviate too much from the quoted price. Myeg is also a well-known service provider who can be considered reliable and legitimate. 

But if you're uncomfortable with this online insurance purchasing method, you can always call your insurance agent, and we're sure they can sort it out for you, but of course, they charge for their services and it will not be as cheap as purchasing your car insurance online.