Choosing the Right Car Insurance Plan for You

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Previously, we explained the ins-and-outs of car insurance in Malaysia. But with the many insurance companies and their different plans available out there, how do you actually determine whether a plan is right for you?

Today, we’ll discuss the factors you need to consider before making a decision!

Like all industries, car insurance is a competitive market with many players vying for your trust (and money!). But is it as simple as just choosing the company offering the cheapest plan? The simple answer is “no”! There are many factors to contemplate besides just their price point. Let’s discuss what they are!

Price is king...or is it?

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We’ll kick this list off with Mr Obvious – its price! People who (illegally) drive without valid car insurance usually cite price and the unneccessity of having insurance. It’s true that car insurance may feel like an unnecessary financial burden, especially when one goes for long periods of time without having to rely on it.

However, it only takes one unfortunate instance for someone to regret this erroneous decision, not to mention the legalities surrounding it.

Many factors affect the price of your plan. Your age, for example, can become a factor especially if you’re under 25, leaving you susceptible to additional premiums. Your car’s market or agreed value, whichever you decide to base it off on, will also determine how much you’ll be paying for your plan. And as mentioned earlier, many different insurance providers offering competitive deals will make your decision even more difficult.

Many of such providers have their plans listed online nowadays, so take your time to compare them. Remember, the trick here is about value for money, and not the actual price. As such, do consider all the other value-added services provided by each company before pulling the trigger!

Conventional insurance or Takaful?

At its heart, Takaful insurance plans work similarly to conventional insurance plans. They both provide coverage for their respective policy holders at a premium. The difference is that Takaful plans abide by Shariah law on top of government regulations. Plus, it’s free of “riba” or interest, as well as elements of uncertainty and gambling when it comes to the monetary sum involved. Capital investments in Takaful companies are also invested in Shariah-compliant funds.

It’s also important to note that Takaful is not a Muslim-exclusive option. Anyone can take up a Takaful plan, so it’s always worth to take it into consideration even if you’re a non-Muslim.

S.O.S (Standard of Service)

When you’re faced with a tragedy or emergency, the last thing you need is facing difficult and tedious claiming processes coupled with unhelpful service standards.

Do your due diligence and delve through online forums discussing the various insurance companies. Things to look out for include the ease of liasing with such companies and any protocols that may seem alright on paper, but just isn’t practical or become stress points when you’re trying to make a claim. Reputation and trust are difficult to build yet easy to destroy, so keep an eye out for positive reviews too. It might just be worth those additional ringgits spent on a company with a more positive reputation!

Another factor you should consider is the additional resources the different companies have, such as towing services as well as the number of panel workshops that they have access to. This can heavily influence your experience when you’re in need!

The search for The One (car insurance-wise) may be overwhelming for some, but don’t worry, as a dedicated service provider like Motorist might be just what you need! Let us know details and we’ll do all the legwork for you, leaving you more time to find The One (love-wise).

We hope this guide serves you well. Stay safe on the roads and happy driving, Motorists!

Read more: Weird Car Noises: What is Your Car Trying to Tell You?