Malaysia - What Is Car Insurance?

What Is Car Insurance?

Well, car insurance is designed to protect you financially from the risk of being involved in the accident and has to pay a large sum of money for physical damage and vehicle repair costs. Before the BANK NEGARA MALAYSIA announced the liberalization of the car insurance sector, which will take effect on July 1, 2017, local car insurance has been adjusted for the same price and coverage.

What Is Car Insurance

Although the insight of car insurance after the liberalization takes effect is still unclear, you may want to familiarize yourself with the type of car insurance in Malaysia and your claim rights in different scenarios.
In general, there are three types of car insurance available:

1. Third party coverage

This is the most basic and usual car insurance purchased by car owners as it is mandatory to have this type of car insurance for every vehicle. Having this insurance cover allows car owners to be protected from having to pay other car damage in the event of an accident.

2. Third party protection, fire, and theft

In addition to third party protection, car owners are entitled to claim damage to their own vehicle caused by fire or theft.

3. Comprehensive protection

Car owners are entitled to claim not only for the cost of repairing physical damage and third party vehicles but also their own. Moreover, they are entitled to fire protection and theft as well. Typically, expensive car owners will sign up for this type of insurance plan.

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