The Importance Of Car Insurance – Don’t Drive Without It
The Question Of Car Insurance
A contractor, before digging up the road to lay cables, must first purchase “public liability insurance“. Likewise, although many are unaware, a car should possess insurance, either be it 3rd Party or comprehensive (1st Party).
Without insurance, the “road tax” simply cannot be issued.
Failure to provide insurance contravenes Section 90 (1) of the Road Transport Ordinance ’87. In case you wish to know, you could
1) Be fined up to RM1000.
2) Jailed for 3 months or both
3) Your license can be suspended for 12 months.
Recently in Malaysia, there was a “hue and cry” over 3rd party insurance problem from old cars more than 10 years old.
The problem now appears to be solved. Bank Negara it seems is reviewing the rate to come up with a “premium” acceptable to all.
For readers who know nothing much about “car insurance” it’s simple this. New cars, mostly under Hire Purchase (H.P.) ideally need 1st party insurance.
Should the above vehicle be stolen or involved in an accident, the insurance company is liable to “pay for it” or “compensate” the loss.
Should your car be involved in an accident, you should be able to claim for your repairs from your insurance company.
Likewise, if another party or “person” in involved in an accident with your car, then the other person can also make claims against your insurance company.
Besides all of the above, 1st party insurance also cover:
1) Breakage of front and rear windscreens.
2) All other glass panels (windows, quarter mirrors etc).
However, some insurance company covers only Item 1 alone. Others cover both Item 1 and 2 above. Find out yourself what your insurance company provides you.
Obviously, 1st party insurance is much more expensive. If you wish to know how your 1st party is calculated, here goes.
Car insurance required, say RM50,000. The first RM1000 is calculated at RM252 approximately.
The balance (of thousands) is approximately RM26 per thousand. No problem I hope.
Third party insurance is slightly less expensive, maybe currently in the range of RM100.
To end this short article, remember though you’re entitled to a N.C.B. (No Claims Bonus) yearly. If you make no claims against your insurance company.
N.C.B. rates of discount are for cars:
So, ladies and gentlemen, take out your calculators and do your own calculations!
Driving A Manual Car Guide Book
Do you want to know how to drive a manual car? If you do, feel free to down load the “Driving A Manual Car For Beginners” e-book. It’s free!
==> Click here to download free e-book now!
Related web pages:
1) Private Car Insurance Calculator
2) Bad Experience of Car Insurance Claim
Motor Car Insurance – 3 Types of Vehicle Insurance in Malaysia
1st Party, 3rd Party and All Riders Policy
To get your road tax, you require “motor insurance”. A vehicle without insurance, contravenes Section 90 (1) of the Road Traffic Ordinance ’87.
Basically, there are 3 types of insurance: 1st party, 3rd Party and All Riders’ Policy for motors.
Old cars normally use 3rd Party insurance. Previously, motorcycles normally use 3rd Party insurance too. But today, motorcycles are required to have “All Rider’s Policy”.
The geographical areas covered by insurance include Malaysia, neighboring Singapore and Thailand.
What does the insurance policy cover?
1st Party or “comprehensive” cover includes:
1) Loss of theft
2) Damage to one’s vehicle.
3) Damage to the party involved in an accident with your vehicle.
4) Breakage of windscreen – front and rear.
5) Breakage of all glass panels.
6) Injuries suffered by pedestrian, cyclists, motorcyclist etc.
However, it should be borne in mind, that 3rd Party insurance does not cover “loss” or “theft”. The rate of the 3rd Party is much cheaper than that of the 1st Party.
In insurance, there’s something knows as “excess”. Say for instance your insurance carry an excess fee of RM300. This means, when making a claim for say RM500, you’ll only be paid RM200 minus the excess fee of RM300.
What exactly is N.C.B. or No Claim Bonus? N.C.B. is a form of discount paid to the buyer. The highest of N.C.B. is 55%.
When you meet an accident with another car, always try to get the insurance particulars. With the above particulars, you could then go to the J.P.J. or hand them your lawyers.
They could then go to the authorities to secure they particulars they want.
Can 3rd Party insurance be converted into 1st Party insurance? The answer is Yes.
N.C.B. from one Party (3r Party) can then be converted to the 1st Party.
What do we do should one meet with an accident?
We should make a Police Report and secondly, do inform your insurance company too.
Driving A Manual Car Guide Book
Do you want to know how to drive a manual car? If you do, feel free to down load the “Driving A Manual Car For Beginners” e-book. It’s free!
==> Click here to download free e-book now!
How Much Car Liability Coverage Should People Get?
Not having enough car insurance can be the difference between financial stability and financial ruin. Legally, the most important coverage you can carry on your car insurance policy is liability.
Unfortunately, in terms of consumer understanding, many people can’t quite grasp the concept of what this coverage is and how important it can be.
The main concern of many people is making sure their own injuries are covered and that their own car will be repaired if there’s an accident; however, liability is the coverage that will pay for someone else’s bodily injury and/or property damage in an accident if you’re responsible.
Trying to determine how much liability car insurance you should have can be a daunting task. For a start, it is important to know the minimum requirement of the liability car insurance in the state you are in as each state has its own minimum requirement.
Also, you need to understand that car liability insurance protects only the other person, his or her car and their personal belongings.
It does not cover you or your property as a driver and vehicle owner.
So how much liability auto insurance should you buy? Any good insurance agent will tell you that you should buy as much as you can afford and, while this is a good rule of thumb, it does not really get you any closer to an educated decision.
Once you have determined the minimum for your state, there are two things that should be taken into consideration in order to make that decision.
First, what does the minimum cover?
And, second, what other coverage is available and can you afford it?
Car insurance liability packages are shown as three numbers. The first two numbers refer to Bodily Injury Liability Limits. For example, 20/40 means coverage up to $20,000 for each person injured in an accident, up to a maximum of $40,000 for the entire accident.
The third number (as in 20/40/10) would indicate $10,000 worth of coverage for property damage. Property Damage Liability covers you if your car damages someone else’s property.
Usually it is their car, but it could also be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you.
That is why it is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.
Once you have determined how much liability protection you need to get based on your state’s minimum requirements, it’s always a good idea to ask how much more it is for the next level higher. Very often, you can get significantly more coverage for very little additional cost.
However, if you don’t have that much cash, you can skimp on other kinds of auto coverage, such as damage to the car itself, and apply that savings toward injury liability coverage. After all, isn’t it better to worry more about the passengers and less about the cars?
Article contributed by NetQuote
