Originally Posted On: https://blog.fincrew.my/2020/06/25/car-insurance-explained/
This is a fundamental aspect of making your vehicle roadworthy. Consequently, you must understand everything you can about it. Reading through this article, you’ll be given a brief rundown of what car insurance is in everyday language. Anyone within the driving age in the country knows they need to be covered by car insurance before hitting the road. However, most people don’t understand what car insurance entails. Generally, if an accident hasn’t occurred, most individuals don’t give a thought to their insurance.
As nice as that method of approach is, it isn’t really helpful in the long run. Knowing what car insurance is, what it entails, and what to expect can do wonders for informing your actions and decisions. Without getting too technical, this article will be breaking down the basics of car insurance.What is Car Insurance?
Movement from point A to point B is an important aspect of daily human life. Be it for business or pleasure. Everyone has to move at some point. That said, it isn’t always as simple as getting from one place to another. This is because accidents happen, vehicles and property get damaged. Sometimes, injuries are incurred, and in extreme cases, lives are lost. Car insurance is the one way you can guarantee that should the unexpected happen. You can cover the resulting expenses. Certain types of car insurance are mandatory, while others are purely for your convenience. We’ll be broadly exploring the types of vehicle insurance out there today briefly now.Types of Car Insurance
You can insure your vehicle to varying degrees. Here is a quick breakdown of the types of car insurance in Malaysia today and the key things you should know about them.Third-Party Coverage
By law, you must have this type of insurance if you want to drive your car. This type of insurance specifically protects you financially when you’re involved in a car accident. This insurance is called Third Party insurance because it covers the financial costs of damages you inflict on another drivers’ vehicle or person. This package doesn’t cover repairs to your car. Besides, this insurance coverage doesn’t extend to incidents of theft, fire, or acts of nature to your vehicle.Third-Party, Fire and Theft Cover
This is a more comprehensive car insurance package. It should be noted that this particular package isn’t compulsory. Like the basic third party coverage, it insures and pays for any damage or medical bills you inflict on another drivers’ person or vehicle. Also, like third party coverage, it doesn’t cover the costs of your vehicle repairs. It, however, does insure you against incidents of theft and accidental fires.Comprehensive Coverage
This vehicle insurance package combines the best of both insurance packages discussed above. Along with providing you third party coverage and insurance against theft and accidental fires, comprehensive coverage also extends to cover the financial expenses of all repairs to your car resulting from the accident.
Bear in mind that no car insurance package will cover medical expenses for you or your passengers involved in the accident. In conclusion, car insurance is a must-have, and just because the law says so. In addition to taking the compulsory insurance package, checking out what additional coverage suits you–is never a bad idea.