Does Choosing Different Car Insurance Companies Matter In Malaysia?

Some car insurers make it very easy for you to approach the companies directly or purchase the policies online, which could save you about 10% on premiums compared to going through agents.

Some car insurers make it very easy for you to approach the companies directly or purchase the policies online, which could save you about 10% on premiums compared to going through agents.

Most Malaysians think that car insurance is the same regardless of the insurance company. But in reality: choosing one car insurer over another does make a difference not just in the amount of premium you pay, but also in the services you get. In this article, we’ll examine 5 factors that make it worthwhile for you to compare between the various car insurers before making a decision.

1) The amount you pay for the policy

In Malaysia, the rates for car insurance policies are regulated by the authorities, meaning the premiums you pay between different insurance companies are almost certainly to be identical. However, that should not stop you from shopping around because there’s every chance that you’ll find a slight variation in the premiums between one car insurer and the next (Tips: some car insurers make it very easy for you to approach the companies directly or purchase the policies online, which could save you about 10% on premiums compared to going through agents. Also, some car insurance companies may charge you additional premium if you’re under 25). Even though the difference might be minute, you’ll still benefit financially by paying less.

2) The value-added services you enjoy

When your car breaks down or becomes immobile after an accident, the last thing you need is trying to figure out what telephone number to call to get some help – which is where that value-added tow / roadside service provided by your car insurance company comes into place. In Malaysia, most car insurers have some form of tow / roadside assistance service, though there are still some that do not. If you’re not good with cars, it may be to your benefit to go with a car insurer that provides such a service.

NOTE: even amongst car insurers that do provide tow / roadside service, the terms and conditions as well as the extent and coverage of the service are bound to be different. You’ll want to find one that relates to your needs the most.

3) The network of panel workshops

When you get into an accident, you will need to get your car repaired at a panel workshop in order to make a claim on your insurance policy.  And if your car insurer has a limited network of panel workshops serving your area, the relatively easy task of sending your car to a workshop would become indefinitely harder.

If you think all car insurers in Malaysia are the same when it comes to panel workshops, you may be surprised to learn that based on the latest figures on our car insurance comparison table, one car insurance company has just around 40 panel workshops servicing Kuala Lumpur/Selangor, while another has more than 170 panel workshops for the same area! For peace of mind, you may want to prioritise the car insurers with larger networks of panel workshops in your area.

4) Takaful vs conventional car insurance

Both Takaful and conventional car insurance work on similar basic principles, namely: they both require you to pay for coverage and in return, offer protection in the event of an accident. The biggest difference, however, is that a Takaful product works in accordance to Shariah principles, whilst a conventional car insurance usually does not. If Shariah-compliance is an important consideration for you, you may wish to consider only car insurers that do offer Takaful products.

Major car insurers in Malaysia that do provide Takaful car insurance can be found here.

5) Reputation and service level

As of all services you pay money for, you will want to opt for a car insurance company that has impeccable reputation and exceptional service level. Some ways you could go about finding out about service level include chatting with people who have previously made claims on their car insurance policies, or surfing through online forums and reading what the common folks are saying. This may require some hard work on your part, but you’ll be glad you did should you ever need to make a claim on your car insurance policy in the future.

Love this article? You may also wish to read up on the factors affecting your car insurance premium.

Time for you to renew your car insurance? Find the best car insurance in town and complete your car insurance renewal process for FREE directly on our car insurance comparison table

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