One of the crucial things about owning a car is getting insurance coverage. In fact, it is legally compulsory to drive with an auto insurance in Malaysia.
Prior to this, buying or renewing car insurance was pretty straight-forward – you either go to an insurance agent and he or she explains every step to you, or if you are buying a car, your car dealer will be happy to provide some recommendations.
However, after the motor detariffication in July, most insurance companies have started selling car insurance either online or through their app, making it easier for consumers to purchase the insurance without having to go look for an agent.
You might think that eliminating the agent is good, but it also means that there is no one to explain the mechanics to you. You’re left to weigh your options and decide all by yourself. But look at it this way; you get to explore more choices and pick the best coverage plan with the most reasonable rate for your car.
Sounds like a lot? Don’t worry, here are a few tips you can follow if you want to purchase car insurance through a mobile phone app:
1) Decide what kind of insurance you want
After speaking to a few people, we realised that not everyone is aware of the car insurance coverage they currently have. How much is the sum assured? Does it include windshield protection? It is a lot to remember if you only have to do it once a year.
So we imagine it must be even worse for first-timers who have yet to purchase their insurance.
Essentially, there are three main types of car insurance: third-party, third-party, fire and theft, and comprehensive. In case you’re wondering, you’re the first party, and the insurance company is the second party. Everyone else is the third party.
All three types of insurance plans provide different types of coverage at different costs. For example, the comprehensive plan costs the most as it provides the most, well, comprehensive coverage. It covers first parties, third parties, fire, theft, and more. Most first-time car owners tend to go for a comprehensive plan.
If you have an older car, you might want to opt for a third-party plan; which serves to cover the other vehicle and driver you crashed into. The reason it is advisable to get a ‘third party’ plan for older cars is that the cars tend to have a lower value, so it may be unnecessary to pay a lot for the comprehensive coverage.
2) Compare the benefits offered by different insurers
Needless to say, all the different insurance companies offer different plans with different benefits. Some offer up to a 10% discount if you purchase your car insurance through a mobile phone app. Some have a panel workshop – which limits your options – while some allow you to go to any workshop of your choice. Some offer towing services by the hour, some by distance (obviously better because it potentially covers more).
3) Choose the best insurance provider that fits your needs
Most notable companies sell their car insurance online but do not necessarily have a mobile app. Some companies that let you purchase car insurance through a mobile app are Allianz, RHB, Kurnia, Etiqa, AmAssurance, MSIG, and PIB Progressive Insurance.
Which insurance company you choose should depend on if they offer the benefits that are most important to you. Although you may also want to stick to a provider that you may already have a relationship with. For example, if you already have an insurance with Allianz, you may want to get your car insurance from them too, if you’re comfortable with the brand.
4) Be sure you want to use an app
App-based applications are still very much in their infancy, and providers are still perfecting the experience. Reading the reviews on the Google Play or App Store may help you decide if you really do want to have an app do all the work.
Some things to consider are how easy is navigating through the app and finding what you want to know. Is it easy to submit your details? How fast do they get back to you? All these will come in handy if you’re trying to make a claim.
5) Have your details ready
Of course, details like your full name, IC number, marital status, and address are easy to fill in. What’s more important is things like your vehicle type and value. You pay your insurance based on the value of your car. If you overestimate the value of the car, you’re paying more and wasting your money. If you underestimate the value of your car, you will only get partial coverage.
To avoid making that mistake, head over to iMoney.my learn how to estimate your car’s comprehensive motor insurance premium. Alternatively, you can speak to a mechanic or check out websites like CarBase.my, Carsome Malaysia, VIMS, or MyCar Info where they help to provide an approximate value of your car.
Now that you’re equipped with tips on how to purchase car insurance via mobile app, will you be renewing your car insurance via an app? If you have tried renewing or purchasing your car insurance via an app, let us know your experience in the comment section below