More and more Malaysians are buying motor insurance online. In this guide, we will look at the options that are available to buy motor insurance online in Malaysia, the advantages and disadvantages of each option and share with you iBanding’s overview on “Buying Motor Insurance Online”.

If you drive a car or motorcycle in Malaysia, you are probably already experienced in buying insurance. Under the Malaysian Road Transport Act 1987, all vehicles on the road need to have a valid motor insurance. This is enforced by the traffic police who ensures that everyone driving on the road carries a valid road tax sticker.

If you get caught driving without a valid road tax, you will receive a big fine.

For the past 2 years, iBanding has carried out surveys to find Malaysia’s Best Motor Insurance and Takaful companies. Our survey is based on the experience that people have with their insurance company.

One of the important findings from our surveys shows that more and more Malaysians are buying insurance online and less through insurance agents. From 2015 to 2016, the number of Malaysians buying motor insurance through the internet almost doubled from 8.7% to 16.9%.

 

 

Benefits of buying motor insurance online

Buying insurance online gives you 3 major advantages:

1. Direct Discount

Many are aware that buying through an agent costs a little more. To be exact for Motor Insurance, it costs 10% more. So if your car insurance costs RM1,000, you end up paying RM1,100. The 10% is paid as a commission to the agent for handling and servicing you. When you buy online directly from the insurance company, you will either see a 10% discount.

2. Convenience

You can purchase the motor insurance in the comfort of your own home, in your pajamas, 24 hours a day. You do not need to leave the house, look for parking and queue in long lines.

3. Speed

If you know how to fill out all the details you can get your insurance and the road tax sticker within 24 hours.

Disadvantages of buying motor insurance online

The key disadvantage of buying insurance online is not having an agent to rely on and the downsides to this are:

1. You are on your own when filling out the insurance form

When you go online to buy your motor insurance, there are a lot of information you need to know or at least have on hand. Such as type of insurance, coverage, agreed value vs. market, exclusions, riders and clauses.

You also need to know the VIN, chassis and sum insured of your car. If these terms are unfamiliar to you, you may find it frustrating to buy insurance online on your own. So read up on these terms before you purchase your insurance online.

When you provide wrong information, you can still buy insurance successfully. But mistakes in filling out the correct information can create a lot of problem in the future should you have an accident. The insurance company can refuse to pay for your damages, because you provided wrong information.

If you fill out the form, you are at fault if an information was wrongly provided. If an agent fills it out for you, the agent is at fault and you have the chance to still be paid, because it is the agent’s duty to get the correct information.

 

2. You need to have knowledge of how to claim insurance

When you buy motor insurance online, be sure to know what service you are getting. Buying insurance can be as easy as buying an airline ticket online at AirAsia.com. However, unlike airline travels, which many of us are already familiar with, insurance can be complicated.

When there has been a road accident or car theft, we would normally count on our agent for advice. It is not easy to deal directly with the insurance company, not to mention it can be very time consuming. Insurance companies will ask for all sorts of information and documents that you might not even know where to get.

This takes a lot of time. The delays benefit insurance companies as this means they do not need to pay immediately. At times, the prolonged processes even discourages people to follow through and possibly give up the claim.

A good and responsible agent acts in your interest and will fight for you ensuring that your claim gets approved as soon as possible.

 

3. You buy online, but do not get a discount

Buying insurance online refers to buying directly from the insurance company. Only then you are entitled to the 10% discount. However, many individual companies and insurance agents have created their own webpage to buy insurance. When you buy from these sites, know that you will not get the 10% discount. Best example is MYEG.

 

MYEG does not give you 10% insurance discount

When you buy insurance through MYEG, you do not get the 10% discount. This is because MYEG is registered as an insurance agent and is getting the 10% commission from you.

Since MYEG is an insurance agent, will MYEG help me during an accident?

Judging from the info on their website, if you have an accident, MYEG will forward your questions to the insurance companies’ call centre. This means that even though you have paid MYEG 10% commission, you still have to deal with the insurance company yourself for any matter including claims.

Shall I buy insurance online?

The disadvantages can seem a little daunting especially to someone without a lot of insurance knowledge and experience when it comes to claims. Perhaps if we consider these factors, the 10% commission that we pay to the agent now seem to worth its value.

It is all about individual choice. If you are only looking for savings, buying online is definitely the answer for you. Here is a list of insurance companies and their website that allow you to buy insurance online and get a 10% discount.

 

Are you looking for a reliable agent to help you with your motor insurance? Check out our insurance directory to find the best agent near you.

 

Malaysian Insurance Companies that sell Motor Insurance Online:

	Takaful Malaysia	Go to website
	Etiqa Insurance	Go to website
	Axa Affin Insurance	Go to website
	Berjaya	Go to website
	Takaful Ikhlas	Go to website