The Unknowledgeable’s Guide To Buying Car Insurance In Malaysia

Insurance, in general, is one of the fundamentals of a personal financial protection. We can safely go so far to say that it is quite vital to have in our lives. This includes having a car insurance which, in Malaysia is compulsory for every car owner to have.

Yet, despite the mandatory requirement, it still is, to some, a confusing and to a certain extent remains a skepticism to a lot of folks. Perhaps the degree of complexity of insurance in general, or the posture of those who are selling it, or maybe it is our own preference to avoid it contributes to us becoming unknowledgeable about the subject.

But armed with proper information, your decision-making process can be simplified tremendously and eventually you’ll be able to arrive at the right choice for both you and your family.

For someone who is new at buying or renewing their car insurance, or not so new but is still unsure of not just the buying/ renewing processes but especially the claims procedure, here’s your absolute best way to go about doing it.

Buying from full-time insurance/takaful agents

In our yearly survey to find the best motor insurance company in Malaysia, we found that Malaysians largely buy their insurance from an agent. In 2016, 34% of our survey respondents bought through an agent. You can read more about the award here. So we are curious to see how good the insurance agents are compared to the other channels.

PRICE: NEUTRAL

We have ranked buying from an insurance agent as neutral because it really depends on how efficient your insurance agent is and how well you know him. If your insurance agent is a family member, then there might even be a chance that you will receive part of the commission back. On the other hand, it is not BAD like Pos Malaysia, because you pay for the extra service that a good agent is providing you.

SPEED & CONVENIENCE: GOOD

Buying from an insurance agent offers the best possible service you can get, especially if you choose a reliable agent. Picking the right agent is critical as they not only put your needs before theirs but can also help you in picking the right insurance product. Buying through an insurance agent also is the most convenient way of purchasing your insurance, because filling out all the necessary forms, payment, collection and delivery of road tax are all done through the agent.

When it comes to speed, not all insurance agents will be able to give you the road tax together with the insurance on the spot like Pos Malaysia or an insurance branch. However, some agents have their own Road Tax device from MyEG that allows them to issue the road tax. You can identify them by their MyEG sign at their office. Often times, the places are labeled as MyEG Kiosk.

SALES ADVICE: GOOD

Large agencies can represent more than one insurance company. These agents can help you compare prices among insurance companies to find the cheapest. This is important because with the motor detariffication starting July 1st, each insurance company will offer a different price for you. Read more about the Motor Detariffication in our article Malaysian Motor Detariffication.

CLAIMS SUPPORT: GOOD

Insurance agents play an important role in accidents. When you are involved in a road accident or if your car is stolen, a good insurance agent will be able to guide you what to do and what not to do. The agent will be able to advise what the insurance company will cover and pay for. A great agent will even fill out the claims form for you and collect all the necessary documents to file the claim with the insurance company.

Buying from a full-time insurance/Takaful agent is a good way to get started. When you have zero knowledge about car insurance, they are the best people to advise and perhaps even educate you about car insurance and help you out when you need to make a claim.

They are equipped with product training and will know how to explain the technical terms and coverage in a simplified manner to you. And the best thing is that they can usually come to where you are anytime you like and even remind you of your insurance renewal way in advance.

Explore other options in our 2017 Buying Guide for Motor Insurance/ Takaful and Road Tax in Malaysia.