An expired motor insurance can be likened to an old umbrella with holes in it: it will not be able to provide you with protection on a rainy day.
In Malaysia, motor insurance is mandatory, without which owners will not be able to renew their road tax annually. As your policy’s expiration date approaches, it’s important to keep a few key considerations in mind.
To breeze through the renewal process and ensure you have adequate coverage, here are five common mistakes to steer clear from when renewing your vehicle insurance policy.
1. Lapsed policy
For continuous coverage, it is crucial to renew your car insurance policy in a timely manner. Set reminders by using a sticker on your car windshield or using alerts on your phone.
It’s important to avoid payment lapses as these would result in coverage gaps. Without an active insurance policy, you won’t be able to make any claims in the event of an accident during this period.
2. Being unsure of your needs
Before renewing your existing licence, it would help to evaluate what is needed and what is not in your insurance coverage.
For example, if windscreen protection or roadside assistance could come in handy, then you should consider adding these on as part of your policy.
Adjusting your coverage needs to suit your lifestyle, vehicle, and usage is crucial as you would not want to risk being under- or overinsured with unnecessary add-ons.
3. Not being fully informed
Make the most informed decision by fully exploring your options, reviewing policy details, and considering discounts.
As part of this process, engage in “comparison shopping” by checking out the comprehensive car insurance policies offered by various agencies to see which best aligns with your needs and preferences.
4. No claim discount (NCD) eligibility
Don’t forget to maximise your savings with NCD, which acts as a rewarding bonus for responsible drivers during policy renewal.
In Malaysia, the duration of your claim-free record directly influences the amount of discount you can enjoy, ranging from 25-55% off your annual premium.
5. Not understanding the claims process
When selecting motor insurance, it’s crucial to assess the claims process. Opting for a hassle-free claims experience can alleviate concerns during emergencies.
Consider factors such as the claim limit, duration, and requirements such as photo or video proof.
If you find the payout from your current policy inadequate, enhance your coverage by increasing premiums or exploring suitable add-ons.