For the sake of Roadtax Renewal? Well…I can say it’s not totally wrong. Here in Malaysia, when you asked around “Why do you need Car Insurance?” you will be surprise some of them will give you the answer…. “to renew my roadtax”.
If you had read through our post on the guideline to solve a car accident, we had stated that there were more than 500 thousands of accidents recorded in year 2016 by the Malaysia Statistic Department.
We can say that, we drive VERY slowly or carefully and nothing will happen to us, but if we look at that statistics, of course nobody wants accidents to happen, no one is going to play a fool with their precious life, sometimes things are out of our control.
We had listed a few main reason below why you need to have car insurance.
Compensation to you for an accident caused by others
For example, one day you are driving to work, someone with a truck hits you at your driving area door. You are now injured and required to be send to clinic for medication. Other than that, your car cannot be driven anymore and has to be towed to workshop. It’s the fault of the truck driver.
Imagine, without insurance coverage, all these costs incurred wouldn’t be little, and the truck driver who doesn’t have a good financial sources might not be able to pay you for all these costs incurred.
Now, with insurance coverage, all these are not a worry for us. All these costs will be borne by the truck insurance company including the repair of the truck itself.
Compensation to others for an accident you caused
Based on the above example, imagine you are the truck driver now, and you are at the fault. Without insurance, you would need to have spend all your hard earned life savings just for this accident paying for the costs of the victims and your own truck.
With insurance coverage, and you are the guilty party, all claims will be towards your truck insurance. You do not need to worry on your hard earned savings. Although this claim will cause the loss of your No Claim Bonus for the next insurance premium of your truck, it is just small amount of money compared to the costs of medication , car repair and truck repair.
To protect the bank of hire purchase for your vehicle
The Bank will need to know that you have adequate car insurance coverage as the loan is secured by your vehicle. For example, Mr ABC bought a new car for RM 80,000.00, he settled the down payment RM 30,000.00 and balance RM 50,000 he took a hire purchase loan from bank.
If without insurance, the bank surely will not approve the loan to Mr ABC. Why? Simple explanation, after Mr ABC drove the car for 2 months, it got stolen. Who will bear this loan now? Mr ABC now do not have the car on hand, of course he would not want to continue to pay the loan. Now..the story would be different if you had insurance coverage. Get what I meant?
Compulsory Requirement by laws
Remember on the top of the post we had mentioned about for the sake of Road Tax renewal? Our Malaysia Government had implemented that it is a must to have insurance coverage for your vehicle before you can renew your Road Tax yearly. This was actually a good move to protect all vehicle owners from risks of owning and driving a car.
So, in Malaysia, it is a must for every car owners to have their car cover by insurance. Unless..you have an unused car staying at your home for a year or more, you can skip that year not to buy insurance or renew Road Tax, but bear in mind, there are rules by JPJ that if your Road Tax more than 1 year without renewal and you start to renew again a year after, your vehicle is a must to send to JPJ for inspection before they allow you to renew your Road Tax again.
For any advice on car insurance renewal, road tax renewal, JPJ car inspection service (Selangor, Klang area) you may email us at email@example.com or use our live chat service.
Kem Yong Enterprise