As the owner of a car, you should have car protection. This will get you ready to face any unfortunate events that might occur both on and off the road. In fact, in our country, it is compulsory to have car protection coverage for your car. If you think that spending money for a car protection annually is a waste of money, you might need to think again. In this article, we will explain everything you need to know about car protection.
What Is Car Protection?
It is an agreement between you and the insurance company that protects you against financial loss in the event of an accident or theft of your car. All you have to do is to renew your car insurance or takaful coverage.
Meanwhile, for a Shariah compliant car protection, an agreement is entered into between you and Takaful Operator based on the contract of Wakalah (agency).
Whereby you as a participant appoint Takaful Operator to act as an agent to invest and manage the General Takaful Fund on your behalf.
Other than that, it also applies the Tabarru’ (donation) concept, whereby the participants agree to donate or contribute their contributions to the General Takaful Fund for the purpose of mutual aid and assistance to the participants in case of need.
Once you have protection, you don’t have to worry about having to fork out your own money to cover the financial loss because you have a safety net that you can definitely rely on.
How Important Is Car Protection?
Being in a car accident is the last thing anyone wants. One big reason is because it normally costs a fortune to repair the damages, or replace the car.
Every year, there are hundreds and thousands of people involved in road crashes in Malaysia. A special study for the 8-month period of 18 March to 18 Nov 2020 reported a total of 248,116 road crashes1. If you add the remaining 4-months of 2020, the number of road crashes would naturally be even higher.
This is where a car protection plan saves the day. You will forever be grateful that you committed to a plan.
As you know, the cost of repairing a damaged car is not cheap at all but with car protection, you won’t have to worry about it.
Now that you know how important car protection is, it’s important to ensure that you never let it expire.
Let’s say you got into an accident. When you report the accident to the police, you will be in huge trouble if your car protection has expired.
When this happens, you will not only have to pay a fine to the police, you will also have to spend your own money to repair your vehicle, and possibly the other person’s car too.
Benefits of Having Car Protection
By now, you know that with a car protection plan, you will have fewer concerns when you encounter accidents on the road.
The most basic car protection is Third Party protection, which is compulsory under the Road Transport Act 1987. There is also a comprehensive cover which is considered the more advanced option.
1. Cover Third Party Damage or Losses
If you are the person who is responsible for the accident, it means that you will not only be responsible for the damage to your own car, you also need to cover the other person.
A third party protection will cover the cost of repair of the other person’s car or cost of treatments due to the injury sustained by him or her.
2. Options of Workshops
This is convenient for you as most Insurance companies or Takaful Operators will have a large network of car workshops. With this in mind, you don’t have to worry about having to find a reputable workshop to repair your car.
You will most likely get recommendations on where is the most convenient place for you. Your car will be back to its best condition in no time.
3. Safeguard Yourself in Every Way
Your insurance policy or takaful certificate covers your car in the event of accidental fire, theft, and much more. If you add-on Personal Accident plan, you will be personally covered too.
4. Gives You a Peace of Mind
Having car protection allows you to drive without stress.
If anything happens, you know that you have a safety net.
You won’t have to worry about spending thousands of ringgit when an accident happens to you.
Sometimes, we just can’t avoid accidents on the road as there are thousands of cars alongside you.
5. Saves Time and Trouble
Let’s be honest, the fallout from a car accident is one of the hardest things to go through.
You have to deal with the other driver by negotiating what is the best action that both of you can take.
It is just a lot of work and you have to spend a lot of time figuring out how to settle.
Having car protection will save you from all of these headaches.
A car protection usually offers vehicle towing, repairs, and also covers the cost of replacement.
In conclusion, having car protection is definitely a good thing for you because things could go wrong on the road. Hence, it is crucial to ensure that your car protection has not expired. Are you looking for car protection right now? With Etiqa, you can get a quote and save 10%. In just 3 steps, you can get it done.
Before you renew, please ensure
- Your vehicle is less than 20 years old
- Your car insurance or takaful expiry date is less than 2 months away
The information contained in this blog is provided for informational purposes only, and should not be construed as advice on any matter. Etiqa accepts no responsibility for loss which may arise from reliance on information contained in the article. This information is correct as of the 18th of February 2021.