Insuring Your Car Against Flood Is Cheaper Than You Think

Did you know that last year, motor insurance companies in Malaysia have paid out RM5.29 billion worth of claims? In other words, Malaysian drivers are collectively receiving an average of RM14.5 million per day from their motor insurance, reimbursing them for their losses due to accidents and thefts (source: PIAM).

The numbers are a testament of the value that motor insurance in shielding motorists against potentially high repair bills. It is worth adding that drivers should review their motor insurance coverage and understand they cover against, and what benefits they can expect from their motor insurance provider.

At the most basic level, drivers must know what type of motor insurance they are paying for. Generally, there are two types of car insurance - Third Party and Comprehensive. The differences between the two are as explained in the table below:

Note that neither insurance plans protect you against losses due to flood. Should you be unfortunate enough to get caught in a flash flood, or come back to the basement parking at your office only to find your car damaged by flood water, you would have to expect to pay five-figure sum in repairs.

Upgrading your insurance to cover against natural disasters could be quite pricey. Depending on the value of your vehicle, it starts from around RM250 per year for a Myvi-class vehicle, or 0.5% of the car’s insured value. It’s one way to protect your fragile heart against the shock of being handed an expensive repair bill.

If that’s a bit too expensive for you, then do consider Allianz Enhanced Road Warrior roadside assistance program.

Unlike other roadside assistance programs, Allianz Enhanced Road Warrior policyholders do not only enjoy 24-hour unlimited towing distance, but also having their car(s) insured against damages caused by flood. At only RM99 per year (excluding 6% GST and stamp duty), you can enjoy cover against flood damage of up to RM1,500.

What’s more, you also enjoy additional benefits like car replacement or arrangements for car rental and hotel accommodation should you lose the use of your vehicle, and it’s available even if your car is in Thailand or Singapore.