Flood damage coverage for car insurance in Malaysia – how much does it cost for Special Perils add-on? – paultan.org

When renewing your auto insurance, you’ve probably been offered several add-ons that you can include in your policy before payment. One of the more commons ones is flood coverage or special perils, which, in light of the recent floods that struck several states in Malaysia (and future such incidents), is proving to be more and more important.

Looking at images of submerged cars on social media, it’s clear that the risk of floods shouldn’t be overlooked as it can have a serious impact on your financial wellbeing. You could live in an area that isn’t prone to flooding, but if you’re heading out and a heavy downpour occurs, things can change quickly and you could find you and your vehicle caught in an undesirable situation.

Should your policy not include special perils coverage, there’s not much you can do to submit a claim in the event your vehicle is damaged by floods, and you’ll likely have to fork out a lot of money to pay a hefty repair bill.

Many insurance providers here provide special perils coverage for a certain fee, which is typically calculated by applying a rate onto the vehicle’s agreed/insured value. It still won’t be pleasant to see the state of your car after it’s been affected by flood waters, but you’ll at least have some form of financial protection for respite.

Special perils coverage rates from insurance providers in Malaysia; click to enlarge

With that in mind, we scoured the internet to find how much it would cost you to option special perils coverage from a few insurance providers. It wasn’t the easiest to find these figures, as some are readily available, while for others, we had to call up hotlines to inquire.

These rates are for the total insured sum, but with certain insurance providers, you can determine the amount of sum insured, which comes with different rates. Certain special perils coverage options can also be limited in that some only cover floods, while others have expanded coverage to include other acts of God (volcanoes, landslides, trees, lightning strikes etc.) This is a simplified overview and it’s always best to check in with your respective insurance provider or agent for the finer details.

As you can see, the rates for special perils coverage for the insurance providers listed do not exceed 1%, with some being as low as 0.2% and some as high as 0.5%. As these rates are applied on the sum insured, the higher the amount being insured, the more you’ll need to pay.

For example, if you’re insuring for RM25,000, you’re paying as little as RM50 with insurance providers like Allianz, AXA, MSIG and Tokio Marine. With higher rates like those provided by AIA, AIG, Etiqa, Kurnia, RHB and Takaful, the payable amount is between RM63 to RM125.

These amounts increase as the insured sum goes up, as seen with examples involving RM50,000, RM100,000 and RM200,000. Keep in mind that the payable amount of special perils coverage will be subject to 6% SST, and you could save should be there be any ongoing promotions or discounts.

For a small fee relative to your vehicle’s value, you could save yourself from having to drain your bank account to have your vehicle fixed due to flood damage. If you happen to be renewing your auto insurance, special perils coverage should be high on your priority list for that peace of mind. Nature is unpredictable, but ensuring you are protected shouldn’t have to be.

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