What Does New Car Motor Insurance Cover?
Which Riders Are Best to Add?
Quick answer:
A new car usually comes with Comprehensive motor insurance by default. It covers the big bills, but not everything.
Before you confirm the booking, check for these riders: Special Perils (flood and nature disasters), Windscreen, Towing and roadside assistance, Passenger Liabilities, and, for EV owners, charger and out-of-charge cover.
When you buy a new car, the first person to help with insurance is usually the car salesperson. The quote often starts with the basic cover at the lowest premium, before anyone has asked how you use your car.
Some distributors sweeten the deal with a few free riders, so check exactly which ones are included. The right riders save your wallet, and your stress, when an accident happens.
(Third Party, Fire and Theft, and Third Party Only are explained in a separate article.)
What Does Comprehensive Cover Include?
Comprehensive cover is built for the big bills:
I hit another person's car: Yes (third party property damage, up to RM3 million).
The other person is injured and has medical bills: Yes (third party injury, unlimited).
My car catches fire: Yes.
My car is stolen: Yes.
It also covers your own car in a collision or overturning, burglary or housebreaking and falling objects.
But that is not everything. Unexpected things still happen:
Situation | On basic cover | Rider that closes the gap |
Flood, storm, landslide | Not covered | Special Perils |
Cracked windscreen | Covered, but you lose your NCD | Windscreen cover |
Car cannot be driven | Self-arrange towing service | Towing and roadside assistance |
Passengers injured | Not covered | Passenger liability |
New parts on an older car | You pay a share (see year 5 below) | Waiver of Betterment |
Riders to Check Before You Confirm the Booking
Riders (also called add-ons or endorsements) fill the gaps. Ask which are already on your quote, and what each limit is.
Special Perils
One flood can mean a total loss, and we won’t know when a sinkhole appear in our usual driving route. This rider covers
Flood
Typhoon
Storm
Earthquake
Landslide
Sinking of the soil or earth
Other convulsions of nature
Windscreen cover
The stone flying in highway should cost you 5 years to recover NCD.
Claim from windscreen rider, and your NCD is conserved after repair.
You decide how much to cover in this rider. Includes windscreen, windows or sunroof.
Towing and roadside assistance
Some insurers cover up to RM200 in towing costs when your vehicle breaks down.
Enhanced towing and roadside assistance may offer 24/7 help with towing, flat tyres, or running out of fuel, and may even arrange a replacement car while yours is being repaired after an accident.
This convenience (and peace of mind) is well worth it.
Passenger liability, to and for
Liability to passengers covers medical expenses if your passenger is injured in an accident.
Liability for passengers covers your liability if a passenger injures someone else (for example, by opening a car door into a passing motorcyclist).
If you plan to drive your car to Singapore, passenger liability cover is required before you enter.
Driving an EV? 5 More Riders to Ask About
EV are getting popular in the motor market, so it is best to have these being covered :
Home wall charger: repair or replacement after fire, forced-entry theft, lightning, flood and similar events.
Portable charging cable: loss or damage from collision, forced-entry theft or fire.
Home charger liability: your liability if a third party is hurt, or their property damaged, by your use of the wall charger.
Public charging station: repair costs and medical expenses if you or your EV are harmed at an approved public charger.
Out-of-charge towing: a charge, or a tow to the nearest working charging point or home
Other Riders You Can Consider
Key care - losing keys easily? then yes
Break in - ensure your lost items does not hurt your wallet
Unnamed driver - avoiding a surprise RM400 if your friends or family drove your car and involved in accident damage
Waiver of betterment - ensure your bill is fully covered at year 5 onwards
Your Salesperson Checklist
Ask for each answer to be printed on the policy schedule, not just promised verbally:
Is my cover type Comprehensive and on agreed value?
Which riders are already included free (Special Perils, Windscreen, Towing, Passenger Liability, EV cover), and what are the limits?
What is my excess (the first amount I pay on a claim) and does it apply to all claims?
I am sharing my car with my family, is unnamed driver cover included in my policy?
Coming next: agreed value, excess and NCD explained, plus optional add-ons (unnamed driver, key care and break-in).
A new car is worth celebrating, so enjoy every kilometer.
With the right cover behind you, all you need to think about is the road ahead. Drive safe! 🚗
Summary
Comprehensive cover is usually the default. It handles the big bills: your own car, plus third party property damage and injury.
Before booking, check the riders: Special Perils, Windscreen, Towing and roadside assistance, Passenger liability (to and for), and EV cover if you drive electric.
Ask your salesperson whether your car is on agreed or market value, and what your excess is.
When your car reaches year 5, add Waiver of Betterment.
Quick Questions
What add-ons should a new car owner get?
Most should consider Special Perils, Windscreen cover, towing and roadside assistance, and passenger liability. EV owners should also look at charger, cable and out-of-charge towing cover.
Is Comprehensive insurance enough?
It covers the big bills, but it excludes flood and storm and does not cover liability to your passengers. Riders close those gaps.
Does Comprehensive cover flood in Malaysia?
Not by default. You need the Special Perils rider.
Will a windscreen claim affect my No Claim Discount?
On basic cover it can. With Windscreen cover, a glass-only claim does not.
Not Sure What Your Car Policy Covers?
Send me your car details and your current policy schedule, and I will go through it with you in plain English, before your next renewal or before you sign at the showroom.
Disclaimer :
This article is for general education only and is not a substitute for your policy wording.
Comments