Many of us want cheap insurance premium, however, at the cost of lowering the Sum Insured of your car.
When we first started working in the insurance industry. we had a client who complained as to why he had to pay extra cash to the workshop for the reparation of his car when in fact (the customer added) that the insurance company should bear the full cost of the reparation.
One of the reasons that the customer had to pay extra from his own pocket was because he had insured his car below the suitable sum insured amount that year.
We will further explain the scenario above in detail in our next weekly blog whereas for now;
one must first understand the definition of the word "Sum Insured" in insurance language.
Sum Insured?
The maximum amount that the insurance company will pay You for a claim should your car be deemed as total loss or was stolen (theft).
So the question is, how to determine the SUITABLE Sum Insured of your car.
Basically, when you buy a car, for example, a brand new Perodua Myvi priced at RM60,000.00, , the Sum Insured of your car should be at RM60,000.00! No more or no less than that.
However, as the years go on, your Perodua Myvi's value depreciates and after a year of driving, your car insurance has finally expired and you need to renew it.
So what is the suitable amount of Sum Insured should you insure your car?
The answer is, the Market Value of your car at the time of renewing your car insurance.
How to know the Market Value of your car?
Easy! Head over https://m.mudah.my/ OR https://www.mycarinfo.com.my/Valuation/SearchVehicle?version=free&clean=1 and key in your vehicle details and voila!, you get the Market Value of your car at the material time.
Say you own a 2019 Perodua Myvi 1.5 AV, key in the details in www.mycarinfo.com.my shown as below.
You then click on the "GO" button which brings you to the next page and proceed to click on the "GET VALUATION" button.
Finally, it comes to the last page and will display the Market Value of your 2019 Perodua Myvi 1.5 AV which is at RM42,800.00.
It is extremely important that you insure your car according to its Market Value at the material time of renewal or you will be in deep trouble, or should we say, your pocket will burn a big hole in your trousers when an accident occurs.
Blog photograph creditted to:
<ahref="https://www.freepik.com/photos/woman">Woman photo created by wayhomestudio - www.freepik.com</a>
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