For those owning an old car, getting insurance for their car(s) proves to be a challenge. Especially for cars above 15 years old. More often than never, owners are rejected by insurance companies when applying for third party insurance.
The reason is simple. Third party insurance is just not profitable for the insurance companies. In fact, with the raising cost of repairing cars and insurance fraud, the insurance company might risk loosing money when claims are made. There was an issue that was brought up by the insurance companies where they wanted to raise the already high premium of third party insurance. Thankfully it has not materialized yet. So, what can you do about this?
There are a few things you can do. By asking and reading around, I found out that if you have been rejected by almost all the insurance companies, you can try going for UniAsia insurance. I sent an enquiry to them and the next day they called me up to answer the enquiry.
As you know For some, they don’t really worry much about the claiming part of the insurance but they just need the insurance to renew their road tax.
Ok, there are 2 types of Third party insurance they offer, the usual 3rd party insurance and 3rd party fire and theft insurance. The person who called me said the usual 3rd party insurance is way cheaper about RM100++ but the catch is you have to take your car to undergo Puspakom inspection, which I assume is the Puspakom 10 Point Inspection which I was told cost about RM50. Once your car has passed the test, you can then apply for the 3rd party insurance. If you have a lot of time on your hands, this method is suitable for you. But as usual, this insurance only covers against bodily injury or death of third party.
Alternatively, you can take 3rd party fire theft insurance with cost RM300++ according to the person who called me. For this type of insurance, you don’t need to trouble yourself sending your car to Puspakom. It’s an easier fix as compared to the first option. The policy covers :
- Against bodily injury or death of third party
- Against damage to third party’s property
- To own vehicle due to fire, explosion, lightning, burglary, housebreaking or theft. Sum insured is the declared insured sum or market value of the vehicle (whichever is lower).
So, these are the 2 options available, both with their pros and cons. It’s cheaper to get the normal 3rd party insurance, but you have to go through the trouble of getting your car checked by Puspakom. The 3rd party fire theft is more expensive, but easier. You even get covered for theft or if the car suddenly explode without any warning.
I personally recommend taking the 3rd party fire theft, as it is much convenient. Besides, if your car was stolen or it decided to explode, at least you have a few thousand to pay for the down payment for a new car.