Malaysia has been recently hit by major floods that damaged a lot of cars. Who pays for the damages when your car is damaged due to the flood? If you have flood protection in your car insurance as an add-on, then you are safe. The insurance companies pays for the repair cost. If you do not have flood protection as an add-on, then you have to repair your car with your own money.

What is flood protection?

Flood protection is offered by all car insurance companies in Malaysia as an add-on. This add on is called “special perils”. This add-on usually covers repair costs for vehicles that are affected by natural disasters such as floods, landslides, storms and more.

Similar to windscreen protection, the “special perils” add-on does not come with your default car insurance plan. You have to buy the add-on as an addition when renewing your car insurance.

There are 2 types of “special perils” add-on which the basic flood coverage and extended flood coverage.

Which insurance companies offers this add-on?

All car insurance companies offer the special perils add-on. All you have to do is search for “special perils” under the add-on section of your insurance company website. Then, select that add-on before renewing your car insurance. The price for the add-on will then be automatically added to your total cost for the car insurance.

Should you get this add-on?

Yes, it is a must to get this add-on, especially in Malaysia. Since it rains regularly in Malaysia, it is safe to have your vehicles protected by insurance against floods and landslides. While it is common to assume that your car will unlikely be affected from floods and landslides, it is better to be safe than sorry. Even though you do not stay in a flood prone area, your car can be affected by flood at the malls or on highways. Water damage is not a cheap fix and will cost you a lot especially if it involves mechanical parts. Paying a small amount for the add-on is definitely worth it to get that extra protection.

In addition, this add-on also protects your car from storms. If a tree falls on your car due to storm, the insurance company will cover the damages. This is an important protection to have since there have been many incidents in Malaysia where huge trees falls over due to storm.

Conclusion: Which coverage to choose?

Always pick the basic coverage as floods and storms are very common in Malaysia. However, if you park in areas where landslides can happen or if you want to protect your car to the fullest, buy the extended coverage. Your car will be protected from most natural disasters. Even though hurricanes, tornadoes and volcanic eruptions do not happen in Malaysia, the extended coverage still covers damages due to landslides. Flood usually happens when there is continuous rain. When there is flood, there are high chances for landslides happening too.

Many companies only offer the special perils add-on. However, they do not differentiate between the Basic and Extended coverage. Few companies offer the Extended coverage for the price of the Basic one. This is a good deal and can make the insurance overall cheaper.