Malaysia has been hit with one of the worst flood recently. As a result, many cars have been affected. Malaysian largest car manufacturer, Perodua recently reported that more than 11,000 cars have been sent to their service center for repairs due to water damage. Repairing a water damaged car is very costly since it involves many mechanical and electronic parts. The only way to save money is by having flood protection as an add-on with your car insurance. Flood protection is one of the most important add-on when you get car insurance today. Our previous article, discusses on the types of flood protection and the benefits of having flood protection. You can read it here.
In this article, we will be comparing the prices of flood protection from a few insurance companies in Malaysia. In doing this comparison we will be using a 2015 Proton Persona SE-4 Speed Automatic. The driver earns 55% NCD. A sum insured of RM14,000 to RM14,100 is used in the comparisons below.
Overview of compared companies
- Etiqa Motor Insurance and Takaful
- AXA Car Insurance
- Syarikat Takaful Malaysia
- Berjaya Sompo Motor Insurance
- Allianz Motor Comprehensive Insurance
Comparison 1: Etiqa Motor Insurance
Etiqa offers 2 types of flood coverage add-on, the basic flood coverage and the extended flood coverage. First, let’s take a look at the basic flood coverage. This coverage cost RM35 and protects your car from floods, landslides and thunderstorm. This coverage is an additional of 5.3% to the basic contribution.
The extended flood coverage cost RM70 and provides additional protection for your car. In addition to flood, landslide and thunderstorm, this coverage also protects your car from heavy rain and extreme weathers, especially in rural areas. This coverage is an additional of 10.7% to the basic contribution price.
Comparison 2: AXA Car Insurance
AXA offers only one type of flood coverage in their add-on. This add-on will protect your car against damages due to flood, landslide, storm and many more for the full sum insured of your car.
This add-on from AXA cost only RM30 and is an additional of 3.7% to the basic premium price.
Comparison 3: Syarikat Takaful Malaysia
Takaful Malaysia offer flood coverage through an add-on called ‘special perils’. This add-on protects your car against loss or damages caused by natural perils such as flood, storms, landslides and many more.
This add-on cost RM70.50 and is an additional of 8.9% to the basic contribution price.
Comparison 4: Berjaya Sompo
Berjaya Sompo offers flood protection in their motor insurance policy as one of their benefits called “special perils coverage”. There is no need for an extra add-on to get your car protected against flood, storm, landslides and more.
The flood protection that Berjaya offers covers up to RM10,000 only or 20% of your sum insured, depending on which value is lower. This means that :
- If your sum insured is RM10,000 then Berjaya will cover RM2,000 maximum for your car repair cost.
- If your sum insured is RM50,000 then Berjaya will cover RM10,000 maximum for your car repair cost.
- If your sum insured if RM100,000 then Berjaya will cover RM10,000 maximum for your car repair cost.
If your car repair cost is more than RM10,000, you need to pay the remaining amount on your own.
Comparison 5: Allianz Motor Comprehensive Insurance
Allianz offers flood protection through an add-on called “special perils”. This add on covers loss or damages to your car caused by flood, storm, landslide, sinking of soil and many more.
This add on costs RM28 which is about an additional of 3.4% to the basic premium price.
Overview of Comparison
The table shows the flood coverage offered by 5 companies arranged from the cheapest. The table shows prices and the percentage that you will pay in addition to the basic contribution. It can be seen that Berjaya Sompo offers no additional cost for their flood coverage. Allianz is the cheapest at only RM28 for an additional of 3.4% to the basic contribution. On the other hand, Etiqa’s extended flood coverage is the most expensive at RM70 which is an additional of 10.7% to the basic contribution.
Conclusion: Which To Choose?
If you do not want to spend extra for flood coverage, then you should consider Berjaya Sompo as there is no additional cost for the protection. However, this protection is very limited. It covers only up to RM10,000 maximum or only 20% of your sum insured, depending on which is lower.
We suggest you to buy this flood coverage only if your sum insured is below RM50,000. If your sum insured is above RM50,000, we strongly advise you not to choose Berjaya Sompo as your car repair cost might not be fully covered and you need to pay the remaining cost on your own.
If you want the best flood protection, we advise you to choose AXA as it covers repair cost up to the full sum insured of your car. This means that your flood coverage will offer the same level of protection as your basic sum insured. In addition, it is also cheap at RM30 and only 3.7% extra to your basic contribution price.