Car damage caused by natural disasters is not cheap to repair and can sometimes cost more than the price of the car itself. Although you may think that your area is not exposed to the risk of natural disasters such as flooding, perhaps you have to drive a car and go to a place at risk of flooding for the purpose of a vacation, work and others.

For example, you work in the Klang Valley, which has lately been experiencing floods when prolonged heavy rains occur. This shows that events such as floods can happen anywhere at any time. Bad weather lately has also caused incidents such as landslides and fallen trees hitting cars.

If you do not have special insurance that protects your car in the event of a natural disaster, you will have to bear the cost of repairing your car, which will be expensive. The special perils coverage helps by not burdening you with all the costs to repair it and can also give you peace of mind. This is because you know you have insurance to cover you during emergencies, especially in the event of a flood or any other natural disaster.

Why do you need Special Perils?

Car insurance is a must-have for all vehicle owners in Malaysia. Without car insurance, you will not be able to legally drive your car and you will also not be able to renew your roadtax. The main purpose of car insurance is to protect you from losses if you are involved in an accident. In general, there are three types of car insurance for you to choose from:

• Third-party insurance
• Third-party, fire and theft insurance
• Comprehensive insurance

However, there are some things that are not covered by the above policies. For example, if your car is submerged in a flood, a comprehensive insurance policy alone will not be able to help you. Because of this, there are additional coverage or add-ons that you can include in your policy such as windshield coverage and special perils coverage.

1.  Meaning of Special Perils

Basically, special peril is an additional cover that will protect your vehicle from loss or damage caused by natural disasters such as floods, storms, earthquakes, landslides and so on. Taking this additional protection is one of the proactive measures and a recommended one as it will be able to protect your finances. You can claim compensation from the insurance company if you have to repair your damaged car due to a natural disaster.

2. Special Perils Coverage Prices

In Malaysia, there are many insurance companies that offer special perils coverage such as AXA, Etiqa, Lonpac and many more. Generally, the cost of special perils coverage varies depending on your insurance provider. Insurance companies usually offer a payment rate of around 0.20 per cent to 0.50 per cent of the sum insured for your vehicle. For example, you take a special peril from an insurance company that charges 0.50 per cent. Let’s say the sum insured for your car is RM65,000, the amount you need to pay to get this special perils additional cover for a year is only RM325.

3.  How to Get Special Perils Coverage

You can add this extra special perils policy at any time by contacting your agent or insurance company. Even so, it is recommended that you renew your car insurance with additional special peril coverage from the start. This is because the process of adding additional protection can be a bit complicated if done separately. Some insurance companies will ask for a vehicle inspection if you want to add special perils to your current insurance policy.

The main reason is to verify that your vehicle has not been damaged – some parties will try to cheat the system by adding special perils only after their car has been damaged by a natural disaster. Thus, you are encouraged to get this additional coverage when you renew your car insurance. Usually, when you renew your car insurance, you can see that there will be room for you to add types of coverage. To simplify the process of buying insurance, you can renew your car insurance at Qoala which has insurance providers that offer special perils coverage. You can get your free insurance quote in less than a minute.

4. How to Claim Car Insurance with Special Perils

You can make a claim with special perils coverage in the event your car is damaged from natural disasters such as floods. Here’s how to claim a special peril for your guide:

1. Gather evidences

Do not try to start the car’s engine because if you do, your car may suffer more damage. The important thing you need to do is take as many pictures and videos as possible that will help to make your claim.

2. Contact your insurance company

Don’t be afraid to contact your insurance company immediately and tell them about your situation. The following are the documents required by most insurance companies during the insurance claim process:

• Information such as the location, time and date the car was damaged;
• Pictures of car damage;
• A copy of the car owner’s driving license;
• A copy of the car owner’s identification card;
• Copy of car grant;
• Copy of insurance policy;
• If any, provide details and supporting documents explaining the car’s damage.

Once these documents have been submitted to the insurance agent or insurance company, you will be informed of the time required to process your insurance claim.

3. Send your car to the panel workshop

The insurance company will usually provide a tow truck service to take your vehicle to the panel workshop for repair. You can get a list of panel workshops from your insurance company. Once your car is repaired, the amount will be covered by the insurance company. Hopefully, this sharing of special perils coverage will help you make a decision to get this policy. If you are considering getting comprehensive car insurance including coverage for natural disasters such as floods, visit Qoala’s website, the best insurance and takaful marketplace in Malaysia.

Written by Hariz Hafiz, Writer – Qoala Malaysia

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About Qoala

Qoala is a startup in insurance technology (insurtech) with a mission to democratize insurance through a combination of new product development supported by machine learning-based claim processes. To date, Qoala operates in three countries; Indonesia, Malaysia, and Thailand, offering various insurance and takaful protections ranging from motor vehicles, property, personal accidents, travel, and health. It can be accessed quickly, easily and transparently through the Qoala application or website.