Is Your Car Insurance Really Enough? 10 Coverage Options Every Malaysian Driver Should Know - Part 2

6. All-Drivers Coverage

Who Is Allowed to Drive Your Car?

A motor policy may be issued with:

• Named drivers

• Authorized drivers

• An all-drivers extension

• Other driver conditions stated in the schedule

If another person drives the car and is not appropriately covered under the policy, an additional compulsory excess or other conditions may apply when a claim is made.

An All-Drivers benefit or endorsement is intended to extend protection to eligible authorized drivers rather than restricting coverage to only the policyholder and specifically named individuals.

Some Malaysian motor products currently advertise that all authorized drivers are automatically covered, but this is not universal across every insurer or policy.

Who May Find It Useful?

All-Drivers coverage may be helpful when the car is regularly driven by:

• A spouse

• Adult children

• Parents

• Siblings

• Employees

• Colleagues

• Other permitted drivers

For example, a household may have one car shared by the policyholder, spouse and university-aged child. Adding every regular driver individually may be inconvenient. An all-drivers arrangement may offer greater flexibility, subject to its conditions.

“All Drivers” Does Not Mean Absolutely Anyone

Coverage generally remains subject to requirements such as:

• The driver must have the owner’s permission.

• The driver must hold a valid license.

• The vehicle must be used for an insured purpose.

• The driver must comply with age or experience conditions.

• The driver must not be excluded under the policy.

• The driver must not be driving under the influence.

• The vehicle must not be used for unauthorized commercial or e-hailing purposes.

Check whether a compulsory excess applies to:

• Young drivers

• Learner or probationary drivers

• Unnamed drivers

• Drivers below a specified age

• Drivers with limited driving experience

  
  

E-Hailing Requires Separate Attention

An ordinary private-car policy should not be assumed to cover e-hailing activities. Drivers using their vehicles for platforms or fare-paying passengers may require an e-hailing extension that addresses matters such as:

• Loss or damage while performing e-hailing duties

• Liability to fare-paying passengers

• Liability arising from passengers’ negligent acts

• Personal accident benefits for the authorized e-hailing driver

Specialized e-hailing add-ons are available in Malaysia, but their terms must be checked separately.

7. Waiver of Betterment

What Is Betterment?

Betterment is one of the most misunderstood parts of motor insurance.

When an older car is repaired after an accident, a damaged used part may need to be replaced with a brand-new original part. The new part puts the car in a better condition than it was immediately before the accident. The policyholder may therefore be required to contribute part of the replacement cost. This contribution is commonly called a betterment charge. Betterment generally becomes more relevant as a vehicle ages, subject to the insurer’s policy wording and applicable scale.

A Simple Example

Assume:

• Your car is several years old.

• A covered accident damages a component.

• A new original replacement component costs RM5,000.

• The applicable betterment contribution is 20%.

You may have to contribute:

RM5,000 × 20% = RM1,000

The insurer would handle the remaining covered amount, subject to all other policy terms, excesses and claim approval. This is only an illustration. The actual rate and calculation depend on the policy and circumstances.

What Is a Waiver of Betterment?

A Waiver of Betterment is an optional benefit that may reduce or remove the policyholder’s betterment contribution when eligible new original parts are used for a covered repair.

In simple terms:

• Betterment is the amount you may have to contribute.

• Waiver of Betterment is the protection that may prevent or reduce that contribution.

This extension can help make repair costs more predictable, especially for older vehicles.

Who Should Consider It?

It may be useful for owners of:

• Cars that have reached the age when betterment may apply

• Vehicles with expensive original parts

• Imported vehicles

• Luxury vehicles

• Hybrid or electric vehicles

• Cars that the owner intends to keep for many more years

Check the Conditions

A Waiver of Betterment may be subject to:

• Vehicle-age limits

• A maximum vehicle value

• Use of approved workshops

• Use of original equipment manufacturer parts

• Claim limits

• A maximum number of claims

• Additional excess

• Product availability

It may also be included automatically in certain enhanced motor plans rather than offered separately.

Ask the insurer:

• At what vehicle age does betterment apply?

• What betterment percentage may apply to my car?

• Does the waiver remove the full contribution?

• Which parts are covered?

• Are original parts required?

• Does the waiver have a claim limit?

• Are there vehicle-age restrictions?

8. Key Care Cover

Replacing a Modern Car Key Can Be Expensive

Modern car keys may include:

• Remote-control functions

• Transponder chips

• Keyless-entry technology

• Immobilizer coding

• Push-start functions

• Vehicle-security programming

  
  

Replacing one may require more than cutting a new key.

The total expense may include:

• A new smart key

• Electronic programming

• Immobilizer synchronization

• Replacement of locks

• Locksmith charges

• Towing the vehicle

• Labor costs

What May Be Covered?

Depending on the insurer, Key Care may cover replacement or related expenses following certain events such as:

• Theft

• Robbery

• Housebreaking

• Accidental loss

• Accidental damage

However, not every product covers all these situations. For example, a benefit may cover keys stolen during housebreaking but not a key simply misplaced at a restaurant.

Check the Details

Ask:

• Which causes of loss are covered?

• Does it cover accidental misplacement?

• Is physical damage covered?

• Are programming costs included?

• Are replacement locks included?

• Are towing expenses included?

• Is a police report required?

• What is the maximum claim limit?

• Is there an excess?

• How many claims are permitted?

Key Care may be especially valuable for vehicles with expensive smart-key systems.

9. Compensation for Assessed Repair Time or Transport Allowance

What Is CART?

CART commonly means Compensation for Assessed Repair Time. It may provide a daily amount for the repair period assessed after a covered accident, subject to the policy terms, selected benefit and maximum number of days. Some insurers may offer a differently structured transport allowance rather than traditional CART.

Why It Can Help

When your car is in the workshop, you may need to pay for:

• E-hailing services

• Taxi fares

• Public transport

• Car rental

• Additional family transport

• Alternative travel to work

• Client visits or business appointments

These costs may become significant if the repair takes several weeks.

CART can be relevant for:

• Salespeople

• Property agents

• Business owners

• Parents sending children to school

• People caring for elderly relatives

• Anyone who depends heavily on a car

  
  

Assessed Repair Time Is Not Necessarily the Workshop Period

This is an important distinction.

Suppose your car remains at a workshop for 30 calendar days. The assessor determines that the repair work itself should require only 12 days.

The CART benefit may be calculated using the assessed 12 days—not the entire 30-day workshop period.

The remaining delay may result from:

• Waiting for spare parts

• Workshop scheduling

• Public holidays

• Additional repairs requested by the owner

• Delays unrelated to the insured accident

  
  

Questions to Ask

• What is the daily amount?

• What is the maximum number of payable days?

• Is payment based on assessed or actual repair time?

• Does it apply only to an own-damage claim?

• Does it cover theft?

• Does it cover breakdowns?

• Must I provide transport receipts?

• Is it automatically included or separately purchased?

10. Personal Accident Benefits

Protecting the Driver and Passengers

A comprehensive motor policy mainly protects the vehicle and addresses certain third-party liabilities. It does not necessarily provide broad personal financial protection for the driver and passengers following an accident.

Some motor policies therefore offer personal accident benefits for:

• The authorized driver

• Named drivers

• Passengers

• Both the driver and passengers

Depending on the product, benefits may include:

• Accidental death

• Permanent disablement

• Medical reimbursement

• Ambulance expenses

• Funeral expenses

• Hospital income or daily allowance

For example, certain motor-related takaful products advertise specified benefits for accidental death or permanent disability, together with roadside assistance.

Why It May Be Valuable

After a serious accident, a person may face:

• Temporary inability to work

• Permanent disability

• Medical expenses

• Rehabilitation expenses

• Transport costs

• Changes to the home or vehicle

• Additional family-care expenses

A personal accident benefit may provide an additional financial cushion, subject to the benefit limits and covered events.

Understand Its Limitations

Motor personal accident protection is not a complete substitute for:

• Medical insurance

• Life insurance

• Critical illness protection

• Disability-income protection

• Emergency savings

Review:

• Who is covered

• The benefit amount

• The number of covered passengers

• Age limits

• Excluded activities

• Whether benefits are fixed or reimbursement-based

Basic Comprehensive Protection Versus Optional Extensions

A comprehensive policy provides broad protection, but specific risks may require extra coverage.

Risk or Situation	Coverage to Review
Cracked or shattered vehicle glass	Windscreen Coverage
Flood, storm or landslide damage	Special Perils
Passenger makes a negligence claim against the driver	Legal Liability to Passengers
Driver or passenger suffers accidental injury	Personal Accident Benefits
Car cannot continue after an accident or breakdown	Towing and Roadside Assistance
Passenger’s negligent action harms another party	Legal Liability of Passengers
Smart key is lost, stolen or damaged	Key Care
Car remains in the workshop after an accident	CART or Transport Allowance
Several people regularly drive the car	All-Drivers Coverage
New parts are used to repair an older car	Waiver of Betterment

Availability, names, premiums and coverage conditions vary between insurers and takaful operators.

Which Options May Suit Different Malaysian Drivers?

Drivers in Flood-Prone Areas

Consider reviewing:

• Special Perils

• Towing assistance

• CART or transport allowance

Families Sharing One Vehicle

Consider reviewing:

• All-Drivers coverage

• Legal Liability to Passengers

• Legal Liability of Passengers

• Personal Accident benefits

Owners of New or High-Value Vehicles

Consider reviewing:

• Adequate windscreen coverage

• Special Perils

• Key Care

• Extended towing

• Passenger personal accident protection

Owners of Older Vehicles

Consider reviewing:

• Waiver of Betterment

• Roadside assistance

• Towing limits

• Current market or agreed value

• Cost-effectiveness of optional benefits

Salespeople and Business Owners

Consider reviewing:

• CART or transport allowance

• Extended towing

• All-Drivers coverage where employees use the car

• Personal accident protection

• Passenger-liability extensions

Drivers Travelling Outside Malaysia

Check:

• Geographical limits

• Cross-border passenger liability

• Towing availability

• Required endorsements

• Documentation required by the destination country

Do Not Select a Policy Based on Price Alone

Saving RM50 or RM100 during renewal may appear worthwhile.

However, an uncovered incident could cost much more:

• Thousands of ringgit for a windscreen

• Major engine and electrical repairs after flooding

• Legal costs involving passenger liability

• Smart-key replacement and programming

• Daily transport costs during workshop repairs

• Long-distance towing charges

• Betterment contributions for new parts

This does not mean every driver should buy every extension. The purpose of an insurance review is to identify the risks relevant to your circumstances and select benefits that provide reasonable value within your budget.

12 Questions to Ask Before Renewing

Before accepting a quotation, ask:

1. Is the car insured at an appropriate current value?

2. Is the settlement based on agreed value or market value?

3. Does the policy include Special Perils?

4. Is the windscreen amount sufficient?

5. Are tinting and sensor recalibration included?

6. Do I have both types of passenger-liability protection?

7. Who receives the personal accident benefits?

8. What towing distance and roadside services are provided?

9. Is my smart key covered?

10. How is CART calculated?

11. Are all regular drivers properly covered?

12. Could betterment apply, and is a waiver available?

Request written clarification and retain:

• The quotation

• Product disclosure sheet

• Policy schedule

• Full policy wording

• Endorsements

• Payment receipt

• Claims hotline details

• Roadside assistance contact

• Panel-workshop information

Frequently Asked Questions

Is flood damage automatically covered under comprehensive insurance?

Not necessarily. Flood protection is commonly provided through Special Perils or an equivalent optional extension. Check the policy schedule to confirm.

Does “comprehensive” mean every type of loss is covered?

No. Comprehensive insurance is broader than third-party cover, but it remains subject to exclusions, limits, excesses and optional extensions.

Are all family members automatically allowed to drive my car?

Not under every policy. Some policies cover named drivers, while others cover all eligible authorised drivers. Review the driver clause and applicable excess.

What is the difference between Legal Liability to Passengers and Legal Liability of Passengers?

Legal Liability to Passengers concerns a claim made by a passenger against the driver or policyholder.

Legal Liability of Passengers concerns a negligent act committed by a passenger that injures or causes damage to another party.

Does CART pay for every day my car is in the workshop?

Not necessarily. CART may be based on the repair duration assessed by an insurer or adjuster rather than the total calendar period.

Will a windscreen claim affect my No Claim Discount?

The answer depends on the policy and whether a windscreen extension is in force. Obtain confirmation from your insurer before submitting the claim.

What is betterment?

Betterment is a contribution that may be payable when a used component in an older vehicle is replaced with a brand-new part.

Is Waiver of Betterment automatically included?

Not always. It may be an optional extension or a built-in feature of selected enhanced motor plans.

Does All-Drivers coverage include an unlicensed driver?

No. An all-drivers provision does not override licensing requirements, policy exclusions or authorized-use conditions.

Conclusion

Car insurance should not be renewed purely according to price. Your vehicle, location, driving pattern, family circumstances and financial responsibilities may change from year to year. The protection you purchased several years ago may no longer suit the way you use your car today.

The 10 options worth reviewing are:

1. Windscreen Coverage

2. Special Perils Coverage

3. Legal Liability to Passengers

4. Legal Liability of Passengers

5. Towing and Roadside Assistance

6. All-Drivers Coverage

7. Waiver of Betterment

8. Key Care Cover

9. CART or Transport Allowance

10. Personal Accident Benefits

The right strategy is not necessarily to purchase every add-on. It is to understand your risks, compare the policy terms carefully and select coverage that is appropriate for your vehicle, driving habits and budget.

A proper review before renewal may prevent a major financial surprise after an accident, flood or breakdown.

Disclaimer:

This article is provided for general educational purposes only and does not constitute legal, financial or personalized insurance advice.

Coverage names, abbreviations, limits, premiums, exclusions, excesses, eligibility requirements and claim conditions vary between insurers, takaful operators, vehicle types and policy versions.

Policyholders should review the relevant quotation, product disclosure sheet, policy schedule, certificate, endorsements and full policy wording before purchasing or renewing coverage. Written clarification should be obtained from the insurer, takaful operator or authorized representative when any term is unclear.

Contact Y1Planning for a Motor Insurance Renewal

Y1Planning can help you review:

• Comprehensive Motor Insurance

• Windscreen Coverage

• Special Perils / Flood Protection

• Legal Liability to Passengers

• Legal Liability of Passengers

• Towing & Roadside Assistance

• All Drivers Coverage

• Waiver of Betterment

• Key Care Cover

• Personal Accident Benefits

• Optional Motor Insurance Extensions

• Sum Insured & Vehicle Value

• Policy Excess & Exclusions

• Existing Coverage Gaps

Don't choose your motor insurance based on price alone. Understand what you're actually protected for.

Contact YY LIM 012-2311 228 for a professional Motor Insurance Renewal.