Thinking of Car Insurance in Malaysia, most of us are still confused which insurance to choose. Here we compare 3 different types of Car Insurance in Malaysia, so that it is clearer and easier for everyone to choose the right car insurance.
3 Types of Car Insurance in Malaysia
| Insurance Policy | What is the benefits? | Disadvantages |
|---|---|---|
| Third party | Covers for Third-party bodily injury to a passenger or a person in the othercar | No coverage for injury or death on yourself and your passenger |
| Covers for damages to another person’s car | No coverage for medical expenses for injuries on yourself | |
| Covers for damages to another person’s property | No coverage legal fees for injuries on yourself | |
| No coverage on your car’s damages in accident caused by yourself | ||
| No coverage if your car is stolen, damaged or destroyed by fire | ||
| No coverage if your personal belongings are damaged | ||
| No coverage if your windscreen is damaged | ||
| Third party, fire, and theft (Second party) | Covers for Third-party bodily injury to a passenger or a person in the othercar | No coverage for injury or death on yourself and your passenger |
| Covers for damages to another person’s car | No coverage for medical expenses for injuries on yourself | |
| Covers for damages to another person’s property | No coverage legal fees for injuries on yourself | |
| Covers for if your car has been stolen | No coverage on your car’s damages in accident caused by yourself | |
| Covers for if your car is damaged by attempted theft (example: broken widnows, broken door locks, stolen audio and accessories. | No coverage if your personal belongings are damaged | |
| Covers for if your car is damaged by fire | No coverage if your windscreen is damaged | |
| Comprehensive (first party) | Covers for Third-party bodily injury to a passenger or a person in the othercar | No coverage for injury or death on yourself and your passenger |
| Covers for damages to another person’s car | No coverage if your personal belongings are damaged | |
| Covers for damages to another person’s property | No coverage if your windscreen is damaged | |
| Covers for if your car has been stolen | ||
| Covers for if your car is damaged by attempted theft (example: broken widnows, broken door locks, stolen audio and accessories. | ||
| Covers for if your car is damaged by fire | ||
| Cover for damages to your vehicle because of accident |
Basically, Car Insurance in Malaysia is divided into 3 types: Third party, Third party+fire+theft (also known as Second party) and Comprehensive (also known as First party).
In Malaysia, for new vehicle or vehicle under loan, it is compulsory to use Comprehensive Insurance. For vehicle that is no longer under loan, the vehicle owner can choose Third party or Second party insurance for their vehicle.
From table above, we can see that Car Insurance in Malaysia, Comprehensive Insurance covers almost everything except the following:
- No coverage for injury or death on yourself and your passengers
- No coverage if your personal belongings are damaged
- No coverage if your windscreen is damaged
So, bear in mind any injury or death on yourself and your passengers will not be covered, do not put your personal belongings in your car unattended as it will not be covered under the insurance and most importantly take good care of your car windscreen, if windscreen is damaged, you need to fork out extra money to pay for it yourself.
Do your own due diligence, choose your vehicle insurance wisely.