3 Types of Car Insurance in Malaysia

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.

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Types of Car Insurance in Malaysia
Types of Car Insurance in Malaysia

3 Types of Car Insurance in Malaysia

Insurance PolicyWhat is the benefits?Disadvantages
Third partyCovers for Third-party bodily injury to a passenger or a person in the othercarNo coverage for injury or death on yourself and your passenger
Covers for damages to another person’s carNo coverage for medical expenses for injuries on yourself
Covers for damages to another person’s propertyNo 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 othercarNo coverage for injury or death on yourself and your passenger
Covers for damages to another person’s carNo coverage for medical expenses for injuries on yourself
Covers for damages to another person’s propertyNo coverage legal fees for injuries on yourself
Covers for if your car has been stolenNo 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 fireNo coverage if your windscreen is damaged
Comprehensive (first party)Covers for Third-party bodily injury to a passenger or a person in the othercarNo coverage for injury or death on yourself and your passenger
Covers for damages to another person’s carNo coverage if your personal belongings are damaged
Covers for damages to another person’s propertyNo 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).

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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.

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