Car insurance is compulsory for every car owner because it covers the liability you will have to pay to the third party in the event of an accidental death, bodily injury or damages to the car. Besides that, it is compulsory to have at least a Third Party plan in Malaysia to be able to renew your annual road tax.
Car insurance is compulsory for drivers in Malaysia whereas personal accident insurance is not necessarily required.
Car insurance provides coverage for any damages to your car, injuries or death of the third party, and damages to third party’s property or car whereas personal accident insurance provides coverage for you if you face an event which causes you injuries or death.
These are a few add-on coverage available:
Any damages to your car’s windscreen
Any damages to your car audio and accessories
Any damages to your car caused by natural disasters
Any damages to your car in the event of a strike, riot or civil commotion
Any liability claim from your passengers in the event of a car accident
Any compensation for the time your car is being repaired in the workshop
Complimentary car usage for as many times as you need, in the event of theft or accident.
However, not every insurance package will allow all the following add-on coverage. If you require any add-on coverage, make sure to choose an insurance policy that provides the add-on coverage that you require.
These are the types of car insurance available in Malaysia:
Third Party Coverage only is the cheapest and most basic insurance as it provides very minimal coverage in the event of an accident such as injuries, deaths or damages to the car. This insurance coverage will not protect you but instead, it will only protect the third party involved in the accident. You will not be able to claim for any damages made to your car, but you can claim for any compensation needed to be made to the third party.
Third Party, Fire and Theft
Like the Third Party Coverage, it covers any claims made against you by a third party in the event of an accident which cause bodily injuries, death, property loss or damage caused by your vehicle. Besides that, this insurance policy provides extra coverage on any damages made from a fire or theft of your vehicle.
Comprehensive Car Insurance
A Comprehensive Car Insurance has a wider protection coverage compared to the other packages. It has all the coverage in the Third Party, Fire and Theft Coverage but instead of covering only the third party, this insurance covers your vehicle too. You will be protected for any damages or loss caused to your vehicle which covers more than just fire and theft. However, not every car is applicable to this insurance as it depends on the car age.
Bear in mind that all the packages available does not provide protection for any injury or death that has occured to you (the driver or passenger of the policyholder).
There are several factors that will affect your car insurance premium:
Depending on where you live and buy an insurance policy determines your premium rate. Rates are generally higher in city areas compared to rural areas as city areas has a higher rate of accidents, theft, and vandalism. However, if your car is expensive, you will normally have a higher premium rate despite being in a rural area.
Age & Gender
Drivers who are younger and inexperienced will automatically have a higher risk to car insurance companies and will cause the inexperienced driver to have a higher premium rate. It is better to be licensed for a few years and have a clean driving record to have a lower premium rate. Besides that, women are generally safer drivers which allows them to get a lower premium rate compared to men.
Drivers who has a safe driving history typically get lower premium rates compared to drivers who has a history of accidents, speeding tickets and etc. To avoid getting a higher premium rate, pay attention to the road and avoid any accidents.
Type Of Motor Vehicle
Motor vehicles which are classified as intermediate-performance, high-performance, rear-engine models and sports vehicles will have a higher premium rate compared to average cars. This is because in the event of an accident, the cost of the vehicle repair will be more expensive.
Types Of Coverage
Depending on the coverage and benefits that is provided by your insurance policy determines the premium rate. The more the coverage and benefits, the higher the premium rates will be. Normally, if the insurance policy covers you and the third-party, it will cost more.
NCD is a discount for drivers who has not made any insurance claim during the preceding period of your insurance. NCD discounts will increase over the years, however, once you have made an insurance claim, you will lose your NCD entitlement. The amount of NCD you can receive depends on the type of vehicle, coverage, and the number of years you have not made a claim. Normally, private cars can get up to 55% of NCD. You can check how much NCD you are eligible to through this website:
You cancel your car insurance policy anytime you want by giving a written notice to the insurance company. However, you might have to pay a penalty fee if you were to cancel before the one-year period of your policy. You may be entitled to get a refund for your premium if no claims has been made before the cancellation.
You'll only be charged fees for the road tax renewal, service and delivery, as well as SST.
You can check your road tax delivery status by emailing us with your enquiry at email@example.com