Best Third Party, Fire and Theft Car Insurance in Malaysia 2024

Third Party, Fire and Theft Car Insurance in Malaysia

As suggested by its name, the third-party, fire and theft car insurance policy covers more than a third-party-only policy.

The third-party, fire and theft policy offers the same coverage as the third-party only policy but with added coverage for damages from accidental fire and theft of your vehicle.

With added coverage, the third-party, fire and theft policy is relatively pricier than the third-party-only policy but more affordable as compared to the comprehensive cover.

What is covered by the third party, fire and theft car insurance policy?

On top of covering the same level of protection as third-party car insurance, it also covers your car in the event that it’s accidentally stolen, damaged or destroyed by fire.

You are only able to make a claim in the event where:

Your car has been stolen
Your car is damaged by attempted theft (for example, broken door locks, windows or stolen audio and accessories.
Your car is damaged due to a fire

With Tokio Marine Third Party Fire and Theft Motor Insurance, you can also opt for additional benefits such as passenger liability cover (yes, your passengers can sue you!).

Similar to the third party policy, you will have to renew your third party, fire and theft car insurance policy annually.

*For a refresher, check out what Third Party Car Insurance coverage is here.

What is not covered by the third party, fire and theft car insurance policy?

Just like the third-party insurance policy, the third-party, fire and theft car insurance won’t cover any loss or damage to your own vehicle, or property or any injury you suffer as a result of the road accident.

Third-party, fire and theft car insurance does not cover for:

Medical expenses for your own injuries
Legal fees for your own injuries
Your car’s damages in an accident you caused
Your personal belongings are damaged
Your windscreen is damaged

You might want to opt for a Comprehensive Car Insurance to have coverage for your own car or injuries you suffer.

How is this policy different from comprehensive car insurance?

This third-party, fire and theft car insurance policy is an extension to the basic car insurance policy but without coverage that protects or covers the loss or damage to your own car and first-party personal accident.

These benefits are what make third-party, fire and theft car insurance slightly cheaper from a comprehensive cover.

Since it’s a lower level of protection as compared to a comprehensive cover, the premium charged is on average 25% cheaper.

Differences in the Types of Car Insurance in Malaysia:

	Third-Party	Third Party, Fire & Theft	Comprehensive
Bodily injury caused to 3rd party	Yes	Yes	Yes
Damage & loss to 3rd party property	Yes	Yes	Yes
Damage & loss to your car	No	No	Yes
Fire & theft to your vehicle	No	Yes	Yes
Relative cost of premium	Cheap	Average	Expensive

Is third-party, fire and theft car insurance for me?

Indicators that a third party, fire and theft car insurance might be more suitable for you:

Your car is not brand new
Your car is an older model where it is inexpensive to repair
You are no longer under a financing agreement, such as a Hire Purchase or a Car Loan

While third-party, fire and theft car insurance comes with an average price tag, be reminded that you will be footing the bill for the damages incurred on your own car.

So be sure that your car is not a new and expensive model, where the high repair costs would negate all the savings you made by choosing a third party, fire and theft car insurance cover.

What is a “Policy Excess Fee”?

You will come across the term “Policy Excess Fee” in your insurance policy.

This fee indicates an amount that you need to top up from your own pocket when making accidental claims.

For example, let’s say your Policy Excess Fee is at RM200 and damages to your car are RM4,000. You are only entitled to claim a total of RM3,800 with a loss of RM200.

Hence, it’s vital to choose a policy with low to no Policy Excess Fee for better savings!

How else can I save money on third-party, fire and theft car insurance?

As car insurance policies are priced based on risks, it is important to disclose all material facts such as previous accidents, no claims history and modification to engines to get a better idea of how much a third party, fire and theft car insurance might cost.

This is because of driving history and other personal information will directly affect pricing.

How would third-party, fire and theft policy compensate for my stolen car?

The standard practice for stolen cars or total loss claims is to compensate the first party (policyholder) based on the market value of the car at the time of loss (or damage), or the sum agreed in the policy, whichever is lower.

The agreed car value can also be specified in advance versus the market or resale value.

However, the nature of the theft plays a vital role in determining if it’s an act of negligence or purely an accident.

Let’s say you hand over your car keys to the carpark jockey and your car gets stolen, it will be considered as an act of negligence and the insurance company will not compensate you for the loss.

How do I apply for third-party, fire and theft car insurance?

You can compare and apply for third-party, fire and theft car insurance online!

Apply online now via RinggitPlus!

There are a few things that need to be kept in mind when applying for third-party, fire and theft car insurance online in Malaysia:

Market Value of the car. If the car is new, the insured value will be equal to the purchase price.
No Claim Discount (NCD) percentage. Choose a sustainable claim amount that is both affordable when it comes to paying the premiums and at the same time gives you a comfortable claim amount when an accident happens.
Disclosure. Ensure that you give all the information about the car and your driving history in detail. This is essential in setting the right amount for coverage.
Prepare Documents. Once you have decided on the insurance policy, prepare the necessary documents which include an insurance cover note, car grant and existing insurance policy (if applicable).

If you have the documentation ready, the application time will only take a few minutes.