Best Third Party Car Insurance in Malaysia 2024

Third Party Car Insurance in Malaysia

What is the most basic and cheapest car insurance I can buy?

A third party car insurance is the most basic car insurance policy with the minimum level of coverage, thus making it the cheapest car insurance Malaysia has to offer.

Simply, this is an insurance policy that indemnifies other people for the loss and damage to their vehicle, property and self due to an accident that is inflicted by you.

Essentially, having a third party car insurance policy is enough to give you the financial safety net against liabilities to the third party.

It ensures that the third party can claim for damage, loss or injury from you due to an accident caused by you.

What is a Third-Party Insurance?

In the world of insurance,

First Party - you (the driver)
Second Party - Insurance company
Third Party - Everyone else

What is covered by third-party car insurance?

For instance, let’s say you accidentally drive into the back of someone’s car and injuring the driver, your third-party car insurance will go toward covering the other person’s car repairs costs and medical expenses incurred.

Third party car insurance covers you for:

Third-party bodily injury to a passenger or a person in another car
Damage to another person’s car
Damage to another person’s property

Generally, the duration of cover is one year which is renewed annually.

What is not covered by third party car insurance?

With a third party car insurance, you cannot claim compensation for the damage to your own vehicle, property or any injury you suffer as a result of the road accident.

Third party 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 car is stolen, damaged or destroyed by fire
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.

What is the difference between third party and comprehensive car insurance?

If you want coverage for your own car’s damages and injuries you suffer due to an accident, comprehensive car insurance will be a better option.

On top of that, you will also get coverage for the third party’s injury and property damage or loss.

Having said that, there is always the flexibility of adding coverage (higher premiums) on top of your third party coverage based on your individual needs.

For example, Takaful myMotor Third Party offers optional coverage for your car’s windshield, special perils, civil commotion and even legal liabilities to your passengers (yes, your passengers can sue you!).

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 car insurance for me?

Indicators that a third party 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 Hire Purchase or a Car Loan

While third party car insurance comes with a cheaper 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 car insurance cover.

What is a “loading excess”?

Also known as “premium load” or “vehicle age loading”, is an extra amount added to the premium where the higher the premium, the higher the risk you portray.

If you are driving an older car and looking for a third party car insurance, there is an additional loading excess or fee being imposed by car insurance companies based on the vehicle’s age.

Loading excess ranges between 5% to 30% on top of premiums.

Vehicles age 15 years and above are usually not insured by most insurance companies.

It is essentially on the assumption that older vehicles are more accident-prone due to wear and tear.

The way around it is to stick with one insurer for your annual policy renewal, add on non-motor insurance coverage and maintain a good track record.

How can I save money on third party 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 car insurance might cost.

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

How do I apply for a third party car insurance?

You can compare and apply for third party car insurance online!

Apply online now via RinggitPlus!

There are a few things that need to be kept in mind when applying for a third party 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.