{"id":17613,"date":"2021-05-04T20:00:00","date_gmt":"2021-05-04T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/car-insurance-types-and-coverage.html"},"modified":"2026-03-27T08:29:00","modified_gmt":"2026-03-27T00:29:00","slug":"car-insurance-types-and-coverage","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/insurance\/car-insurance-types-and-coverage.html","title":{"rendered":"3 Main Types of Car Insurance Coverage (And What They Actually Cover)"},"content":{"rendered":"\n

In Malaysia, there are 3 types of car insurance coverage, namely first party, second party, and third party. How do these car insurance policies stack up? Read more to find out the pros and cons before you decide to purchase.<\/strong><\/p> \n

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Take a stone and throw it in a car park full of drivers. Chances are, you\u2019ll hit one who doesn\u2019t know what their exact insurance policy covers.<\/p> \n

If you don\u2019t know what is insurance coverage, it\u2019s basically a contract between you and the insurance company that provides you with financial protection against physical damage or bodily injury. This protection will only be applicable for traffic or vehicle-related incidents, and comes at a premium which must be paid annually.<\/p> \n

It\u2019s completely mandatory for all drivers in Malaysia to get a valid car insurance policy. Without that, you won\u2019t be able to renew your road tax through the Road Transport Department (JPJ). And without your road tax, you won\u2019t be allowed to drive on Malaysian roads legally. If you get caught without a valid road tax, Section 14(4) of the Road Transport Act (RTA) 1987 would leave you with a fine of up to RM3,000.<\/p> \n

Legally, you\u2019ll be breaking the Road Transport Act 1987 and you can be fined up to RM1,000 and\/or spend up to three years behind bars. As we mentioned previously, there\u2019s a RM3,000 fine if you\u2019re caught driving without a valid road tax. Since you can\u2019t renew your road tax without first renewing your car insurance, you\u2019ll likely end up with both fines.<\/p> \n

But that\u2019s just the legal part of things. The other headache would come with the repairs. You will obviously have to fork out your own money to cover the costs of the damages to the other party (if you\u2019re in the wrong) and yourself. You may or may not also have to pay for treatments for bodily injuries.<\/p> \n

Not having a valid car insurance policy will eventually bite you back where it hurts (your wallet), so always make sure that your policy is up-to-date.<\/p> \n

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So\u2026 what does car insurance cover in Malaysia?<\/h2> \n

It all depends on the type of car insurance coverage you sign up for. There are three main types of car insurance in Malaysia: third party; third party, fire, and theft (a.k.a. second party), and comprehensive.<\/p> \n

If you\u2019re confused over these wordings, here\u2019s a quick overview of how insurance companies term them:<\/p> \n