{"id":18163,"date":"2021-05-04T20:00:00","date_gmt":"2021-05-04T12:00:00","guid":{"rendered":"https:\/\/www.comparehero.my\/blog\/uncategorized\/car-insurance-work-malaysia.html"},"modified":"2026-03-27T08:29:00","modified_gmt":"2026-03-27T00:29:00","slug":"car-insurance-work-malaysia","status":"publish","type":"post","link":"https:\/\/www.comparehero.my\/blog\/insurance\/car-insurance-work-malaysia.html","title":{"rendered":"How Does Car Insurance Work in Malaysia?"},"content":{"rendered":"\n

Renewing car insurance is one of those routine things Malaysians do annually, but do you really know how it works or what it means to have car insurance?<\/p> \n

What is car insurance?<\/h2> \n

Well, car insurance<\/a> is designed to protect you financially against the risk of getting involved in an accident and having to pay a huge lump sum of money over the physical damage and vehicle repair costs.<\/p> \n

Before Bank Negara announced the liberalization of the car insurance sector, which will take effect on 1 July 2017, local auto insurance was once standardized with the same price and coverage details.<\/p> \n

While the outlook of car insurance after liberalization comes into effect is still unclear, you might want to familiarize yourself with the types of car insurance in Malaysia and your claim entitlements in different scenarios.<\/p> \n

\"\"<\/p> \n


Click here to purchase or renew your car insurance and get eVouchers worth up to RM200 for FREE!
<\/a><\/p> \n

In general, there are three types of car insurance available:<\/h2> \n

1. Third party coverage<\/h3> \n

This is the most basic and common car insurance bought by car owners as it is mandatory to have this type of car insurance for every vehicle. Having this insurance coverage allows car owners to be protected from having to pay the damages of another car in the event of an accident.<\/p> \n

2. Third-party, fire, and theft coverage<\/h3> \n

Other than third party coverage, the car owner will be entitled to claim for their own vehicles damage caused by fire or theft.<\/p> \n

3. Comprehensive coverage<\/h3> \n

Car owners are entitled to claim not only for a third party\u2019s physical and vehicle\u2019s damage repair costs but their own as well. On top of that, they are entitled to fire and theft coverage too. Usually, car owners of expensive vehicles will sign up for this type of insurance plan.<\/p> \n

Related: <\/strong>3 Main Types of Car Insurance Coverage (And What They Actually Cover)<\/a><\/p> \n

Here is a better view of the three types of car insurance in Malaysia:<\/strong><\/p> \n \n \n \n \n \n \n \n
 <\/td> \n Third party cover<\/strong><\/td> \n Third party, fire & theft cover<\/strong><\/td> \n Comprehensive cover<\/strong><\/td> \n <\/tr> \n
Liabilities to
third party for:
– Injury
– Death
– Property loss\/damage<\/td> \n 		Yes<\/td> \n Yes<\/td> \n Yes<\/td> \n <\/tr> \n
Loss\/damage to own
vehicle due to accidental
fire\/theft<\/td> \n 		No<\/td> \n Yes<\/td> \n Yes<\/td> \n <\/tr> \n
Loss\/damage to own
vehicle due to the accident<\/td> \n 		No<\/td> \n No<\/td> \n Yes<\/td> \n <\/tr> \n
Liabilities to driver &
the passenger of their own vehicle
(property, bodily Injury,
death)<\/td> \n 		No<\/td> \n No<\/td> \n No<\/td> \n <\/tr> \n <\/tbody> \n<\/table> \n

However, you need to know that your standard motor insurance policy DOES NOT cover:<\/p> \n