Car Insurances: What Are They for, Why Should I Get One and Which One Should I Choose?

Based on data provided by Malaysian official institutions, there were over 400,000 road accidents in our country in 2020, of which around 5,000 were fatal.

Although the number decreased in 2021 (370,286 cases), the amount of road  accidents is still concerning.

In fact, according to recent studies, Malaysia is the 12th country in the world with the most dangerous roads.

For that reason, every driver should get an adequate car insurance which fits their personal circumstances and demands.

Car Insurance in Malaysia

Types of Car Insurance Available in Malaysia

There are three types of insurance available in Malaysia, and here are their main characteristics:

1. Third Party Cover

A third-party cover is the cheapest and most basic vehicle insurance cover you can find in Malaysia.

This coverage protects only third parties, which means that it doesn’t cover you for any damages to your own person or vehicle.

Instead, it covers damages or losses to a third party’s property as a result of an accident caused by your vehicle.

In Malaysia, every driver is legally required to have at least a third-party insurance policy.

2. Third-Party Fire and Theft Cover

Third-party fire and theft covers are just like third-party covers, the only difference is that they also include additional protection against damage due to fire or theft.

Please note that this cover type covers any loss or damage caused by an accidental fire or theft, but not due to an actual traffic accident.

3. Comprehensive Cover

Comprehensive insurance coverage is the most complete vehicle insurance policy. In addition to providing cover for all that was mentioned previously, it also covers damages done to your vehicle.

It offers the same coverage as third-party, theft, and fire insurance policies with additional coverage on your own vehicle.

In other words, this type of insurance not only protects the third party but also protects the first party.

Common Misconceptions about Car Insurance Policies

There are some myths around insurance policies that might lead you to make the wrong decision when choosing an insurance policy.

For instance, some people think that the colour of their car will determine the price of the insurance policy, or that adding safety features will lower the insurance rates.

So, to clarify any doubts, here are some common misconceptions about car insurances: 

a. No-fault insurance doesn’t necessarily mean what you think

No-fault insurance does not mean you are not at-fault.

It means that you are required by law to hire an insurance policy that covers the cost of your medical bills and loss of pay if you are involved in an accident, even if the accident was your fault. 

b. Red cars are more expensive to insure

False. The colour of your car does not have an impact on car insurance rates. In fact, no study has shown that there’s correlation between car colour and insurance premiums.

c. Vehicles with advanced safety features get discounts on insurance costs

Most of the accidents that occur nowadays are actually caused by the driver. Either they got distracted texting, fell asleep on the wheel or simply were driving too fast.

So, even if you buy a car with all the latest safety features, your premiums may not go down if you have a bad driving record.

d. With age, insurance policies get more expensive

It is true that age plays a role in determining auto insurance costs.

However, even though drivers over 64 can expect to pay more for coverage, so can young drivers due to their lack of driving experience.

Remember that the best way to avoid an accident besides driving responsibly is keeping your vehicle in tip-top condition. 

Make sure to use our Tayaria dealer locator to get in touch with your local outlet to book an appointment.


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