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:
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.
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.
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:
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.
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.
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.
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.
