Introduction
All drivers face the same issues when renewing car insurance which is “Third Party vs Comprehensive” and what are the differences? Both coverages have their pros and cons but it all depends on the individual’s needs & budget. This article will assist in helping you understand the difference between the 2 coverages before purchasing your insurance policy.
Cost & Premium Range
Third party coverage is the cheapest, usually ranging between RM300 – RM600 per renewal. The price depends on your car’s make, model, and current market value. Furthermore, the protection is very limited as It only covers damage or loss caused to other people’s vehicles or property. Any repairs to your own car? You’ll need to pay out of pocket.
On the other hand, comprehensive coverage is typically required for newer cars, with premiums often exceeding RM1,000 depending on brand, model, and value. While pricier, it protects both your car and third parties — which could save you tens of thousands if a major accident or disaster occurs.
Example: If a car worth RM60,000 suffers severe flood damage, a third party policyholder cannot claim compensation. Repair costs could be around RM20,000. With comprehensive insurance, the loss is absorbed by the insurer.
Common Misconceptions
- “Third party is always smarter for older cars.”
Not necessarily. If Car has higher market value or located in natural disaster / high theft areas, comprehensive coverage is the best option. - “Comprehensive is too expensive.”
Premiums can be managed. You can use your NCD (No Claim Discount), compare insurers via platforms like Bjak, or choose only the add-ons you truly need.
Pros & Cons
| Policy Type | Advantages | Disadvantages |
| Third Party | Lower premiums, suitable for older low-value cars, easy renewal process | No protection for your own car, major financial risk if flood/theft/accident occurs |
| Comprehensive | Covers both your car & third parties, includes accidents, theft, fire, natural disasters | Higher premium, some add-ons must be purchased separately |
Conclusion
“Third Party vs Comprehensive” the choice all comes down to the vehicle’s value and your risk tolerance. Knowing the difference between the 2 coverages will allow you to make the wiser financial decisions when purchasing your policy, and with Bjak you can easily compare those differences that fit your budget and needs.
Read More:
Young Malaysian Drivers’ Choices For Best Car Insurance
