Introduction
In Malaysia when vehicle owners want to renew their vehicle insurance they’re faced with 2 options, Third party or comprehensive insurance. But how can you tell the difference between the 2 to know which suits you better. This article will be breaking down the difference so that you understand coverage types and make the smart choice based on budget and coverage type you actually require.
What Is Third Party Insurance
A Third Party plan is the basic coverage required by law for roadtax renewal. It only protects other people’s property or injury, not your own car.
Example:
If you hit another car, your insurer will pay compensation to that driver — but you’ll have to cover the repair costs for your own car.
Advantages:
- Lowest premium
- Ideal for older cars (10 years or above)
- Easy to get approved
Disadvantages:
- No coverage for your own vehicle
- No claim if your car is damaged
What Is Comprehensive Insurance
Comprehensive Insurance offers the most complete protection, covering both third-party damages and your own vehicle.
You can also add optional protection such as windscreen, flood, natural disaster, or driver coverage.
Example:
If your car gets into an accident, both vehicles will be repaired under your insurance.
Advantages:
- All-round protection
- Eligible for VIP Road Assist (like free towing via Bjak)
- Best for new or high-value cars
Disadvantages:
- Higher premium
- May require insurer approval for large claims
Quick Comparison: Third Party vs Comprehensive
| Aspect | Third Party | Comprehensive |
| Coverage | Third party only | Self & third party |
| Price | Low | High |
| Vehicle Protection | No | Yes |
| Add-ons (Flood, Windscreen) | Not included | Optional |
| Best For | Old cars | New / high-value cars |
Knowing to Switch from Third Party to Comprehensive
- When your car’s market value increases (e.g., after restoration or modification)
- You drive frequently in high-risk areas (city or highways)
- When you want extra coverage for natural disasters or theft
Conclusion
Having to choose between either third party or comprehensive really depends on your vehicle market value and the amount of coverage needed. Generally for older car drivers will shift to 3rd party coverage whereas newer cars or that are still able, will opt for comprehensive coverage for the best benefits.
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