Third Party vs Comprehensive Car Insurance: Which One Should You Choose?

When it’s time to renew your car insurance, many drivers ask the same question:
Should I choose Third Party or Comprehensive insurance?

To help you decide, here’s a clear breakdown of both types of coverage — what they offer, how they differ, the cost difference, and which one might be right for you.

---

What is Third Party Insurance?

Third party insurance is the most basic and legally required insurance coverage in Malaysia. It only covers loss or damage caused to others if you’re at fault in an accident.

It does not cover your own vehicle under any circumstance.

---

What is Comprehensive Insurance?

Comprehensive insurance provides fuller coverage. It covers not only damage to other parties (like third party insurance) but also damage or loss to your own car due to accidents, fire, theft, and sometimes natural disasters (if you add optional add-ons).

---

Comparison: Third Party vs Comprehensive Insurance

---

Which One Should You Choose?

Your choice depends on your car’s age, market value, and how you use it:

• Choose Comprehensive Insurance if:
  
  • Your car is less than 10 years old
  • The market value is still high
  • You want full coverage for your own car and others
    
• Choose Third Party Insurance if:
  
  • Your car is more than 10 years old
  • The market value is low
  • You only want basic legal coverage at minimal cost
    

---

Is There a Price Difference?

Yes. Third party insurance is cheaper because it offers limited protection.
Comprehensive insurance costs more, but gives you peace of mind — especially if you’re still repaying a car loan or use your car daily.

Typical estimates:

• Third party insurance: RM300 – RM600 per year
• Comprehensive insurance: RM700 – RM2,000 per year (depending on car type and value)
  

---

Conclusion

There’s no one-size-fits-all answer. Here’s a quick guide:

• High-value or newer car? Go for Comprehensive Insurance
• Older, lower-value car? Third Party Insurance is usually enough
  

To get a personalised recommendation and instant quotes, visit BJAK and compare plans that suit your needs.

Read more:

Pacific Insurance Car Coverage – Is It Good Value for Your Money?

AIA Car Insurance Protection: What’s Offered & How to Apply?

QBE Car Insurance – A Niche but Solid Choice in Malaysia