Comprehensive Car Insurance

Comprehensive car insurance covers your own vehicle and your liability to other people in one policy. PIAM's Motor Insurance Types & Coverage in Malaysia guide defines it as cover "against liabilities to third party for bodily injury, death and property damage, loss or damage to your vehicle due to accidental fire, theft or an accident, 24-hour breakdown services/towing and warranty for workmanship on repairs". Zurich's puts it as protection "against financial losses resulting from accidental damage, fire, or theft of your vehicle".

In everyday Malaysian usage it is also called first party insurance (the first party - you - gets paid) as opposed to third party cover, which pays only others.

"Comprehensive" describes the range of perils, not the amount. The payout for your car is capped at its sum insured, and several everyday perils are still excluded unless you add them - the next two sections are the ones to read before you assume you are covered.

Your own car

• Accidental collision or overturning, whoever is at fault
• Fire, lightning and explosion
• Theft, attempted theft and malicious damage (wording varies)
• Repair at a panel workshop with a workmanship warranty (Liberty: 3 years)
• Total loss paid at market value or sum insured, whichever is lower

Other people

• Death or bodily injury to third parties - unlimited
• Damage to third-party property - up to RM3 million (Liberty, Tokio Marine)
• Legal costs of defending a claim

Bundled by partners

• 24-hour towing - RM200 to RM400 or 50 to 150 km per breakdown/trip depending on partner
• Roadside assistance: jump start, flat tyre, fuel delivery, locksmith with several partners
• One or more additional named drivers; all drivers with three partners
• Personal Accident with Takaful Malaysia (RM15,000) and Liberty (RM10,000)

Always available to add

• Flood and special perils, windscreen, all drivers, NCD relief, CART, key replacement, waiver of betterment, EV charger cover - see the add-ons table below

Excluded unless you add it

• Flood, storm, typhoon, landslide - "convulsions of nature" (Liberty) - needs Special Perils
• Windscreen and glass without NCD impact - needs windscreen cover
• Your own death, injury or medical bills - needs Personal Accident
• Claims from passengers in your car - needs Legal Liability to Passengers
• Strike, riot and civil commotion - separate add-on

Excluded outright

• Wear and tear, rust, corrosion, mechanical or electrical breakdown
• Losses while the driver is under the influence of alcohol or drugs
• Losses caused by an unlicensed or unauthorised driver
• Use outside the policy's stated purpose - e-hailing or hire without the endorsement
• Depreciation and consequential loss

Common add-ons on Malaysian comprehensive policies, with published rates where partners state them.

While comprehensive premiums were tariffed by Bank Negara Malaysia until July 2017, the market has since advanced into Phase 2B of the phased liberalisation of motor tariffs. Today, insurers have greater flexibility to price based on their own view of risk and bundle innovative add-ons. The inputs on a Malaysian quote today:

• Sum insured - the car's market value from the ISM-ABI valuation system, or an agreed value. The single largest driver.
• Engine capacity and, for EVs, motor output.
• No Claim Discount (NCD) - 0%, 25%, 30%, 38.33%, 45%, then 55% from the sixth claim-free year. Applied after the base premium.
• Risk profile - driver age, claims history, vehicle age, location, usage (private, e-hailing, company), safety features.
• Add-ons - each priced as above.
• Service Tax & Stamp Duty - an 8% Service Tax (effective March 2024) and a standard RM10 stamp duty on top.

Because insurers weight these differently, the same car gets materially different quotes - BJAK's comparisons have shown one partner at RM780 and another at RM1,140 for an identical car and NCD. Comparing is the only reliable way to price comprehensive cover; the insurance calculator gives an estimate, the quote page gives the real numbers from all partners.

Compulsory excess RM400

Charged on an own-damage claim if the driver was under 21, on a P or L licence, or not named on the policy. All Drivers cover removes the last trigger only. Voluntary excess - a higher amount you agree to bear for a lower premium - is added on top.

Betterment

On a car aged five years or more, replacing worn parts with new original parts "betters" the car, and you pay a percentage of the new-part cost scaled by the car's age (Liberty PDS). It can be waived for a premium, though insurers typically cap this waiver to vehicles up to 10-15 years old. It is worth pricing on any 5-10 year old car you intend to repair properly.

NCD

One own-damage or third-party claim resets your discount to 0% at the next renewal (Berjaya Sompo: "you will lose your entire NCD entitlement"). Windscreen-only claims under the add-on do not. NCD relief protects one claim a year. Check your current entitlement on the NCD checker.

The base cover is regulated and near-identical. Partners compete on what they bundle in, and on the name of the plan you will see on your quote.

Comprehensive

Any car you could not replace from savings; every car on hire purchase; daily drivers; anyone who wants flood, windscreen or all-drivers cover. Cars under about 10-15 years old almost without exception.

Third Party, Fire & Theft

An older, low-value car you own outright, where you would pay accident repairs yourself but still want theft and fire covered. TPFT guide.

Third Party

A very old car worth little, owned by someone who can absorb a total loss. Subject to insurer approval. Third party guide.

All four cover types on one comparison table: types of car insurance in Malaysia.

• Types of car insurance - All four covers compared
• Third Party, Fire & Theft - The step down from comprehensive
• Special perils (flood) cover - The add-on every comprehensive policy should have
• Sum insured - The number your payout is capped at
• Market value vs agreed value - Which payout basis to choose
• NCD checker - Up to 55% off - check yours