Third Party Car Insurance is one of several types of car insurance offered by insurance companies in Malaysia. As the name suggests, third party insurance provides coverage only to third parties involved in accidents caused by the car owner.
Third Party Car Insurance: What Important Things Do You Need to Know?
Insurance coverage is mandatory for all vehicles on the roads in Malaysia. Every vehicle must have at least Third Party Car Insurance coverage to enable the vehicle to be used on the roads legally.
If the car you are driving does not have insurance coverage, you may face enforcement actions such as fines or summonses by the Royal Malaysia Police (PDRM) or Traffic Department.
What is Third Party Car Insurance?
Third Party Car Insurance is one of the three types of car insurance offered by insurance companies in Malaysia. The other two types are Comprehensive Car Insurance and Third Party, Fire, and Theft Car Insurance.
In essence, Third Party Car Insurance provides coverage for claims made by third parties as a result of an accident caused by the car owner. This includes compensation for physical damage to the car, bodily injuries, medical expenses, vehicle repair costs, and third-party property damage.
What Protection Is Offered?
With a third party insurance policy, no claims can be made for damages to your own car if an accident is caused by you. This means that any damages to your car will have to be borne by you personally, and the insurance policy will only cover the compensation claimed by the third party (the party that was affected by the accident).
To help you better understand the coverage provided by Third Party Car Insurance, here are some examples of situations:
- Your car is severely damaged after hitting a traffic light pole, can you make a claim to repair the damages to your car if you have a third party insurance policy? – NO;
- Your car collides with an animal while driving, can you make a claim under third party insurance? – NO;
- Can you claim Third Party Car Insurance to repair damages caused by a fire? – NO;
- Your car is stolen, will the insurance company provide compensation if you have a third party insurance policy? – NO;
- If your car collides with another vehicle and sustains severe damage, can you make an insurance claim to repair the damages to your car? – NO;
- Can you make an insurance claim under a third party insurance policy if your car collides with another car and the affected party wants to make a claim? – YES, you can make a claim.
What Is The Price of Third Party Car Insurance?
Third Party Car Insurance is the most affordable insurance coverage and offers the most basic protection compared to the other types of car insurance.
Typically, the premium price for Third Party Car Insurance depends entirely on the insurance company – car insurance prices vary based on the type of vehicle, year of manufacture, driving habits, and other factors. For example, the minimum premium price for a Myvi car manufactured in 2005 with a car NCD rate of 55 percent is around RM209.
You can refer to your insurance company or visit the Qoala website, the best insurance comparison and renewal platform, for more information on the price of Third Party Car Insurance.
What Is The Process for Claiming Third Party Car Insurance?
When an accident involving your car and a third party occurs, the first step is to obtain the details of the third party, such as their name, phone number, car registration number, and insurance information.
After that, you can proceed with making a claim for Third Party Car Insurance by contacting your insurance company. You will need to provide details related to the accident, including:
- Date and time of the accident;
- Location of the accident;
- Information about the third party’s vehicle;
- Other relevant details.
Once you have made the insurance claim, the insurance company will investigate the accident and provide compensation to the third party if necessary. The process for claiming Third Party Car Insurance is usually faster compared to Comprehensive Car Insurance. This is because it involves fewer parties, only focusing on the claim against the third party.
Understand the Differences Between First Party Car Insurance and Third Party Car Insurance Before Purchasing Vehicle Insurance
First Party Car Insurance and Third Party Car Insurance are two different types of car insurance. First Party Car Insurance (or Comprehensive Car Insurance) offers a wider coverage of insurance protection compared to Third Party Car Insurance.
In addition to protecting against third-party liabilities, Comprehensive Car Insurance provides coverage for the vehicle owner against the risks of loss or damage to their own vehicle. First Party Car Insurance also protects the vehicle owner and their vehicle against various risks such as:
- Theft of the car;
- Fire damage to the car;
- Damage to the car due to flooding; and
- Vehicle damage caused by oneself or a third party in an accident.
Meanwhile, Third Party Car Insurance provides protection against third-party claims resulting from accidents caused by the car owner. This means that the insurance only covers damages to the third-party vehicle. Any costs for repairing damages to your own car need to be borne by the car owner.
To help you better understand, here’s an example. Ali has Third Party Car Insurance – while driving to work, Ali collided with the rear of Siti’s car. Since Ali has third-party insurance, Siti can make a claim against Ali’s car insurance – the cost of repairing Siti’s car will be covered by Ali’s insurance.
However, in Ali’s case, Ali has to bear the repair costs from his own savings. This is because Third Party Car Insurance only offers protection against third-party claims.
In simple terms, third-party insurance will only pay for the repairs to the car you collided with, and you cannot claim insurance for repairing your own car. When a claim is made against your insurance, your No Claims Discount (NCD) rate will become 0 percent in the following year.
|Type of Coverage||First Party Car Insurance||Third Party Car Insurance|
|Own Vehicle Damage||✓||✗|
|Damage to Car, Third Party Injury and Death||✓||✓|
|Towing Assistance||✓||Subject to certain fees|
|Additional Coverage||✓||Limited – windscreen and special perils cannot be added|
|Eligibility for Purchase||Owners who purchase a car with a bank loan are required to take this policy||Owners of vehicles aged 15 years and above|
Renew Your Car Insurance With Qoala For A More Secure Future Protection
For car owners, it is important to ensure that your car insurance is sufficient and active to protect you (and your assets) in case of roadside breakdowns, accidents, and other situations.
Whether you choose Third Party Car Insurance or Comprehensive Car Insurance, the selection between these two types of insurance depends entirely on your protection needs and financial capability.
If you prioritize more comprehensive and extensive coverage, Comprehensive Car Insurance is the more suitable choice. However, if you want to save costs, Third Party Car Insurance alone is sufficient to protect you from potential high-cost third-party claims.
Furthermore, if you want to obtain Third Party Car Insurance or Comprehensive Car Insurance for peace of mind while driving, visit the Qoala website for more information. Qoala is the best online insurance comparison platform in Malaysia. You can easily and quickly get the best car insurance in Malaysia at a reasonable price.