Best Car Insurance in Malaysia

Best Car Insurance Malaysia
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If you are fresh out of driving school, you are probably excited to start driving on the road. When you do get a new car, however, you are going to need more than just your license. It is necessary to obtain a suitable car insurance, as outlined in the Road Transport Act 1987.

Having car insurance is not merely a regulation you have to fulfill, it is also a much-needed form of protection. This is especially true for Malaysian road users, as over 500,000 road accidents have been reported in 2018.

Although purchasing car insurance may take a toll on your wallet, it is a smart investment. Your future self will definitely thank you if you do get involved in an accident of any form, as you will be able to count on your insurance policy to cover the costs of any repairs. The next question is: Which is the best car insurance in Malaysia?

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Types of Car Insurances Available in Malaysia

Firstly, let us explore the three types of insurance available in Malaysia:

  • Third-Party Cover – Cheapest among the three types here, this insurance offers the most basic form of car insurance. A distinct characteristic of this insurance is that it covers any third-party claims. This insurance covers claims made for bodily injuries or deaths, including any damage to the third party’s vehicle or property. However, it does not cover for any damages to yourself or your vehicle.
  • Third-Party Fire and Theft – For the most part, this insurance works similarly to third-party cover insurance, but it has an added bonus. This insurance allows you to make a claim if your car suffers from fire damage or is stolen. In some instances, you may also make claims for damage done to your vehicle in an attempt of theft.
  • Comprehensive Cover – This insurance provides the most extensive coverage. Not only does it cover all aspects of the two aforementioned car insurances, but it also covers damages to your own car. As expected, this option is the most expensive out of the three. However, this insurance is definitely suitable for those who cannot afford to replace their vehicles easily. In the case where your vehicle has sustained irreplaceable damage, you will be provided with the cash equivalent to the replacement value (current market value) of your car. This will at least enable you to buy another vehicle.

In short, the comprehensive cover is ideal for those looking for full coverage insurance. Now, let us help you decide which full coverage car insurance in Malaysia is the best.

1. Etiqa Comprehensive Private Car Insurance

This car insurance provides a comprehensive protection plan, as it covers both damages to you and your car, as well as third-parties.

The losses covered by this insurance plan is not only limited to collision damages, but also fire accidents, mechanical breakdown, and gradual wear and tear. The details of the coverage are as follows:

  • Bodily Injury – Covered
  • Loss or Damage to Your Own Vehicle – Covered
  • Loss or Damage of Property – Covered
  • Legal Costs (lawyer fees when you’re the defendant in court) – Up to RM2,000
  • Accidental Death – Covered
  • Compensation for Assessed Repair Time (CART) – Up to RM200
  • Compensation for Loss of Use (CLU) – Up to RM200
  • Add-on Coverage:
    • Windscreen (Claim without losing NCD) – Covered
    • Car Accessories (Claim for a stolen stereo or custom rims without losing your NCD) – Covered
    • Special Perils Cover – Covered
    • Strike, Riot, and Civil Commotion – Covered
    • Legal Liability to Passengers – Covered
    • Compassionate Flood Expenses – Covered

However, this does not mean that any form of damage can be compensated. Claims for losses caused by your negligence or irresponsible road behaviour may be rejected.

This includes accidents caused by the influence of alcohol and participation in unlawful activities such as illegal racing.

2. AmGeneral Private Motor Insurance

AmGeneral Private Motor Insurance is a comprehensive car insurance that covers for any injury or death caused to third party individuals, damages to your own vehicle from accidental collisions and other perils such a fire, as well as burglary and theft. Additionally, this insurance does not impose a monetary limit for coverage, making it a worthy contender for the title of best car insurance in Malaysia.

The details of this insurance are as follows: 

  • Bodily Injury (Own and third-party’s) – Unlimited coverage
  • Loss or Damage to Your Vehicle (Claim if your car has been stolen or wrecked due to road accident or fire) – Covered
  • Loss or Damage of Property – Covered
  • Accidental Death – Unlimited coverage
  • Add-on Coverage:
    • Windscreen (without losing NCD) – Covered
    • Car Accessories (Claim for a stolen stereo or custom rims without losing your NCD) – Covered
    • Special Perils Cover (floods, typhoons, and landslides) – Covered
    • Strike, Riot, and Civil Commotion – Covered
    • Legal Liability to Passengers – Covered

Although this insurance plan offers unlimited coverage in terms of bodily injuries and accidental death, it does not account for any depreciation, wear, rust, or mechanical breakdown—as they believe that it is the result of the negligence of care for your car.

However, you cannot claim for damage done to your car tires alone as coverage will only be provided if the body of the vehicle also sustains damage.

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3. HSBC Comprehensive Car Insurance

Having AXA Affin as the underwriter, the central area of coverage for HSBC Comprehensive Car Insurance would be loss or damage to your vehicle.

The areas covered are accidental fire, theft, or accident, as well as your liability or any insured drivers’ liability to third parties for bodily injury, death, property loss or damage.

The specific details of this insurance plan are as follows:

  • Bodily Injury – Covered
  • Loss or Damage to Your Own Vehicle (Claim if your car has been stolen, or wrecked due to road accident or fire) – Covered
  • Loss or Damage of Property – Covered
  • Accidental Death – Covered
  • Add-on Coverage:
    • Windscreen (Claim without losing NCD) – Covered
      • Car Accessories
    • Claim for a stolen stereo or custom rims without losing your NCD  Covered
    • Special Perils Cover (floods, typhoons, and landslides) – Covered
    • Strike, Riot, and Civil Commotion – Covered
    • Legal Liability of Passengers (Protection against both bodily injuries caused by passengers as well as legal action brought against you by your passengers) – Covered

Another added advantage to this insurance plan is that there are no specific instances where your claims will be rejected, where it covers for a variety of situations on and off the road.

Some examples of such include breakage of glass in windscreen, current year NCD relief, and damage to vehicle accessories.

4. Hong Leong Comprehensive Motor Insurance

If the helplessness you feel when your car breaks down in the middle of a busy highway road is something you don’t wish to experience, then the Hong Leong Comprehensive Motor Insurance is for you. What makes this insurance plan unique is its dedicated motor assist hotline.

You can rest assured as motor assistance will come to your aid to repair a minor breakdown or to tow your vehicle to a nearby MSIG panel workshop for further inspection—offering instant access to trusted mechanics. The other details of this insurance are as follows:

  • Bodily Injury – Unlimited coverage
  • Loss or Damage to Your Own Vehicle (Claim if your car’s been stolen or wrecked due to road accident or fire) – Covered
  • Loss or Damage of Property – Up to RM3 million
  • Legal Costs (Lawyer fees when you’re the defendant in court) – Up to RM2k
  • Accidental Death – Unlimited coverage
  • Add-on Coverage:
    • Windscreen (Claim without losing NCD) – Covered
    • Special Perils Cover (floods, typhoons, and landslides) – Covered
    • Strike, Riot, and Civil Commotion – Covered
    • Legal Liability of Passengers (Protection against both bodily injuries caused by passengers as well as legal action brought against you by your passengers) – Covered
    • Compassionate Flood Expenses – Covered

When purchasing this insurance, an important thing to note is that you are responsible for disclosing all accurate and complete information such as past claims experience and your details. The first thing you should do if there are any changes in your particulars is to contact Hong Leong Bank.

In making claims for an accident, you will have to report to Hong Leong Bank with the details of the accident within 7 days, or 30 days if you have been hospitalised or are physically unable to. The details include the involved personnel, date of the accident, and a brief description of what happened.

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5. MSIG Comprehensive Motor Insurance

Offering 24-hour roadside assistance and on-site repair services with a 6-month warranty, MSIG Comprehensive Motor Insurance promises to get you back on the road fast whenever your car breaks down, making it one of the best car insurance packages in Malaysia.

This insurance also provides extensive coverage as stated below:

  • Bodily Injury – Unlimited coverage
  • Loss or Damage to Your Own Vehicle (Claim if your car’s been stolen or wrecked due to road accident or fire) – Covered
  • Loss or Damage of Property – Up to RM3m
  • Legal Costs (Lawyer fees when you’re the defendant in court) – Up to RM2k
  • Accidental Death – Unlimited coverage
  • Add-on Coverage:
    • Windscreen (Claim without losing NCD) – Covered
    • Special Perils Cover (floods, typhoons, and landslides) – Covered
    • Strike, Riot, and Civil Commotion – Covered
    • Legal Liability of Passengers (Protection against both bodily injuries caused by passengers as well as legal action brought against you by your passengers) – Covered

On the other hand, there are also general exclusions for this insurance. Generally, this insurance does not account for your physical well-being, theft of non-factory fitted vehicle accessories, wear and tear, and depreciation of your vehicle.

You will also have to take on a penalty of RM400 in the case where you attempt to pocket a claim under circumstances that breach the contract.

Some examples of this are if your vehicle is being driven by a person not covered under your insurance, a person below the age of 21, a driver with an L license, or a driver who has had a full driver’s license for less than two years.

Now that you have a clear idea of what types of car insurance packages are available in Malaysia, we hope you are ready to take this step to keep you safe on the road!

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