Third Party Car Insurance: A Smart & Budget-Friendly Choice for Malaysian Drivers
Looking for cheap third party car insurance isn’t just about saving money — it’s about choosing the right protection that meets your needs and Malaysia’s legal requirements.
In this article, we’ll explain what third party car insurance is, who it’s best for, its pros and cons, and how to find the best deals.
What Is Third Party Car Insurance?
Third Party Car Insurance is the most basic and mandatory type of motor insurance required under the Road Transport Act 1987 in Malaysia.
It covers loss or damage suffered by third parties due to accidents involving your vehicle.
Coverage Includes:
Damage to third party vehicles
Injury to third party drivers or passengers
Death of third parties
Not Covered:
Damage to your own vehicle
Injuries to you or your passengers
Theft or fire involving your own vehicle
This type of policy is ideal for older cars or drivers with a limited budget.
Who Should Choose Third Party Car Insurance?
Third Party Insurance is most suitable for:
Car owners with vehicles over 10 years old
Drivers who rarely use their car (e.g., only on weekends)
Those who just want to comply with legal requirements
Advantages of Third Party Car Insurance
✅ Lower Premiums – The cheapest type of car insurance.
✅ Legally Required – Needed to renew your road tax (JPJ requirement).
✅ Simple Renewal Process – Easily done online with most insurers.
Disadvantages to Consider
❌ No compensation for your own vehicle damage.
❌ Not suitable for new or high-value cars.
❌ No protection against theft or fire.
How to Get?
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Is Third Party Insurance Safe and Reliable?
Yes — as long as you buy from licensed insurance providers approved by Bank Negara Malaysia and registered with PIAM (Persatuan Insurans Am Malaysia).
Some reputable providers include:
Expert Opinion
Financial experts agree that third party insurance offers good value for owners of older vehicles.
With lower annual premiums, you can redirect your savings toward car maintenance or emergency funds.
Conclusion
If you’re searching for cheap car insurance in Malaysia, make sure you:
Understand what’s covered
Choose a trusted insurer
Compare prices before deciding
For older vehicles or drivers looking to reduce yearly costs, third party insurance remains the most practical and affordable option.
Don’t wait until your current policy expires! Check your car roadtax price
