There are three different types of car insurance in the market: Comprehensive, Third-Party, Fire & Theft (TPFT), and Third-Party Only (TPO). Under Malaysia’s Road and Safety Act, it is mandatory to have at least a TPO car insurance policy.
TPO is the most basic, and it covers any costs associated with you for damaging someone’s car and their medical expense. It is the best policy for anyone looking for cheap car insurance. TPFT is a middle-tier plan that extends coverage to losses due to accidental fires and theft. A comprehensive plan is the most common and well-rounded policy. It covers not only third-party, fire and theft liabilities, but also losses and damages to your passengers, vehicle, belongings and yourself.
If you are driving a vehicle that is older than ten years, you might want to switch to a lower-tiered plan to save money, as there’s a higher possibility of you scrapping your vehicle instead of repairing it after an accident.