Types of Motor Insurance
Third Party Cover
Third Party Cover is the minimum cover that LTA allows for any vehicle on the road. This policy is not allowed for vehicles still under financing – lenders require comprehensive insurance for the full period of the loan.
This policy gives the driver of the car the least protection in case of an accident. It does not cover the cost of repair for his own vehicle but will cover damage to the third party vehicle and other property, including items such as street furniture (road signs, traffic lights, pedestrian fences, bus stop shelters and so on). Injury or death caused by the driver to third parties are also covered.
Third Party, Fire and Theft
Other than the cover afforded by third party only insurance, this policy will also protect the insured against damage to his car caused by vandalism, fire and loss of car due to theft.
Most policies should also cover the loss of personal effects should they be damaged or stolen from a properly secured/locked car.
This type of cover gives the most protection in the event of any accident and other than the above mentioned coverage for the two other types, will also pay for the driver to repair his own vehicle including spare parts and accessories, but payout may be subject to the minimum co-insurance – called excess – that may be payable by the driver. This excess amount may be higher if the vehicle is driven not by the driver but by another person authorized by the main insured named in the policy.
Medical expenses of the driver are also covered.
The car will also be covered for when travelling to West Malaysia and to Southern Thailand (within 50 miles of the West Malaysian border).
Most insurance firms provide optional extras, some which are free, but others which will cost additional. These may include:
- Windscreen Replacement (usually free)
- Own workshop preference
- NCD protection
- Cover up to full value of damage, i.e. No excess
- Replacement vehicle use in case accident vehicle cannot be driven
The above are only some of the optional extras that are offered with the policies from insurers we work with. Do check with our insurance consultant who will serve you for the details of your cover.