It’s confusing to choose the right insurance policy for an old car in Malaysia, especially when the market value of your car has dropped and the insurance premium no longer seems worth it.
Many Malaysian drivers own vehicles that are 10 years old or older, and they are finding the most cost-effective insurance policy to avoid overpaying while staying protected on the road.
This guide explains the best insurance options for old cars in Malaysia, including how to choose the right coverage, along with money-saving tips.
What Insurance Policy Is Best for Old Cars in Malaysia?
For cars 10 years and older, the most suitable types of insurance are:
- Third Party, Fire & Theft
This is the most practical option for many older vehicles.
It covers:
✅Damage to other people’s cars or property
✅Fire damage
✅Theft of your vehicle
🌟Ideal for vehicles that have a low market value yet still need a level of protection that exceeds basic third-party coverage.
- Third Party Only
This is the minimum insurance required by law in Malaysia. Also, it’s the most affordable choice, yet repairs for your own vehicle will be at your expense.
It covers:
✅Damage inflicted on another individual’s vehicle
✅Third-party damage or injury.
🌟Ideal for vehicles that are very old (15-20+ years) or those with significantly low resale value.
- Comprehensive Insurance
Some insurers allow cars older than 10 years to remain under comprehensive coverage.
It covers:
✅Your own vehicle damage
✅Third-party damages
✅Theft & fire
✅Eligible add-ons (windshield, flood, special perils, etc.)
🌟Ideal for old cars that are still in good condition and retain value, or for preventing accident damage.
Why Old Cars Should Switch from Comprehensive to Third Party, Fire & Theft or Third Party Only?
Here’s why many Malaysian car owners downgrade coverage as their cars age:
- High premium
Insurance payouts are based on market value, not what you paid initially. It doesn’t make sense to pay RM1,200 or more for comprehensive insurance for a car valued at RM3,000 to RM5,000.
- Higher Repair Costs
It might be hard to find components for older cars, which can make repairs very expensive. A minor accident could cost more than the car is worth, making full coverage less beneficial.
- Insurance Companies Limit Coverage
Many insurance companies restrict comprehensive insurance for cars that are more than 10 to 15 years old unless you keep them in good condition and have a good NCD.
How to Choose the Right Insurance for Your Old Car?
Step 1: Check Your Car’s Current Market Value
Use online platforms such as car valuation tools or insurers’ market value calculators. If the value is less than RM10,000, you may skip the comprehensive insurance.
Step 2: Compare Premiums vs. Value
Ask yourself: “Is it worth paying RM900 to RM1,300 for comprehensive cover for a car worth RM4,000?”
Most will say NO.
Step 3: Assess Car Condition
Choose comprehensive only if:
✔Car is well-maintained
✔Parts are expensive
Otherwise, go for Third Party, Fire & Theft or Third Party Only
Step 4: Consider Your Parking & Safety Environment
If your car frequently parks in unsafe areas choose Third Party, Fire & Theft. Third Party Only carries risks since it does not provide compensation for any losses incurred.
Step 5: Factor in Your Driving Habits
If you seldom use the car, then Third Party Only may be enough.
Conclusion
The best insurance for old cars in Malaysia depends on the car’s value and your needs. Most drivers select Third Party, Fire & Theft, or Third Party Only because these options offer basic protection at a low cost. You can save on premiums while maintaining secure insurance for your old car by understanding your car’s condition and comparing multiple insurers instantly on Keyplus Malaysia.