Finding Insurance for Old Cars? Here’s How!

High 19

Although there are many new cars launching in the market, not every Malaysian can afford one. Some people might be able to purchase a new car, but they choose to stick to their old, primitive, beat-up car due to the many emotional attachments it holds that they couldn’t bear sell or let go. 


As we know, good car maintenance is vital to ensure the longevity of our vehicles especially for old cars that are more than 15 years of age. Unlike Singapore, vehicles bounded under the strict Certificate of Entitlement (COE) law which grants its owners the right to own and use vehicles not more than a decade. There’s no such law in Malaysia!

As long as Malaysians believe a car has not exceeded its useful purpose, a car can still be used until the moment it no longer is able to function properly.  


Why don’t insurance companies insure old cars?


Now, most insurance companies are interested in insuring new cars but less keen on the old cars because of two main reasons. 


Firstly, old cars are believed to be highly risky due to lack the latest safety features. Also, old cars are more likely to be involved in accidents because of the same reason. The payout will be high. Thus, lessened the insurers’ profit margins if these cars involved in any road accident. 


Secondly, insurance companies will have a hard time estimating the value and restoring old vehicles to its optimum condition. 


Here is what you can do 


It’s required by law in Malaysia for all cars to have a car insurance if you want to drive it on the road.  If you insist on driving your old car, the next best option is to apply for a third-party insurance through the Malaysian Motor Insurance Pool (MMIP). 


 What is MMIP and how can they help you?


Malaysian Motor Insurance Pool (MMIP) is a special high-risk establishment that was formed by the local insurance companies for insuring vehicles that insurance companies are no longer willing to insure. In common cases,  it is mainly for cars above ten years. They strive to ensure that each vehicle, no matter how old, is covered under the Third Party coverage policy. 


Where to purchase an MMIP insurance?


You can purchase your MMIP insurance at either UniAsia General Insurance Berhad, Multi-Purpose Insurance Berhad or at any of the local Pos Malaysia Berhad branches. 


Unlike the first two servicing agents which offer drivers all kinds of driving-related policies for different types of vehicles. Pos Malaysia only provides for only private cars, motorcycles, taxis and buses.  


What are the documents required for applying for MMIP Insurance?


To apply for the insurance, you will need to prepare


  •  an original policy or renewal notice from your previous car insurance, 
  •  an original copy of the Vehicle Registration Certificate (VOC), 
  •  a copy of your MyKad, 
  •  a complete Proposal Form for new and renewal policy applications. 
  • Consent and approval letter from Pushpakom after inspection *


What are the charges like? 

Before you inquire about the premium, please remember that the premiums for MMIP policy are much more expensive than the premiums quoted by general insurers, as MMIP serves as the last option for old car owners with risk-labeled vehicles.


Getting a car insurance for old cars might be inconvenient and cost quite a penny. But it will be worth withstanding the itch to buy a new car as long as your car can function appropriately.


Now, you don’t need to worry anymore when the next time your car insurance rejects you because you know where to go!