Finding Insurance for Old Cars? Here’s How!

Although there’s so many new cars being launched on the market, not every Malaysian can afford to buy a new one with the current declining state of the economy. Some people might be able to purchase a new car, but they chose to stick to their old, primitive, beat-up car due to the many unforgettable memories the car holds that they couldn’t bear sell or let go. As they say, sentimental values.

However, 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, whose vehicles are bound under the strict Certificate of Entitlement (COE) law which grants its owners the right to own and use their vehicles not more than a decade, there’s no such law in Malaysia.

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

1. Why don’t insurance companies insure old cars?

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

Firstly, old cars are believed to be highly risky because they lack the latest safety features that are introduced in the newest models. Also, old cars are more likely to be involved in accidents because of the same reason. If the companies insure these cars, the payout would be high and thus, lessened the insurers’ profit margins.

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

2. So, what can you 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, then there’s only one route to take. You can apply for a third-party insurance through the Malaysian Motor Insurance Pool (MMIP).

3. What is MMIP and how can they help you?

Established in 1992, Malaysian Motor Insurance Pool (MMIP) is a special high-risk body that was formed by the local insurance companies for the purpose of insuring vehicles that insurance companies are no longer willing to insure, which is often the case for old cars. They strive to ensure that each vehicle, no matter how old, is covered under the Third Party coverage policy. Basically, they are your last hope of insuring your old cars!

4. Where can I purchase a 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 a certain types of vehicles such as private cars, motorcycles, taxis and buses.

Once you’ve purchase your MMIP insurance from any of these agents, you can just visit https://qompanion.my/stories/categories/helpful-tips/articles/malaysian-road-tax-renewal and it will teach you the easy ways of renewing your road tax!

If you’re living in the peninsular Malaysia and unsure of the current rates for different types of vehicles, you can click on this link https://qompanion.my/stories/categories/news/articles/road-tax-for-mpv-suv-pick-up-in-peninsular-malaysia to find out more.

5. What is not covered by the MMIP motor insurance?

As with a general insurance, MMIP also has it own exclusions. Some of the things that MMIP does not cover are vehicles on rails, vehicles that doesn’t travel only on roads, any racing or speed-testing vehicles and any liabilities for commodities being transported in vehicles.

6. What are the documents required for applying MMIP Insurance?

To apply for the insurance, the basic documents that you need to prepare are 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, and a complete Proposal Form which is required for new and renewal policy applications.

Besides these basic documentations, there are some additional documents that are also required but they are different for some car owners. For example, certain applicants will be required to get their vehicle inspected by Puspakom before purchasing a car insurance. As this is not the same case for all applicants, it is advisable for you to enquire with either the servicing agents or Pos Malaysia prior to applying.

But do take note that these are applicable only for personal vehicles. Other vehicles, either commercial or company-owned will need other extra documents.

7. How much do I have to pay?

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.

This is understandable as MMIP serves as the last chance for old car owners with risk-labelled vehicles and they are the only organization that provides insurance for this category of car owners. Thus, a high-risk vehicle will equal to high insurance cost.

As A Whole?

Getting a car insurance for those old cars might be inconvenient for you and may cost you quite a penny but if the car is important to you, it will be worth withstanding the itch to buy a new car as long as your car is able to function perfectly. Now, you don’t need to worry anymore when the next time your car insurance rejects you because you know where to go!

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