After a car accident, one of the most confusing decisions Malaysian drivers face is whether to claim third-party insurance or make an own damage claim. Choosing the wrong option can cost you your No Claim Discount (NCD), delay repairs, or even result in rejected claims.
If you’ve been involved in a car insurance accident, this guide will help you understand:
- What third-party and own damage claims mean
- When each option makes sense
- How each choice affects your NCD, time, and costs
- How to decide the best claim route for your situation
Understanding this difference is essential for anyone claiming third party insurance in Malaysia.
What Happens After a Car Accident in Malaysia?
Regardless of fault, most accidents follow a similar process:
- Ensure safety and gather evidence
- Exchange details with the other driver
- Make a police report (if required)
- Decide which insurance claim to make
That last step is where many drivers go wrong.
If you’re unsure what to do immediately after an accident, Autore’s car insurance help centre provides step-by-step guidance.
What Is a Third-Party Insurance Claim?
A third-party insurance claim means you are claiming against the other driver’s insurance, not your own.
This option applies when:
- The other driver is clearly at fault
- You have sufficient evidence (police report, photos, witness statements)
- You do not want to affect your NCD
Key Benefits of Claiming Third-Party Insurance
- Your NCD is usually protected
- Your own policy is not used
- You avoid premium increases
To understand the full process, refer to this complete guide on claiming third-party insurance in Malaysia
What Is an Own Damage Claim?
An own damage claim is when you claim under your own comprehensive car insurance policy, regardless of who caused the accident.
This option is commonly used when:
- Fault is unclear
- The other driver refuses responsibility
- You want faster repairs without waiting for liability confirmation
Downsides of an Own Damage Claim
- Your NCD may be reduced or reset
- Your insurance premium may increase
- You may need to pay excess
This is why own damage claims should be used carefully.
Third-Party vs Own Damage Claim: Key Differences
Aspect | Third-Party Claim | Own Damage Claim |
Who pays | Other driver’s insurer | Your own insurer |
NCD impact | Usually protected | Usually reduced |
Speed | Slower (liability review) | Faster |
Fault required | Yes | No |
Upfront payment | Sometimes | Rare |
Which Claim Should You Choose After an Accident?
The right choice depends on fault, evidence, and urgency.
Choose a Third-Party Claim If:
- The accident was not your fault
- Police report confirms the other driver’s liability
- You want to protect your NCD
- You’re willing to wait slightly longer
Learn more about car insurance claims when the accident is not your fault.
Choose an Own Damage Claim If:
- Fault is unclear or disputed
- You need your car repaired urgently
- Evidence is insufficient
- You accept the NCD impact
How Fault Affects Claiming Third-Party Insurance
Fault determination is critical in Malaysia. Without confirmation:
- Third-party insurers may delay or reject claims
- You may be asked to repair first and claim later
- Disputes can prolong the process
This is why many drivers mistakenly make own damage claims when they shouldn’t.
If you’re unsure about fault or claim eligibility, refer to the types of car accident insurance claims in Malaysia.
What About Knock-for-Knock Claims?
In certain situations, insurers may apply knock-for-knock arrangements, where:
- Each insurer pays for their own policyholder’s damage
- NCD may still be affected depending on circumstances
This arrangement often causes confusion and should be clarified before you proceed.
How the Claim Process Differs for Each Option
Third-Party Claim Process (Simplified)
- Report accident
- Submit documents to third-party insurer
- Vehicle inspection
- Repair approval
- Repairs and reimbursement
Own Damage Claim Process
- Notify your insurer
- Submit claim documents
- Vehicle inspection
- Repair approval
- Repairs under your policy
For a detailed breakdown, see the car insurance claim procedure FAQ in Malaysia.
Common Mistakes Malaysians Make After an Accident
❌ Claiming Own Damage Without Checking Fault
Many drivers rush into own damage claims and later realise they could have claimed third-party without losing NCD.
❌ Assuming Third-Party Claims Are Always Slow
With proper documentation and guidance, third-party claims can be smooth.
❌ Not Asking for Help Early
Early advice can prevent irreversible mistakes.
If you have doubts, check Autore’s FAQ section for common accident and claim questions.
How Autore Helps Drivers Choose the Right Claim
Autore exists to help Malaysian drivers:
- Understand their claim options clearly
- Avoid unnecessary NCD loss
- Navigate third-party claims confidently
- Reduce stress after accidents
You can learn more about Autore’s role in accident claims.
Frequently Asked Questions (FAQ)
Can I choose between third-party and own damage claim?
Yes, if you have comprehensive coverage—but the choice has consequences.
Will third-party claims always protect my NCD?
Usually yes, provided you do not claim under your own policy.
What if the other driver refuses fault?
You may need to wait for investigation or consider an own damage claim.
Which claim is faster?
Own damage claims are generally faster, but may cost more long-term.
Can I switch claim type later?
In most cases, once a claim is made, it cannot be reversed.
When Should You Get Professional Help?
You should seek guidance if:
- Fault is disputed
- You’re unsure which claim to make
- The insurer delays or rejects your claim
- You want to protect your NCD
Autore’s car insurance help centre is a good starting point for support.
Conclusion
Choosing between claiming third-party insurance and making an own damage claim can significantly affect your costs, NCD, and peace of mind after a car insurance accident.
In general:
- Third-party claims are better when you’re not at fault
- Own damage claims are useful when speed matters or fault is unclear
Understanding your options—and getting the right advice early—can save you time, money, and unnecessary stress.
Need Help With Your Car Insurance Claim?
We’re here to guide you on:
✅ Claim advice
✅ NCD retention
✅ Best-value insurance plans