You acquired a driver’s license, but the problem is that you still don’t have a vehicle. That is why it crossed your mind that you could try driving your parents’ car. However, the problem is that the vehicle doesn’t have any type of insurance. Should you drive a car that doesn’t have insurance, even if it belongs to your parents? We carefully analyzed that topic, and here is what we discovered!
You Shouldn’t Drive a Car without an Insurance Policy
The law in Malaysia is very clear – it doesn’t allow driving a car that doesn’t have insurance. That means the answer to this question isn’t related to the fact that the vehicle belongs to your parents. The only thing that matters is whether it has insurance. If you drive a car without insurance, you risk a hefty penalty. Furthermore, if you participate in an accident, you might face substantial damage bills. That is why it’s just not worth the risk – it is better and safer to acquire an insurance policy. While we are on the topic, let’s mention that it is legit to drive your parents’ car, but under these conditions:
- The vehicle has an active insurance policy.
- You have an active driving license.
- Your parents agree with you using their car.
What Is Car Insurance Mandatory in Malaysia?
According to the law, you need to have at least third-party car insurance. If you own a vehicle, it is compulsory to have an active insurance policy for it. Those who drive someone else’s car should confirm that there is a valid insurance for that vehicle before sitting behind the wheel. The Malaysian authorities allow you to choose the desired insurance plan. The minimum required is a third-party policy, and that is the most affordable option. You can take things one step further and go with a comprehensive policy. That will secure all-around protection if an accident occurs on the road.
Why Is Car Insurance Mandatory?
You must pay the road tax for any vehicle that you own. However, you cannot apply for that tax if you don’t have an active insurance deal for your car. That means a policy is a pre-requirement for the road tax, which the law requires you to pay.
What If I Don’t Want to Purchase Car Insurance?
The Road Transport Act clearly specifies that a single fine for driving without road tax is up to RM3,000. That is a large sum to pay, which is why car insurance and road tax is a way to secure peace of mind. And that is only the beginning because driving without car insurance is also subject to a fine. According to the Road Transport Act (RTA), you could face up to three years in prison and be paid up to RM1,000.
The problems pile up if you participate in a road accident. If no insurance covers you, and you are not the blame, you will still end up paying for the damage on your vehicle. And if you are the one who caused the accident, you will need to pay to fix other people’s cars, too. If you employ common sense, it is not only about what the law requires. Getting a car insurance policy for your vehicle protects your finances and provides peace of mind. That is why you should only enter your parents’ (or any other) vehicle if it has an active insurance deal.