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hi richie22,
just did a road trip by car from phuket to penang and back 3 weeks ago , didn't have any problems and that was using a rental car , as far as number plates are concerned , as long as the car has the white plates , as opposed to the red ones , you should be ok , as far as insurance goes , you will need to produce the cars registration document in order to obtain it , insurance is available at the malaysian side of the border on the right hand side , where is the duty free place.
have a nice trip
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