This list is non-exhaustive. Please refer to the certificate contract for full list of coverage and optional benefits available under this certificate.
In Malaysia, you’re spoiled for choice when it comes to which car insurance to opt for. Below is a quick summary of the average premium rates and features of some of the most popular car insurance companies in Malaysia.Note that the comparison below only serves as a rough guide, as the items below only represent some features of the policies. Premium rates are also dependent on many factors such as your car’s model and the type of coverage you need.
|Car Insurance and Takaful||Highlights|
|Allianz Car Insurance|
|AIG Car Insurance|
|MSIG Car Insurance|
|Zurich Car Insurance|
|Etiqa Car Insurance|
|Tokio Marine Car Insurance|
|AXA Affin Car Insurance|
|Takaful Car Insurance|
|AmAssurance Car Insurance|
|Kurnia Car Insurance|
|RHB Car Insurance|
|Berjaya Sompo Car Insurance|
|MPI Generali Car Insurance|
|AIA Car Insurance|
|Chubb Car Insurance|
Car insurance is also referred to as auto insurance, vehicle insurance or motor insurance. It’s essentially a contract signed between you and the insurance company. You as the insured, agree to pay a premium to the insurance company annually. In return, the insurance company agrees to provide you financial protection (to a certain degree based on your policy) in the event of traffic or vehicle-related incidents. In exchange for this financial protection, you have to pay a premium to the insurance company annually.
We all come across road accidents at least once in our lifetime. In such events, car insurance works as a safeguard for your pocket by helping to cover the costs incurred by any vehicle damages or bodily injuries.
You redeem your coverage by filing a claim. If the incident is covered under your policy, your insurance company will fork out for the cost of the damage caused.
Yes, car insurance is mandatory in Malaysia if you own a car. Here, car insurance and road tax go hand in hand. Just as you can’t legally drive without a valid road tax, you are also required to possess car insurance.
If you do not own car insurance, you won’t be able to renew your vehicle’s road tax from the Road Transport Department (JPJ) Malaysia. And without your road tax, you won’t be allowed to drive on Malaysian roads legally. If you get caught without a valid road tax, Section 14(4) of the Road Transport Act (RTA) 1987 would leave you with a fine of up to RM3,000.
It’s really not a matter of why you “should”, as all drivers in Malaysia are mandated by law to possess car insurance in order to drive on Malaysian roads.
Type of car insurance Description Third party Only covers the third party involved in a car accident. If you are at fault, this would cover the car repair and medical expenses of the other person. Third party, fire and theft(2nd party policy) Everything above, plus coverage to your own vehicle in the event it gets stolen or caught on fire. Comprehensive cover(1st party policy) Everything above plus coverage for damage to your own car caused by an accident.
Many Malaysians don’t know that they can readily calculate the approximate basic premium rate for their car insurance. With all the factors that go into the premium rates, the calculations can be a little complex.
Below, we’ve broken down the formula into different segments to help you understand how basic car insurance premiums in Malaysia are calculated.
|Private Car Schedule of Premiums|
|West Malaysia||East Malaysia (RM)|
|Cubic Capacity (cc) Not exceeding||*Comprehensive (X – Rate for first RM1,000 sum insured)||Third Party||*Comprehensive (Rate for first RM1,000 sum insured)||Third Party|
|Formula to Calculate Your Car Insurance Basic Premium|
|West Malaysia||Comprehensive rate for first RM1,000 sum insured (from the table above) + RM26 for each RM1,000 or part thereof on value exceeding the first RM1,000.|
|East Malaysia||Comprehensive rate for first RM1,000 sum insured (from the table above) + RM20.30 for each RM1,000 or part thereof on value exceeding the first RM1,000.|
A typical car insurance policy will not provide coverage for:
In a serious road accident, there are typically two types of costs to think about - the medical expenses and car repair damages.
In their most basic form, most car insurance policies only cover the death and disabilities of the third party and not you, the driver. Personal accident insurance on the other hand, can offer you peace of mind knowing that your medical bills are covered for in the event of an accident.
Step 1: Contact your insurance company ASAP
Step 2: Prepare evidence of the incident
Step 3: File a report at the nearest police station within 24 hours
Step 4: Prepare the following documents for your claims
Step 5: Submit the documents required by your insurer