Best Car Insurance in Malaysia

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 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.

• Is the insurance company reputable?
• How much coverage do you really need?
• Do you need any extra add-ons?
• Is the premium manageable?

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
1400	273.8	120.6	196.2	67.5
1650	305.5	135.0	220.0	75.6
2200	339.1	151.2	243.9	85.2
3050	372.6	167.4	266.5	93.6
4100	404.3	181.8	290.4	101.7
4250	436	196.2	313.0	110.1
4400	469.6	212.4	336.4	118.2
Over 4400	501.3	226.8	359.5	126.6

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.

• Your car’s gross market value
• No-Claim Discount (NCD)
• Manufactured year of the vehicle
• West Malaysia or East Malaysia
• Your car’s cubic capacity
• Betterment

A typical car insurance policy will not provide coverage for:

• Your own death or bodily injury;
• Your liability against claims from your passenger;
• Theft of non-factory fitted vehicle accessories (car stereos, leather seats, sports rims, etc.) unless otherwise declared.
• Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown failures or breakages; and
• Loss/damage arising from an act of nature e.g. flood, landslide (unless you sign up for additional coverage with extra premium)

Car insurance cover periods in Malaysia work on an annual basis of 12 months. The insurance policy is effective from the time of purchase or the agreed time of commencement.

• Windscreen coverage
• Special perils
• Strike, riot and civil commotion
• Additional named driver
• Passenger liability
• Compensation for assessed repair time
• Smart key replacement
• Spare part replacement

• Stamp duty
• Sales and Service Tax (SST)
• Agent commission

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.

• Through an insurance agent
• Via the insurance company
• Online via the insurance company’s website

• Over-insurance / Under-insurance
• Your car’s market price
• Check your No Claim Discount (NCD)

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

• Original copy of police report
• Original copy of investigation result by police
• Motor accident report form
• Claim form from insurance company
• Scanned image of the driver’s IC
• Scanned image of the policy holder’s IC
• Bill for the repair work