Car Motor Insurance Guide 2020: What Is The Best Car Insurance In Malaysia?

Having a car motor insurance for your vehicle is compulsory. With many car insurance companies you can find here in Malaysia, which among all is the best one for you to buy? Read this complete guide to find out everything you need to know about car insurance before making your decision.

Here’s the breakdown of this guide:



As you head back to normalcy in a post-MCO world, it’s time to start up your engine and return to your usual routine again. However, have you checked if your car insurance policy has expired?

In this guide, we’ll run you through the simple basics of getting a car insurance and compare some of the top car insurance policies in Malaysia.

What is car insurance?

A car insurance is essentially a contract between you and the insurance company that provides you with financial protection against physical damage or bodily injury. This protection will only be applicable for traffic or vehicle-related incidents, and comes at a premium which must be paid annually.

Also widely referred to as auto insurance, vehicle insurance, and motor insurance, car insurance is a category which, like its name, only focuses on cars. Just for context, there are other types of motor insurance categories according to different vehicles, such as motorcycles, trucks, and buses.

Get the latest car insurance deals by submitting your interest today.

Why should you get car insurance?

Actually, it’s not really a matter of ‘should’ – it’s completely mandatory for all drivers in Malaysia to get a valid car insurance policy. Without that, you won’t be able to renew your road tax through the Road Transport Department (JPJ).

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.

Driving legally is just one part of the equation – the other would obviously be the protection you’ll get with a car insurance policy. You may be as skilled as Vin Diesel in Fast & Furious, but that doesn’t mean you won’t get into an accident. (Fun fact: they destroyed at least 1,500 cars in the entire Fast & Furious franchise. We assume they would need car insurance too.)

Having a car insurance policy means you and/or other parties in a road-related incident would be able to claim for damage repairs and physical injuries. While basic policies would typically only cover the other party, a more comprehensive policy would extend its coverage to your vehicle as well.

With a car insurance policy, you’ll be able to drive knowing that if anything happens, there’s always going to be some kind of financial assistance to fall back on. For more information on how car insurance works in Malaysia, you can read one of our earlier articles here.

What happens when you don’t renew your car insurance

Simply put, you’ll be in trouble. Legally, you’ll be breaking the Road Transport Act 1987 and you can be fined up to RM1,000 and/or spend up to three years behind bars. As we mentioned previously, there’s a RM3,000 fine if you’re caught driving without a valid road tax. Since you can’t renew your road tax without first renewing your car insurance, you’ll likely end up with both fines.

But that’s just the legal part of things. The other headache would come with the repairs. You will obviously have to fork out your own money to cover the costs of the damages to the other party (if you’re in the wrong) and yourself. You may or may not also have to pay for treatments for bodily injuries.

Not having a valid car insurance policy will eventually bite you back where it hurts (your wallet),so always make sure that your policy is up-to-date. It’s common to forget or procrastinate renewing it, so set a yearly reminder a month before your policy ends. To get more information about car insurance, you may click to submit your enquiries.

Types of car insurance in Malaysia

There are three main types of car insurance in Malaysia:

Type of car insurance Description
Third partyMost basic of all. Only covers the third party involved in the car accident. Basically, if you’re at fault, a third-party insurance would cover the cost of damage, death, and/or injury to the other party.
Third party, fire, and theft (a.k.a. 2nd party policy)Everything above, plus coverage to your own vehicle if your car gets caught in fire, or gets stolen.
Comprehensive cover (a.k.a. 1st party policy)Everything above, including fire and theft, plus coverage to your own car.

However, if you’re keen on paying a higher premium for various add-ons, there are insurers who would also cover other reasons for damages (e.g. riots, floods, landslides, angry ex-partner with a hammer). To apply for that, you’ll only need to speak to your preferred insurer and they’ll be more than happy to share a policy that works for you.

Read also: Tips For Buying Car Insurance

How to renew car motor insurance

It’s actually really easy to renew your car insurance. You can either renew your car motor insurance through an insurance agent, directly at the insurer’s office, or online. Below are the steps:

Through an insurance agent

1. Contact your insurance agent.

2. Provide the agent with the necessary information (e.g. car chassis, engine number).

3. Your agent will calculate your premium cost and NCD according to the policy you choose and your claims history.

4. Make your payment and wait for the documents to be processed and handed over to you.

In most cases, your agent will also renew your road tax and deliver it to you. However, this may cost a little bit more as agents would typically take a percentage for their own cut.

At the insurance company

Going straight to the insurance company is a great idea, as some insurers are more than happy to provide discounts for such transactions. Here’s a step-by-step guide on how to renew your car motor insurance directly:

1. Determine your car market value and NCD percentage, if it is applicable to you. Remember that the valuation is only a guide. Actual values may vary depending on the condition of the car.

2. Prepare the necessary documents (e.g. insurance cover note, your existing insurance policy, and your car grant).

3. Go to any car insurance provider and get a quotation for your car insurance. If you are satisfied with the price quoted, you can make an upfront payment. You can get your car insurance policy within a day, but the original insurance policy will either be e-mailed or delivered to your house address.

4. Once you have renewed your car insurance, you can proceed to renew your road tax via MYEG, at a JPJ branch, or at the post office.

Online

As mentioned, you can also do this online. Here’s how to renew your car insurance online:

1. Go to MYEG’s website.

2. Prepare these information:

  • Vehicle registration number and IC
  • Type of vehicle
  • CC – Engine capacity
  • Year of manufacture
  • Sum insured


3. You will then receive an email with the amount due for both insurance and road tax.

4. If you are satisfied with the quoted amount, click the “Proceed to Pay” button. Your insurance will then be renewed for you and your road tax will be delivered to you shortly.

You may also be wondering – how long is your car insurance valid for? Typically, your car insurance policy would last for a year. The same applies for your road tax too. Think of this as your birthday, but instead of getting a gift, you’re buying yourself protection. For more information about the latest car insurance, click to submit your interest now.

Read also: How To Renew Your Malaysian Car Insurance

How to check your NCD and more

Before you agree to a policy, there are three things to know before buying car insurance:

1. You car’s market price

If you didn’t know, your car value depreciates every year. Thankfully, there are many sites out there – such as MyCarInfo – with free tools to help you gauge the current value of your car.

With this important piece of information, your insurer will be able to come up with a price for your policy. Do note that insurers would also consider other factors before deciding on your total policy price, including the current condition of your car.

2. Over-insurance/Under-insurance

By first knowing the market value of your car, you’ll be able to determine whether or not the amount insured is sufficient to cover your losses.

If you insure your vehicle at an amount lower than its current market value (under-insure), you will only be partially compensated up to the amount you insured your car for.

On the other hand, if you insure your vehicle at a higher amount than its current worth (over-insure), the maximum compensation you will receive is the actual market value of the vehicle and not the amount you insured it for. That’s simply because as the policy owner, you cannot ‘profit’ from a motor insurance claim.

3. Check your No Claim Discount (NCD)

You may have heard of the term ‘NCD’ being thrown around when it comes to car insurance. It basically refers to a discount you’d get when you renew your car insurance IF you have not made any claims from your insurer.

You’ll only lose your NCD entitlement if you make a claim when you’re at fault in an accident. (The other party will claim against you.) However, if you’re not at fault, you get to claim from the other party. This means that your NCD entitlement will not be affected.

Here’s a table on the NCD rates for car insurance in Malaysia:

Coverage durationDiscount
1st year25%
2nd year30%
3rd year38.3%
4th year45%
5th year onwards55%

As you can see, you can save a substantial amount of money if you avoid claiming from your insurer. This is also why many drivers would prefer to simply pay for repairs with their own money if they’re financially capable of doing so.

In case you have renewed your car insurance without taking into account your NCD entitlement, just inform your insurer and you should be able to get the excess payment refunded back to you.

Read also: How To Calculate Car Insurance Price In Malaysia

How to claim car insurance in Malaysia

We’ll be honest – this can get pretty tedious, so be prepared. Here’s a simple step-by-step guide on how to submit your car insurance claim:

1. Contact your insurance company ASAP

Let them know about what has just happened, and you’ll be guided on your immediate next steps. If you need a tow-truck, you can also ask your insurer to send one to you. (This is dependent on your policy, but most policies come with a free tow truck service.) You can also ask them for the location of their panel workshops to send your car for repairs.

2. Take evidence of the entire incident

Document everything with photos and videos of your vehicle and/or the other party’s vehicle. Take down their details too.

3. Make a police report

Head to the nearest police station to file a report within the next 24 hours. Filing a late report could incur a fine of RM300. You’ll also need to keep the report for your insurance claiming process.

4. Prepare the following documents for your claims

  • 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

5. Submit the documents to your insurer and/or your panel workshop

An official insurance adjuster will come and assess the damage and cost to fix your car. Once the assessment is done, the panel workshop will be able to start fixing your car.

For an extended guide, read our article: Guide To Auto Insurance Claim Process In Malaysia. 

Which is the best car insurance in Malaysia?

The best insurance would be one that meets your needs, so here’s a table comparing some of the top car insurance policies in Malaysia. To get the latest car insurance promotions and deals, click to submit your interest now.

*IMPORTANT: Items below represent some but not all features in the policy. Features are also subject to terms and conditions, such as your preferred premium level.

InsurerSnapshot of highlightsMore info
Allianz Car Insurance
  • Losses or damages to your car due to accident, fire, and theft
  • Third party death and bodily injuries
  • Third party property losses or damages
  • 24-hour helpline assistance
  • First Response Bike Brigade (Klang Valley)
  • Allianz Tow Truck with free towing of up to 150km
  • E-hailing vouchers
  • 10 minutes claims approval for Own Damage
  • Vehicle delivery to your doorstep
Go to website
MSIG Car Insurance
  • Damage to your car due to accident
  • Damage to other person’s car or property
  • Damage to your car due to fire or if your car is stolen
  • Death or injury to third party in an accident
  • Motor Assistance Programme
  • Coverage for driver and passengers in the car
  • Unlimited towing service
  • Covers the unexpected expense of betterment costs
  • Compensation for loss of use of car based on estimated actual repair time as assessed by loss adjuster
  • Loss or damage to car caused by natural disasters
  • Smart Car Key repair, replacement and/or reprogramming
  • Protection over car, driver, and passenger when in e-hailing mode
Go to website
AIG Car Insurance
  • Daily Cash Allowance for inconvenience caused during repair period
  • Cash Compensation due to accidents or damage from natural disasters
  • Free towing of up to RM200
  • Transportation fare
  • Protection over vehicle break-ins
  • Key replacement
  • Tyres and rim repair/replacement
  • Personal Accident and passenger protection
  • Passenger protection against permanent injury/disability/death
Go to website
Zurich Car Insurance
  • Added discounts if you are in the low-risk segment (e.g. cautious driver, lady driver, and/or SUV driver)
  • Free towing of up to 150km
  • Discount of up to 20% with voluntary excess
  • Reimbursement up to RM5,000 on towing and cleaning of vehicle due to flood
  • Personal Accident coverage of up to RM175,000/car as low as RM15/year, with passengers included
  • Unlimited use of courtesy car
Go to website
Etiqa Car Insurance
  • Third party bodily injury and death
  • Third party property loss or damage
  • Loss or damage to your own vehicle due to accidental fire, theft, or accident
  • Free towing of up to 200km
  • 10% rebate on top of NCD with online renewal
  • Reimbursement with value you agree with
  • All authorised drivers automatically covered
  • 24/7 emergency hotline
  • Cash back when no claims are made (Takaful only)
Go to website
Tokio Marine Car Insurance
  • Third party bodily injury and death
  • Third party property loss or damage
  • Loss or damage to your own vehicle due to accidental fire, theft, or accident
  • Free towing of up to 200km
Go to website
AXA Affin Car Insurance
  • Risk-based pricing (detariffed rates)
  • Repair warranty
  • Fast approval of 5 working days
  • 24-hours hotline service
  • Car towing service
  • 6 months repair warranty
  • Coverage on death, permanent disablement, and medical expenses arising from accidents 24/7 worldwide
  • Protection against accidents and injuries
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Takaful Car Insurance
  • Third party bodily injury and death
  • Third party property loss or damage
  • Loss or damage to own vehicle due to accidental fire, theft, or accident
  • Free towing of up to 50km
  • 0% interest instalment plan
  • Complimentary Personal Accident coverage for driver and passengers
  • No extra costs for additional drivers
  • Cash back for no claims
  • 24/7 roadside assistance program
  • 6 months repair warranty
  • Pay and collect points with 8excite
  • 10% discount with online enrolment
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AmAssurance Car Insurance
  • Third party bodily injury and death
  • Third party property loss or damage
  • Loss or damage to own vehicle due to accidental fire, theft, or accident
  • 24-hour free auto assistance
  • Free towing of up to 50km
  • 24-hour customer support line
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Kurnia Car Insurance
  • Accidental damages to own car including damages caused by falling trees
  • Damage caused by attempted theft
  • No payment of RM10 for additional named driver and no charges of RM400 compulsory excess for unnamed driver
  • Towing assistance of up to 365km including unlimited toll charges
  • Compassionate allowance for loss of vehicle
  • Flood relief allowance
  • Reimbursement up to RM1,000 to repair or replace car key(s)
  • Compensation up to RM1,000 for loss of possession in vehicle
  • Reimbursement up to RM1,000 for ambulance fees
  • 3 years’ warranty for workmanship repairs by panel repairer
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RHB Car Insurance
  • Death or injury to other parties
  • Damage to other parties’ property
  • Loss/damage to own vehicle caused by theft or fire
  • Damage to own vehicle due to accident
  • Transportation of damaged vehicle
  • Covers for legal representative
  • Legal costs
  • Free towing service of up to RM300 per breakdown
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Berjaya Sompo Car Insurance
  • Loss/damage to own vehicle due to accident, fire, and theft
  • Liabilities to third party for injury, death, and property loss/damage
  • Free towing of up to RM200
  • Waiver of named driver requirement
  • Repairs warranty of 12 months
  • Special perils coverage up to RM10,000
  • 24-hour Rakan auto assistance
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