Things to Take Note About Car Insurance in Malaysia

Published by on . Updated on 29 Jun 2022

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Insurance is a vital part of one’s car ownership journey. If you’re looking to buy your first car, it might be tough understanding the world of automotive insurance but fret not, we’re here to help!

Cars are expensive assets that are also always at risk of damage and wear. This risk increases the more you use the car as more time on the road would equate to a higher chance of you facing an accident.

That’s where insurance comes in handy! It offers you financial protection in case you face any liabilities as a result of accidents, at a premium. In Malaysia, it is of course mandatory for every car owner to hold a valid insurance policy for their vehicle. Get caught not having one and be prepared for a hefty fine of up to RM3000! You will also need it to renew your road tax so please don’t try your luck when it comes to the law unless you love getting issued fines by the JPJ!

So what do you need to know about car insurance?

Safety Net

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As we mentioned, it is mandatory to have one. Without a valid car insurance policy, you could even end up being sent to prison for up to three years under the Road Transport Act 1987.

Many cite the pain of bearing the cost of insurance as a reason for not getting insurance but this is largely not a sound argument. Generally, the damages to your vehicle and any persons involved when it comes to road-related incidents would very likely be much more expensive than the premiums you pay for!

Different Types of Car Insurance

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Here in Malaysia, the 3 main types of car insurance are Comprehensive, Fire and Theft, and Third Party.

Comprehensive - Also known as the 1st party policy, has the widest coverage and will usually cover everything the other 2 types do. It also covers damages to yourself and your own vehicle.

Fire and Theft - Also known as the 2nd party policy, similar to comprehensive insurance but will only cover damages to your vehicle if it catches fire or gets stolen.

Third-Party - The most basic type of insurance and is also the cheapest, with good reason. It will only cover the other party’s damages if you’re involved in an accident.

There are also many add-ons that you can add to your plans, with some useful ones being flood and landslide coverage!

How to Get an Insurance Policy?

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There are various ways you can get yourself the right insurance policy! You can opt to go directly to an insurance company for a quote by approaching them with the necessary documents such as your car grant and insurance cover note. Then you can head over to the post office, a JPJ branch, or MyEG to renew your road tax. You can also get it done online by submitting your vehicle details to MyEG’s website for a quotation.

Alternatively, you can use an agent, preferably one operating online such as Motorist Malaysia, for a much more seamless experience. Deciding between various insurance policies and plans can be a painstaking affair so having an agent to guide and advise you is certainly a smart choice. There is also much laborious legwork to be done such as finding out your vehicle’s No-Claim Discount (NCD) and the various application forms you gotta fill out. Provide us with your car information and let us handle them. All you have to do is sit back and relax!

How to Claim Insurance?

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Whether by design or not, making a claim from the insurance company can be a tedious affair. Bookmark this page so you have something you can easily refer to in case of emergencies (which is nice to have especially when going through post-accident distress).

Record everything!

  • Take photos of the accident, its location, and all the resulting damage.
  • Take note of the other vehicle’s details and also the other party’s personal details (name, NRIC, phone number)

Get in touch with your insurance company!

  • Tell them your situation and ask them for advice about your next steps
  • Enquire about tow-truck services or the location of their panel workshops if needed

Make a police report ASAP!

This would be required when your insurance claiming process.:Submit the following documents to your insurance company!

  • Original Police report copy
  • Original investigation result copy from the police
  • Motor accident report form
  • Insurance claim form
  • Driver’s IC copy
  • Policy Holder’s IC copy
  • Repair work bill
  • All that’s left to do is to wait!

We certainly hope you never have to face a situation where insurance would be needed but it’s always good to be prepared so go get your car insured today!

I want to find the most affordable car insurance plan within 24 hours!

Read more: Malaysia's Most Interesting Driving Routes