In Malaysia, with the increase in the number of vehicles, it has never been more important to have your car insured. A car insurance policy protects you and helps safeguard your vehicle from any sort of damage or injury incurred due to accident, theft, fire, etc. The different types of motor insurance policies available in Malaysia include, Comprehensive Cover, Third-Party, Fire and Theft Insurance Policy, and Third-Party Insurance Policy.
Best Car Insurance Companies in Malaysia with Plans
|Insurance Provider||Type of Coverage||NCD||Free Tow||Mode of Premium Payment||Frequency of Premium payment|
|Etiqa Car Insurance||Comprehensive Cover||Yes||Yes||Cash, credit card or cheques||-|
|Allianz Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||Cash, credit card or cheques||Annual|
|Berjaya Sompo Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||-||Annual|
|MSIG Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||-||Cash, credit card, or cheques||-|
|Tokio Marine Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes (Up to RM200 for accidents and RM250 for vehicle breakdown)||Cash, cheque or credit card||Annual|
|AIG Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||Cash, credit card or cheques||-|
|AXA Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||Cash||-|
|Kurnia Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes (up to 50 kms)||Offline and internet banking||Annual|
|Maybank Car Insurance||Comprehensive Cover||Yes||Yes||-||-|
|Zurich Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||Annual|
|RHB Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes (Up to RM200)||-||Annual|
|AIA Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||Cash, Credit Card or Internet Banking||-|
|Alliance Bank Car Insurance||Comprehensive Cover||Yes||Yes||-||-|
|Ambank Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes (upto 50 kms)||-||-|
|Berjaya Sompo Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||-||-|
|Chubb Car Insurance||Comprehensive Cover||Yes||Yes||-||-|
|Lonpac Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||-||-|
|Tune Protect Car Insurance||Third-Party Cover, Third-Party, Fire and Theft Cover, Comprehensive Cover||Yes||Yes||-||-|
Why Do You Need Car Insurance?
A car insurance policy is important to give you financial cover whenever there is a damage to your vehicle or injuries sustained either to you or a third party in case of an accident. Any claims of property damage, physical injuries, death, etc., made by a third-party will be covered by your motor insurance policy.
Benefits of Car Insurance Policy in Malaysia
- You can choose from 3 types of car insurance policies - Third-Party Insurance Cover, Third-Party Fire and Theft Cover, and Comprehensive Insurance Cover.
- Your premiums are decided based on age and make of the car, its market value and an applicable No Claim Discount (NCD). Your location may also play an important part in deciding your premium, as higher premiums are charged for accident-prone areas.
- Most of the policies also come with free towing and roadside assistance services.
- You can reduce your insurance premium if you are eligible for a No Claim Discount.
- You can also purchase additional cover with your car insurance policy, such as, windscreen cover, protection from flood, landslide, or other natural calamities, personal accident, and medical benefit cover for a driver, etc.
Types of Car Insurance Policies and Coverage
- Third-Party Insurance Cover: It is a basic type of insurance cover in which loss and damages to the vehicle of a third-party, and bodily injuries or death is covered. You cannot claim any damage caused to your own vehicle with a Third Party Cover.
- Third-Party, Fire and Theft Cover: This policy covers death or injuries to a third-party or damages caused to their vehicle. It is same as the Third-Party cover just that the policy additionally covers your own car against damages or losses caused due to fire or theft.
- Comprehensive Insurance Cover: As the name suggests, this policy provides a wider range of protection - both to the first party and the third party. You get to enjoy additional coverage on damages caused to your own vehicle with this motor insurance policy.
Covers offered against types of car insurance policies:
|Cover offered on||Comprehensive Cover||Third-Party, Fire, and Theft Cover||Third Party Cover|
|Third-party death and injury, vehicle damage||Yes||Yes||Yes|
|Own vehicle loss and damage due to theft or accidental fire||Yes||Yes||No|
|Damage and loss of your own vehicle due to accident||Yes||No||No|
|Liabilities to passenger (death, injury, or car damage)||No||No||No|
Car Insurance Policy Eligibility in Malaysia
To purchase a car insurance policy in Malaysia, you need to fulfil the following criteria:
- You need to have a valid driving licence.
- You need have the valid road tax permit.
- Car registration card
- Any other document as specified by your insurance provider
Which Car Insurance Is Right for You?
If you are looking to purchase a car insurance but are wondering as to which one would be best suited for you, consider the following pointers:
- What type of cover you are looking for? (Comprehensive, Third-party, or Third-Party Fire and Theft)
- The premium you can afford.
- What is the type and make of your vehicle?
- Do you require any add-on covers?
After studying all these aspects, you will get an idea of the type of insurance cover that is ideal for you. It is also advised to check the online ‘Car Insurance Calculator’ tools to know the type and the premium amount applicable for you. This way, you can choose the ideal vehicle insurance policy for your car.
Car Insurance for Foreigners (Expats)
If you are a foreigner or an expat in Malaysia, you can still purchase a new or used car in the country. However, it is compulsory to buy a motor/vehicle insurance policy for your car. You can obtain any one of the specified car insurance covers. You need to present a set of mandatory documents while getting an insurance including your valid passport and work permit.
Car Insurance Exclusions
Even when your car insurance policy offers extensive protection, there are certain exclusions that are not covered under any type of insurance schemes. Let’s take a look at some of the prime omissions from a car insurance cover:
- Your own bodily injury or death
- Damages caused to the vehicle when the driver is under influence of alcohol
- Damages caused due to natural calamities like earthquake, flood, etc.
- Wilful damages caused to the car by the owner
- Loss or damage to the car while being used for illegal purposes
- If the driver does not have a valid licence
- Harm caused through war, terror attacks, or any other such incidents
- Your liabilities against claims made by your passengers
However, for many of these exclusions, you can still buy an add-on cover by paying some extra premium to your insurance provider.
Things to Consider Before Buying Car Insurance
Thorough research should be a part of your homework when buying a car insurance policy. After all, you do not want to end up buying a policy that charges an extravagant premium for your basic model car. Hence consider the following things before purchasing any scheme:
- How Will De-Tariffication Affect Me?
Motor detariffication that came into effect from 1 July 2017, has introduced a risk-based approach in deciding the calculation of your car insurance premium. Through de-tarification, premium pricing for all types of car insurance covers are liberalised and now it will be determined by the respective insurance providers. De-tarification will affect a regular insurance buyer because:
- Insurance companies will consider the factors like, gender and age of driver, occupation, claim history, etc., to determine the insurance premium.
- To stay in the competition, new types of insurance related products or covers can be introduced.
- You may also get an insurance policy for a cheaper rate due to the increased competition in the market.
- The insurance premium cost may decrease/increase as per the provider’s discretion and for the same vehicle, the insurance plan’s cost might defer with different policy providers.
- How Can You Prepare For It (De-Tarification)?
You need to consider the following factors to be prepare for de-tarification if you want to avoid paying excessive premium on your insurance policy:
- Compare policy rates of different companies
- Choose add-on covers that are necessary for you
- Research about the ‘claim approval’ ratio of the company
- What Are The Factors That Determine The Premium?
The premium of a car insurance policy is determined by the following factors:
- Type and make of car
- Year of manufacture or age of the vehicle
- Type of fuel used
- Applicable No Claim Discount
- Age and gender of a car owner, etc.
- No Claim Discount (NCD) Rate
A No Claim Discount or NCD is a mark-down offered on the cost of a car insurance cover premium if you have not made any claim against your policy for the previous 12 months. You get up to 55% discount on your premium amount under NCD. Rates of NCD are as follows:
|Insurance Period||Vehicle (Private)||Vehicle (Commercial)||Motorcycle|
|5th Year and above||45%||25%||25%|
Car Insurance Premium Calculator
A car insurance premium calculator provides you tailored quotations from various insurance providers. The estimations are dependent on the model of your car, current condition (new car, used car, etc.), market value, type of fuel used, location, etc. Find of the benefits of using a car insurance premium calculator:
- Through an online car insurance calculator, you can obtain information regarding your payable premium, etc. much quicker compared to the available offline methods.
- A car insurance premium calculator saves your money that you would have paid to an agent to gather information about various insurance policies available.
- You can get an estimate for all types of vehicles, new, old or modified.
How Do You Buy Car Insurance in Malaysia
You can buy a car insurance policy via both online and offline methods.
- Offline method: You can hire an agent or visit the office of an insurance provider to purchase your desired car insurance policy.
- Online method: You can go to the official website of an insurance provider and submit the necessary form for your preferred insurance policy. Here, you can opt for an online payment procedure to make your purchase.
How to Claim Your Car Insurance Online
You can claim your car insurance online by visiting the official website of your insurance provider and filling up a ‘claim form’ available on the website. Here, you may have to provide the details of your claim including the cause and damage occurred, type of your insurance cover, and other details regarding the policy. After submitting the form successfully, a company representative will call you regarding the further process.
- A copy of identity card or passport
- A copy of driving licence
- A copy of vehicle registration certificate
- Photographs of damage/accident (if available)
- Draft of police report
- Road tax receipt
- Any other documents a requested by the insurance provider
Renew Car Insurance
You can renew your car insurance policy through both online and offline techniques.
- Offline method: You can tell your agent to renew it for you or you can also visit the nearest branch/office of an insurance provider to renew your relevant car insurance policy.
- Online method: You can go to the official website of your insurance provider and fill in a renewal form. On completing the necessary procedure and making the payment, you will receive the details about your policy renewal.
Q. Will I lose my NCD if I make a claim against my insurance policy?
A. Yes, you will lose your No Claim Discount once you make a claim against your insurance policy. To earn NCD again, you will have to go claim-free again for 12 months.
Q. Is road tax receipt mandatory while renewing a car insurance policy?
A. Yes, you must renew your road tax to get a car insurance cover.
Q. What should I do if I need a roadside repair assistance for my car?
A. Your insurance policy may or may not offer roadside assistance for minor repairs and towing for your vehicle. If you want to obtain roadside assistance from your insurance provider, you can call up the customer care number of your provider and request a service.
Q. What happens if I do not have an insurance cover?
A. If you do not have an insurance cover or if you have not renewed it within the permitted timeline, you will have to pay a hefty penalty of up to RM3,000. Moreover, you will not be able to get your road tax receipt until you get your car insurance policy. Apart from that, if caught without a motor insurance policy, your name will be recorded in the offenders’ list. Also, on getting involved in an accident, you will have to pay the costs for damage and losses for a third-party from your own pockets.
Q. Can I lose my NCD if I claim for my add-on covers?
A. If you make a claim for additional cover that you have purchased apart from your insurance policy, you will not lose your No Claim Discount.
Q. Will my car accessories such as music system, be covered under my motor insurance policy?
A. Non-factory fitted accessories of a vehicle such as stereo, sports rims, etc., are not covered under a car insurance policy.
Q. Where should I make a claim if I am injured by an uninsured vehicle?
A. When you fail to make a third-party claim, you can make a claim to the Motor Insurers’ Bureau of Malaysia (MIB). The MIB provides a compensatory amount to the sufferer for his/her bodily injuries and any loss or damage of your vehicle/stuff will not be compensated by the bureau.
Q. What is a compulsory excess?
A. Compulsory excess fee is an amount you need to pay when you make any damage or loss claim against your insurance policy. The excess is deducted directly from your insurance claim.
If you are buying a car insurance in Malaysia, this article can help you to make the best choice and to choose an ideal policy considering the type of your vehicle.