Introduction
Many car owners in Malaysia still get confused when buying car insurance — whether online or over the counter. A small mistake can cause you to overpay, or worse, end up with incomplete coverage during an accident. In this article, we’ll go through 5 common mistakes people make when buying car insurance and how to avoid them easily.
1. Not Understanding Coverage Types (1st Party vs 3rd Party)
Many first-time buyers think all insurance is the same, but the difference is huge.
1st Party (Comprehensive): Covers your car and third-party damages.
3rd Party: Covers only damages or injuries to others.
If you’re driving a new car or have an active car loan, a comprehensive policy is mandatory.
But for older cars with lower market value, a 3rd party plan might be enough.
Tip: For cars above 15 years old, compare both plans — sometimes the premium difference is under RM100, yet the coverage gap is significant.
2. Buying Without Comparing Prices
One of the most common mistakes — buying directly from a single insurer without comparing options.
Insurance premiums can differ by hundreds of ringgit between companies even with similar coverage.
The simple solution:
Use platforms like Bjak to compare car insurance prices instantly. No need to fill out multiple forms — the system shows offers from multiple insurers on one screen.
Example: Enter your plate number and IC → Bjak displays quotes from Allianz, AXA, Etiqa, Takaful Ikhlas, and more — all within a minute.
3. Not Updating Vehicle Information
Details like your chassis number, engine capacity, and address are crucial for accurate policy issuance.Wrong information may delay policy approval & even void your claims.
Tip: Always double check your details before purchasing, when purchasing through BJAK, it will always ask you to confirm details before purchase.
4. Choosing the Wrong Coverage Value (Sum Insured)
The sum insured is the maximum amount your insurer will pay if your car is stolen or declared total loss.
Many people make two common mistakes:
- Over-insured: Paying higher premiums unnecessarily.
- Under-insured: Getting less compensation than your car’s actual value.
Use Bjak’s car insurance calculator to check your car’s market value before setting your sum insured.
Example:
If your car’s market value is RM45,000 but you insure it for RM55,000, you’ll still only get RM45,000 if it’s written off — and end up paying more premium for nothing.
5. Ignoring Policy Expiry & NCD
Many drivers forget their policy expiry date and buy a new policy without transferring their No Claim Discount (NCD) — a costly mistake.
Your NCD can give you up to 55% discount on your premium!
Ensure your IC number and plate number are entered correctly so the system can auto-detect your NCD record.
Example:
Filing no claims for 5 years will enable your NCD to reach its peak of 55%.
Conclusion
When buying car insurance it is never only about finding the cheapest option, it’s about finding the best coverage that best suits your vehicle needs. By avoiding these common mistakes and using platforms like BJAK when buying car insurance that provides an invoice before you purchase to understand the cost without overspending.
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