5 Important Questions About Car Insurance

Prior to renewing your car insurance, please ensure to learn some of the essential things before you proceed.

Read this article as we provide some tips as a reference.

Car Insurance

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Are you planning to purchase car insurance? Hold up! Let us share some important questions about car insurance before you proceed.

#1 What type of insurance policy that you need to purchase?

There are three types of insurance policies that you can consider purchasing. Each policy coverage differs from one another.

Types of car insurance policies

Refer to the following factors to determine the suitable policy type for your vehicle.

1. Vehicle age

  • Vehicles below 10 years or purchased using a bank loan are subject to purchase comprehensive policy
  • Vehicles above 10 but below 15 years are recommended to get the third party, fire, and theft policy
  • or vehicles above 15 years can consider purchasing the third party policy

2. Frequency of use

  • You are recommended to purchase comprehensive insurance, tagged with additional coverage if you often use the vehicle. Examples are windscreen coverage, special perils, and others.

3. Budget

If you are on a tight budget, you can purchase the most basic policy which is third-party insurance to cover an old car. This policy insurance will protect you against third-party liability. However, if you have a budget, you can comprehensive insurance and purchase any necessary add-on covers.

*Note: You may check if the insurer if they allow you to purchase a comprehensive policy

#2 Who is the authorized driver in your policy

Many insurance companies will include “All Driver coverage” in the policy.

However, some insurers only offer “Additional coverage” for up to two individuals to the policyholders. If this is the case, ensure to extend coverage to occasional drivers such as family members.

If someone unauthorised is driving your car and causes the accident, you will have to pay mandatory excess of as much as RM400.

#3 What forms of coverage does car insurance provide?

To your knowledge, comprehensive insurance does not cover all kinds of protection. These situations are examples of exclusions in the car policy

  • Cracked windscreen
  • Damages caused by natural disasters such as floods
  • Injury or death due to an accident caused by own negligence

However, you can purchase additional coverages to ensure protection in such situations.

#4 Should you renew the same insurance every year?

Some may be comfortable renewing their annual insurance with the same insurance provider.

However, you are not recommended to practice that. Renewing with the same insurance means you may be paying a higher premium compared to the market price.

Therefore, we recommend you compare multiple insurance companies before renewing. Compare up to 3 insurers to differ the coverage and price in total. This way, you can see which one offers an affordable price with sufficient coverage.

#5 Will insurance premium increase or decrease?

In general, your insurance premium will get a lower premium by the years.

One of the contributing factors to lower premiums is your current NCD (No Claim Discount). The higher your NCD, the cheaper the insurance premium you will get.

However, any claim made under your policy will hurt your NCD rate. Thus, causing your next premium to soar. You may refer to our previous article to learn more about NCD: A Guide To No Claim Discount (NCD).


Bjak is one of Malaysia’s biggest insurance comparison sites, offering 15 insurance brands. Get free car insurance quotes at Bjak and renew your insurance and roadtax in just 5 minutes.

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