Renewing car insurance sounds simple — just pay and get your road tax sorted, right? But many drivers lose money or end up with weak coverage because they overlook small but crucial details. The truth is, car insurance renewal mistakes can easily cost you more than you think. Here are the 5 common mistakes people make during renewal (and how you can dodge them).
1. Not Comparing First
Plenty of people just stick with the same insurer every year. The issue? Premiums can vary a lot between providers — sometimes by hundreds of ringgit. Nowadays, you can compare easily through JPJ/MyJPJ, MyEG, Pos Malaysia, or Bjak.
2. Wrong Sum Insured Value
Some drivers under-insure (too low), while others over-insure (too high). Both are bad deals. In either case, compensation won’t match your car’s actual market value.
3. Forgetting About NCD (No Claim Discount)
The NCD is a loyalty reward for years without claims, with discounts up to 55%. Many miss out simply because they never checked or applied it — and they end up overpaying.
4. Skipping Useful Add-Ons
Extra cover like special perils (flood), windscreen protection, or roadside assistance isn’t compulsory but can save you from big headaches later. Too many realize this only after it’s too late.
5. Renewing at the Last Minute
Waiting until your road tax is about to expire can backfire. Delays in the system, mismatched info, or late policy issuance could leave you stuck without coverage. Renewing a week or two earlier is much safer.
Smart Renewal vs Common Mistakes
| Situation | What Happens | Impact |
| Compare prices | Find cheaper premiums | Save hundreds |
| Accurate sum insured | Matches market value | Fair payout |
| Use NCD | Up to 55% discount | Lower premium |
| Add extra cover | Protection from flood/glass damage | Peace of mind |
| Renew early | Smooth policy & road tax process | Less stress |
FAQs
1. Is there a penalty if I renew late?
If your road tax expires, you can’t legally drive. JPJ can fine you if you’re caught.
2. How do I check my NCD?
You can check it online through Bjak or directly with your insurer.
3. Do I really need special perils cover?
Not compulsory, but strongly recommended if you live in flood-prone areas.
Conclusion
Car insurance renewal isn’t just a routine payment. A few careless moves or even a single common car insurance renewal mistakes could cost you money or leave you unprotected when it matters most. By avoiding these 5 pitfalls, you’ll save cash, get proper coverage, and breeze through the renewal process stress-free.
Read More:
What Is Comprehensive Car Insurance Coverage?
