Starting your journey as a new driver in Malaysia can be exciting. However, there are some things required to do before you actually start your driving journey, and one of those things are renew your vehicle insurance & vehicle roadtax, without these 2 things besides having your driver’s licence you will soon see flashing lights in the rearview mirror & summons in your hands or worse your car being impounded. This guide breaks down the need to know basis about car insurance in Malaysia if you are actually a first-time driver & car owner.
Car Insurance, What is it?
Besides the document allowing you to allow your vehicle roadtax, it also provides you financial coverage based on what you have chosen as your policy for any vehicular mishaps. This is not an optional thing for debate, it is required by law. Therefore, every vehicle on the road must have at least basic insurance coverage before the owner can renew the road tax.
Types of Car Insurance in Malaysia
Not all policies are the same. In fact, Malaysian drivers can choose from three main types of car insurance:
| Type | What It Covers | Who It’s Best For |
| Comprehensive | Your car + other vehicles, theft, fire | New car owners, first-time drivers |
| Third Party, Fire & Theft (TPFT) | Other vehicles + theft/fire for your car | Older cars, drivers on a budget |
| Third Party Only | Damage to other vehicles and injuries | Cheapest option, minimal coverage |
What’s The Estimated Cost for Car Insurance?
Prices varies based on the different factors, for example”
- Car value: Higher value > Higher Premium
- Driver’s age & experience: Younger people drive often which poses as high risk
- No Claim Discount (NCD): If no insurance claims were made, your discount will gradually go up to 55%
- Coverage type: The better the coverage > The higher the Price
Here’s a rough comparison for a first-time driver in Malaysia:
| Coverage Type | Approx. Cost (RM) | Notes |
| Comprehensive | RM1,200–RM2,000 | Higher but best protection |
| TPFT | RM800–RM1,200 | Balanced choice |
| Third Party | RM500–RM800 | Cheapest, limited cover |
How To Purchase Your Car Insurance?
Buying car insurance is easier than ever. You no longer need to spend hours at a branch. Instead, you can complete the whole process online in minutes. Here’s how:
- Choose your coverage → Decide between comprehensive, TPFT, or third party.
- Compare prices → Using Online Platforms like Bjak/MyEG easily.
- Fill in your details → Car plate number, IC, and other basic information.
- Review the policy → Check the coverage and exclusions carefully.
- Make payment → Pay online with a card or FPX.
- Get your policy instantly → You’ll receive it by email or WhatsApp.
- Renew your road tax → Online Via MyJPJ,MyEG or Bjak
Since most things can be done digitally, the process can be quick & convenient.
Common Mistakes Made By First Time Drivers
When buying insurance, they tend to fall habit of cheap is best which can be financially burdering:
- Choosing the cheapest plan without checking coverage.
- Ignoring add-ons like roadside assistance or unlimited towing.
- Forgetting about NCD benefits.
- Delaying Renewal which causes gaps.
To avoid these problems later on, it’s always best to compare thoroughly to make sure everything suits your needs and potential risk.
Add-Ons That Are Worth it
Insurance doesn’t stop at the basic plan. In fact, add-ons can save you in unexpected situations. Popular options include:
- Roadside assistance (Tyre change / Battery Jumpstart).
- Unlimited towing for breakdowns.
- Special perils coverage (flood and natural disasters).
- Windscreen coverage for cracks or replacement.
Although add-ons increase your premium slightly, they provide better security on the road.
FAQs: Car Insurance
1. Can I drive without insurance?
No. Driving without insurance meaning you are driving without a valid Roadtax.
2.What’s the best insurance?
Comprehensive coverage is the best as it covers your car and against others, not to mention the additional services provided by the insurer.
3.Switching insurers later on?
Yes. Once your policy is up, you can choose another insurer to renew your policy.
4. Ways to Get The Cheapest Insurance?
Drive responsible to avoid risk and gradually build your NCD if no claims were made & choose necessary add-ons based on your location.
Conclusion
You may be thinking that renewing your car insurance in Malaysia can be financially burdening. However, with the right information and guidance it becomes easier. Starting with comprehensive coverage to ease your mind from potential risk, comparing best prices & benefits and also gradually building up your NCD for better discounts for future renewal. Therefore, with the smart choice you can protect your vehicle and yourself financially.
Read More:
Renew Roadtax Digitally Malaysia – Processing Time
