Introduction
Most drivers know they must pay roadtax and quickly check their NCD (No Claim Discount) when renewing insurance. However, many don’t realize the relationship between roadtax & NCD. Roadtax determines your vehicle type and engine capacity, while NCD decides how much discount you get on your premium. Together, they significantly impact the total annual cost you pay.
What Is Roadtax?
Roadtax is the annual vehicle tax that must be paid to JPJ. It’s not just a sticker on the windshield — it shows that your vehicle is legally allowed on the road.
Roadtax is calculated based on several main factors:
- Engine capacity (cc)
- Vehicle type (car, van, 4×4)
- Registration location (Peninsular Malaysia, Sabah, Sarawak)
Example:
A small 1.3L car may only pay RM70–RM90 per year, but a large 2.0L SUV can reach RM300–RM400.
Larger engines = higher roadtax = higher risk and indirectly higher insurance premium.
What Is NCD and Why It Matters
NCD is a discount given to drivers who make no insurance claims in a year.
The longer you remain “claim-free,” the higher the discount — up to 55%.
| Claim-Free Years | NCD Discount |
| 1 year | 25% |
| 2 years | 30% |
| 3 years | 38.33% |
| 4 years | 45% |
| 5+ years | 55% (max) |
This is why many drivers try to maintain a high NCD — it’s the simplest savings tool.
The Relationship Between Roadtax and NCD in Premiums
Although calculated separately, these two factors influence the total annual cost:
- High roadtax = larger, more powerful vehicle = higher base premium.
- High NCD = bigger discount = lower final premium.
NCD acts as a “balancer” to reduce the burden when roadtax or base premium is high. Even for larger cars with higher premiums, NCD can save you 45–55%.
Real-Life Examples
Perodua Bezza 1.3L
- Base premium: RM800
- NCD 55% → discounted premium: RM360
- Roadtax: RM70
Honda Civic 1.8L
- Base premium: RM1,300
- NCD 45% → discounted premium: RM715
- Roadtax: RM280
The difference is significant, showing how these components complement each other in calculating annual car ownership costs.
Check Roadtax & NCD Together Using BJAK Calculator
No more manual calculation. Simply enter your license plate number in BJAK Calculator — the system will show:
- Your current NCD,
- Estimated insurance premium after discount,
- Roadtax based on engine capacity and state.
BJAK also provides quotes from panels like Takaful Malaysia, Allianz, and P&O Insurance, helping you choose the most suitable option.
Money-Saving Tips for Drivers
- Avoid minor claims if not necessary — maintain your NCD.
- Check prices on BJAK to compare options before renewing.
- Ensure vehicle data (engine, plate number) is accurate to avoid policy delays.
- Renew a few days before expiry to avoid lapses in coverage.
Conclusion
In short, roadtax and NCD are connected in determining insurance premiums, though not directly. Roadtax reflects vehicle type and engine power, while NCD rewards a clean driving record. By understanding and checking both simultaneously, you can plan insurance and roadtax budgets more effectively — saving time and money.
Read More:
NCD Insurance Calculator Malaysia: Check Discounts Up to 55%
NCD Drop Even Without a Claim, Why?
Car Insurance Calculator Malaysia: Find the Cheapest Policy Fast
