Introduction
Ask most car owners, and many will say insurance and roadtax are the same — since both must be renewed yearly. Where in reality they are 2 separate documents with different functions. Insurance is your vehicle coverage and Roadtax is a goverment tax which allows you to legally drive on the road.
Check the breakdown for the difference.
1. What Is Car Insurance?
Car insurance is coverage to protect against losses due to accidents or damages to your car. When purchasing your policy the company will cover the cost but depending on the coverage type chosen.
There are 3 types of coverage to choose from:
- Third Party Only – Covers damage or injury caused to others.
- Third Party, Fire and Theft – Adds protection if your car is stolen or catches fire.
- Comprehensive – Covers both third-party and your own vehicle’s damage.
Insurance must be activated first before you can renew your roadtax through JPJ, MyJPJ, MyEG, Pos Malaysia, or BJAK.
2. What Is Roadtax?
Roadtax (also called cukai jalan) is an annual payment to the Malaysian government through JPJ. It certifies that your vehicle is legally allowed to operate on public roads.
The rate depends on several factors:
- Vehicle type (car, motorcycle, lorry)
- Engine capacity (cc)
- State of registration (Peninsular, Sabah, or Sarawak)
If your roadtax expires, your vehicle becomes illegal to drive — and you could be fined if caught on the road.
3. Functional Differences
Here’s a quick comparison between insurance and roadtax:
| Aspect | Insurance | Roadtax |
| Purpose | Financial protection in case of accident/theft | Legal license to use the vehicle on the road |
| Authority | Insurance Company (regulated by Bank Negara Malaysia) | Road Transport Department (JPJ) |
| Validity Period | Usually 12 months | Usually 12 months |
| Renewal Requirement | Must have active insurance to renew roadtax | Cannot renew without valid insurance |
| Documents Needed | eCoverNote / Insurance Policy | Roadtax receipt / physical or digital proof |
4. Why Both Are Important
Both are important to ensure protection and validity.
- Without insurance, you cannot renew roadtax.
- No insurance = No roadtax renewal to drive on the road legally.
Both are essential, each serving a different purpose:
- Insurance → protects your finances when accidents occur.
- Roadtax → legally validates your right to drive on the road.
5. How to Renew Easily
Nowadays, both can be renewed fully online:
- BJAK: Compare insurance prices, select your policy, and renew roadtax all in one place.
- MyJPJ: View and activate your digital roadtax — no need for physical stickers.
- Pos Malaysia / MyEG: For those who still prefer a printed roadtax slip.
No more long queues — everything can be done in just a few minutes.
Conclusion
Insurance and roadtax may seem like a package deal. However they are both different documents, where one is for your vehicle coverage and the other is tax to legally drive on the road. Keeping both active is essential to assist in avoiding complications when accidents occur. For a faster and transparent renewal process, do it directly through BJAK — quick, secure, and fully online.
Read More:
What Happens If Roadtax Expires
