Vehicle owners are subject to vehicle insurance and road tax renewal every year. Even so, there might be some grey areas that not everyone is aware of when it comes to these two.
This can be confusing, especially for first-timers, right?
“Are these two compulsory? Can I just renew one of these only? Which one should I renew first?”
These might be among the common questions that you have in my mind. You may put your worry rest assured. Let us help you answer some questions below.
Function & differences between car insurance and roadtax
Read the brief notes about what car insurance & roadtax is for.
Roadtax: a type of tax imposed on all motor vehicles in Malaysia before they are legal for use on the road. The Road Transport Department collects the road tax to pay for maintaining the road network nationwide.
Insurance: protects the policyholder against the third party claim in the event of an accident caused by them. They also provide coverage against fire, theft, and damage to cars.
However, the coverage depends on the policies that you purchase.
The followings are the differences between roadtax and car insurance that you should understand:
| Roadtax | Car insurance |
| Subject to renewal as regulated under Road Transport Act 1987 | Must renew before renewing roadtax. The insurance coverage protects the car against the third-party claim and allows you to claim in the event of car theft or fire |
| The price remains every year as long as you do not change your car | The price changes every year. Insurance premiums can get lower given if your NCD rate is unaffected. However, the premium can be higher if you purchase any additional coverage during the renewal |
| Renewable for a period of 6 months or 1 year | Needs to be renewed for a period of 1 year |
| No discount on roadtax prices | Get a discount from the selected insurance company |
| No additional charges will apply | There may be additional charges for a number of factors |
Frequently asked questions about car insurance and roadtax
Is it compulsory to renew both insurance and roadtax?
Yes, it is. As a vehicle owner, you must have VALID insurance and roadtax before using it on the road.
Roadtax and insurance are subject to annual renewal before the expiration date to prevent legal action.
When is the best time to renew insurance and roadtax?
For insurance renewal, you can renew it as early as two months before it expires. Meanwhile, for roadtax, you can only renew it after renewing the insurance.
You may opt to renew them online simultaneously, for example, at Bjak.
Can you renew roadtax without insurance?
No. You need to have valid insurance in place before you can renew the roadtax.
Why is roadtax price vary across vehicle types?
Roadtax prices for vehicles will vary across several factors. Here are some factors that determine roadtax prices in Malaysia.
- Engine capacity
- Geographical location
- Type of vehicle
- Vehicle ownership
- Usage of the vehicle
Can one insurance policy cater to multiple vehicles?
No, there is only one insurance policy per vehicle.
Can you claim against motorcycle accidents using car insurance?
No. Car insurance can only be used for claims for cars only, and vice versa.
Please note that an insurance policy is only valid for one vehicle only.
In the event of a car accident, can you claim with an expired driving licence?
Yes, you can file an insurance claim in the event of an accident regardless of the status of your driving licence. This is because you have insurance coverage in place to provide your car coverage.
However, please note that you are not liable for an insurance claim if you DO NOT possess a driving licence.
Can you renew roadtax with outstanding/blacklisted summons?
No. During the renewal process, your outstanding summons and blacklist records will be reflected in The Road Transport Department (JPJ) and The Royal Malaysia Police (PDRM) database systems.
Therefore you must make payment for all your outstanding traffic offences recorded in order to proceed with this renewal.
Can you renew insurance on behalf of your family member?
Yes, the insurance renewal process is easy and can be done online. You have to provide the necessary details during the insurance renewal.
Can you renew with the same insurance every year?
Yes, you can. However, you are advised to change your insurance policy every year. This is because you may not be paying the lowest price in the market.
Please compare multiple insurers first before proceeding with the insurance renewal.
Can you cancel the insurance policy before it expires?
Yes. You can cancel the car insurance for several purposes, such as:
- Intend to sell the car
- Intend to change the insurer
- Misbuying insurance policy
You may read our previous article to learn the steps to cancel your insurance policy.
Ensure your car insurance & roadtax validity!
We hope this article helps to provide you with meaningful insight regarding car insurance and roadtax.
Bjak is one of Malaysia’s biggest insurance comparison sites, with more than 10 insurance brands to choose from. Get your free insurance quote at Bjak today!
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