All registered vehicle owners must have their insurance policy renewed annually. The coverage consists of benefits that usually vary across insurance companies.
Given that a typical car insurance policy lasts for 12 months, can it be cancelled before it expires?
Read on as we share some useful information regarding the cancellation of an insurance policy.
Can you cancel your insurance policy?
Yes, you can cancel your insurance policy at any time. Most of the time, you are allowed to cancel it due to the following reasons:
- Planning to sell the car
- Changing to another insurance company due to certain reasons
- Choosing the wrong policy by mistake
(Example: You intend to get comprehensive insurance (1st party), but you key in wrong information and get third party insurance instead)
Ways to cancel car insurance
Cancellation procedure varies across insurance companies
You can choose to cancel your car policy on your own.
However, you must ensure that you know the proper procedure required by your insurance company.
This is because each insurance company and takaful operator has its policy cancellation procedure.
Contact customer service
You are advised to refer to customer service to know the cancellation procedure. Request their help to assist you with the procedure and any required documents.
You can reach out to your insurer to get more information. Get the hotline number of your insurance company online in order to contact them.
Cancel roadtax first if it has been renewed
It is compulsory to cancel your roadtax before proceeding with insurance cancellation. You can cancel the roadtax at any JPJ branch near you.
You need to present your roadtax at the JPJ counter. Without roadtax, you cannot proceed with insurance cancellation.
After receiving verification, visit any insurance company branch to cancel the insurance policy as the final step.
Directly deal with the insurance company if you have not renewed your roadtax
For insurance cancellation, you do not have to go to the JPJ if you have yet to renew your roadtax.
You may submit the notice to your insurance company to let them know of your intention to cancel your insurance policy right away. Most insurers will give time, typically 7 days, for the cancellation.
You also have to submit the original certificate of insurance or make a statutory declaration if you have lost or damaged the certificate within the period given.
Insurance refund
Upon cancellation, you are eligible to get a refund of the premium based on the designated short-term period. Note that the refund varies across insurers.
You will receive the refund within 2 to 4 weeks via online transaction.
Choose your insurance policy carefully
Although insurance cancellation is permissible, we advise you to take your time before purchasing your insurance policy.
Do thorough research by comparing multiple insurance companies before buying any policy.
That way, you will be able to see the coverages offered by multiple companies and choose the one that best suits your budget and needs. This will therefore save you from having to go through the hassle of cancelling your insurance policy and looking for another.
For your convenience, use the online platform, Bjak to compare easily up to 15 leading insurance brands in Malaysia. Get your free car insurance quotes online in just 3 minutes.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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