Introduction
Many people are still confused when talking about roadtax and insurance. Roadtax is not insurance — they differ in purpose, cost, and legal obligation. This article explains the key differences so Malaysian car owners know what must be paid and what is covered by insurance.
1. Function: Roadtax vs Insurance
- Roadtax: Annual payment to the government to legally operate a car. Does not cover damage or loss of the vehicle.
- Insurance: Financial protection in case of accidents, damage, theft, or other incidents depending on the policy type.
2. Consequences of Non-Payment
- Inactive roadtax: JPJ fines; vehicle not legally allowed on the road.
- Inactive insurance: No financial protection in case of accidents or loss; repair or replacement costs must be borne by the owner.
BJAK Tip: Ensure both road tax and insurance are active and valid to avoid fines and claim issues.
3. Digital vs Physical Roadtax
- Digital roadtax: Only updated in MyJPJ once purchased and active.
- Physical roadtax: Required for company cars, foreign passport holders, or e-hailing vehicles (renewable only at JPJ counters).
- Digital road tax does not replace insurance — valid insurance still needs to be purchased.
4. Tips to Avoid Confusion
- Check your roadtax status in MyJPJ after purchase.
- Drivers should never assume road tax is bundle with insurance purchase.
- Vehicle owners need to renew both insurance & roadtax anually.
Conclusion
Roadtax is not insurance. Malaysian drivers must purchase both insurance and road tax in order to drive legally. Understanding this difference ensures car owners do not mistakenly rely on roadtax alone and keeps all payments and protections valid and complete.
