Used Car Insurance Malaysia
Buying a second-hand car? Find out what affects your insurance price, how NCD works and what to check before you insure your used car.
Top 10 Insurtech Company Globally (2026)Do used cars need car insurance?
Yes. A used car needs valid motor insurance, just like a new car.
The difference is that the car's age, current value and condition, and your own insurance history, can affect the premium and the cover you choose. You can choose from the main types: comprehensive, third-party, fire and theft (TPFT) or third-party car insurance.
For most used-car owners, the real question is not whether the car can be insured, but how much cover makes sense for its current value and condition.
Can I buy car insurance for a second-hand car?
Yes. You can get insurance for a used car, subject to the insurer's requirements. If you have just bought it, make sure the policy details match the registered owner and the vehicle.
Value, not price
The car's current market value, rather than what you paid for it, can be an important factor when setting the sum insured.
What type of insurance is best for a used car?
There is no single type that is right for every used car. It comes down to the car's value, its condition and how much protection you want.
Comprehensive insurance
Covers your own car against accidental damage, fire and theft, as well as third-party liabilities, subject to the policy terms. It may make sense if the car is still valuable, is financed, or you want protection for damage to your own car. Learn more about comprehensive car insurance.
Third-party, fire and theft
Covers third-party liabilities, plus fire and theft involving your own car. It does not cover accidental damage to your own car. Learn more about TPFT car insurance.
Third-party insurance
Basic protection for injury, death and property damage you cause to other people. It does not cover damage to your own car. Learn more about third-party car insurance.
Weigh the cost against the car
Compare the cost of comprehensive cover with what the car is worth before choosing.
How much is insurance for a used car?
There is no fixed price.
Your premium can depend on
- The car
Model, age, current value and engine capacity.
- You
Driver profile, location and NCD.
- Your cover
Type of cover, selected add-ons and the insurer.
The price you paid for the car is not necessarily its insured value. Insurers generally consider the car's current value when setting the sum insured, so two used cars that cost the same to buy can still have different premiums.
Does a used car get the previous owner's NCD?
No. The previous owner's NCD does not automatically come with the car when you buy it. Your NCD is based on your own eligible insurance history.
- First car
If you do not have an eligible NCD, you generally start at 0%.
- Already have NCD
If you have an eligible NCD from another vehicle, you may be able to transfer it, subject to the insurer's rules.
You can check your NCD with the NCD checker.
How does the car's value affect used car insurance?
A used car is usually worth less than when it was new, but how much less varies a lot with the model, age, condition and current market demand.
Your sum insured should be appropriate for the car's current value. Getting it wrong costs you either way:
- Set too low
Your claim payout may be affected.
- Set too high
You may pay more premium without getting any extra claim benefit.
Market value vs agreed value for a used car
When buying insurance, you may come across two ways of setting the car's value:
- Market value
Your car is insured based on its market value at the time of a covered loss.
- Agreed value
You and the insurer agree on the insured value when the policy starts, subject to the policy terms.
Not every insurer offers both options for every vehicle, so check what is available for your car. Read more about market value vs agreed value.
What should you check when buying insurance for a used car?
Six things to check before you pay for the policy.
What documents do I need to insure a used car?
The documents depend on the insurer and your situation. You may need:
If you have just bought the car, make sure the ownership and insurance details are updated correctly.
JPJ's ownership-transfer process has different requirements for individual and non-individual owners, including companies. Buying for a business? See company car insurance.
Can I insure a used car before ownership transfer?
Ownership and insurance requirements can vary with the situation and the insurer.
What matters is that the policy ultimately matches the registered owner and the vehicle details. If the ownership is still being transferred, check the correct process with the insurer or BJAK before making payment.
A mismatch between the policyholder and the registered owner can cause problems when you make a claim.
How to save on used car insurance
Five ways to pay less without cutting the cover you need.
Compare insurers
Different insurers can offer different prices for the same used car.
Check your NCD
An eligible NCD can significantly reduce your premium.
Set the right sum insured
Don't under-insure the car just to make the premium cheaper.
Choose add-ons carefully
Only add protection that makes sense for your car and how you use it.
Compare the same level of cover
When comparing prices, make sure the quotes have the same type of cover, sum insured and add-ons.
Used car insurance FAQs
It can be, but not always. Premiums depend on factors such as the car's value, model, age, driver profile, NCD, location and insurer.
No. The previous owner's NCD does not automatically transfer to you. Your NCD is based on your own eligible insurance history.
You may be able to transfer an eligible NCD from another vehicle, subject to the insurer's rules.
It depends on the car's value, condition and your preference for protection. Compare the cost of comprehensive cover with the value of the car before choosing.
Not necessarily. The insurer may use the car's current market value when determining the sum insured.
Yes. Enter your vehicle details on the BJAK car insurance quote page and compare the available options.