Every rider wants to pay less for motorcycle insurance. That is fair, because the premium comes round every year together with your road tax.
The catch is that the cheapest policy on paper is not always the cheapest once something goes wrong. This guide shows you practical ways to lower your premium in Malaysia while still keeping the protection you actually need.
Why Motorcycle Insurance Prices Differ
Since 1 July 2017, insurers and takaful operators in Malaysia have set their own prices for comprehensive and third-party, fire and theft motor cover. Third-party-only cover is still priced under a fixed tariff. Allianz Malaysia’s liberalisation FAQ explains that, as a result, the price of a motor policy can differ from one insurer to another.
Insurers now look at more than engine size and the age of the vehicle. According to Zurich Malaysia’s guide to motor rating factors, they may also consider where you live, your claims history, the type of cover and any add-ons you choose.
Because comprehensive and third-party, fire and theft prices are no longer fixed, two insurers can quote quite different amounts for the same bike. Comparing several quotes before you renew is the simplest way to find a lower price.
Look beyond the headline premium. Check the type of cover, the sum insured, the excess and the add-ons included in each quote, so you are comparing like with like.
2. Consider both insurance and takaful
Motor takaful is a Shariah-compliant alternative to conventional motor insurance. You pay a contribution instead of a premium, and the cover works in a similar way.
Neither option is automatically cheaper. Pricing depends on each provider, so it makes sense to include both insurers and takaful operators when you compare.
Injury, death or property damage you cause to other people
Lowest
Third-party, fire and theft (TPFT)
Third-party cover plus fire and theft of your own bike
Middle
Comprehensive
TPFT cover plus accident damage to your own bike
Highest
Third-party cover is the cheapest, but it pays nothing for your own bike. That can make sense for an old motorcycle with a low market value. For a newer or financed bike, wider cover usually costs less in the long run. Our guide to motorcycle theft insurance coverage explains when theft protection matters most.
4. Set the right sum insured
The sum insured is the maximum your insurer will pay if your bike is stolen or written off. Insuring your bike for more than its market value raises your premium without giving you a bigger payout.
Add-ons such as flood cover or passenger cover give you extra protection for an extra premium. Some are worth it, depending on where and how you ride.
Ask yourself whether each add-on fits your situation. If you rarely carry a pillion or never park in flood-prone areas, you may not need every optional extra on the list.
6. Think carefully about a voluntary excess
An excess is the amount you pay yourself before the insurer pays the rest of a claim. Some insurers give a discount if you agree to a voluntary excess. Zurich Malaysia notes that a higher voluntary excess reduces the premium, but you pay more out of pocket when you claim.
Only choose an excess you could pay comfortably at short notice. Not every insurer offers this option for motorcycles, so check with the provider.
7. Protect your no claim discount
The no claim discount (NCD) rewards you for each year without a claim. For motorcycles, the scale goes from 15% after one claim-free year to 20% after two years and 25% after three years, according to Zurich Malaysia’s NCD guide.
An at-fault claim resets your NCD to 0% at the next renewal. For a small scratch, paying for the repair yourself can sometimes cost less than losing your discount. Read more in our guide to motorcycle NCD.
8. Renew on time
Letting your policy lapse means you cannot legally ride or renew your road tax. It can also make your next renewal more complicated. Set a reminder and renew a little before the expiry date. Our guide on renewing motorcycle insurance online walks you through the steps.
Be Honest When You Apply
Giving wrong or incomplete details to get a lower price is a false saving. Under Paragraph 5 of Schedule 9 of the Financial Services Act 2013, you must take reasonable care not to make a misrepresentation when you buy a consumer insurance policy.
As Zurich Malaysia’s duty of disclosure notice explains, failing to do so can lead to your claim being refused or reduced, or your policy being cancelled. Declare modifications, your correct address and how you use the bike, such as for food delivery.
Ride Safely to Keep Your Premium Low
A clean riding record helps you build your NCD and may count in your favour when insurers set your price. Traffic offences and frequent claims can push your premium up.
Safe riding also protects something more valuable than your premium. Wear a proper helmet, keep your bike well maintained and avoid riding when you are tired.
Cheap vs Good Value: A Quick Check
Before you pay, run through this short checklist:
Does the policy cover what you would struggle to pay for yourself, such as theft of a newer bike?
Is the sum insured close to your bike’s current market value?
Is your NCD correctly applied to the quote?
Could you afford the excess if you needed to claim tomorrow?
Have you compared at least a few insurers and takaful operators?
If you can answer yes to these questions, you are likely getting good value and not just a low price.
Conclusion
The cheapest motorcycle insurance is the policy that gives you the protection you need at the lowest fair price. Compare quotes, keep your NCD, set the right sum insured and skip extras you do not need. Above all, never cut corners on honesty or let your cover lapse.
Bjak lets you compare motorcycle insurance and takaful quotes from a range of insurers and takaful operators in one place, and renew your road tax at the same time where available. Get a free motorcycle insurance quote on Bjak and choose the plan that suits your bike and budget.
Which insurer offers the cheapest motorcycle insurance in Malaysia?
There is no single cheapest insurer for everyone. Comprehensive and TPFT prices are set by each insurer and takaful operator based on your bike and risk profile, so the cheapest option depends on your situation. Comparing quotes is the only reliable way to find out.
Is third-party motorcycle insurance the cheapest option?
Yes, third-party cover usually has the lowest premium because it only covers damage, injury or death you cause to other people. It does not pay for theft of, fire damage to or accident damage to your own bike.
Is motor takaful cheaper than motorcycle insurance?
Not always. Takaful contributions and insurance premiums are both priced by each provider, so either can be cheaper for a given bike. Compare both before you decide.
How much NCD can I get for my motorcycle?
The motorcycle NCD scale goes from 15% after one claim-free year to 20% after two years and a maximum of 25% after three years. An at-fault claim resets it to 0% at your next renewal.
Will a higher sum insured make my claim payout bigger?
Not beyond your bike’s market value. Over-insuring raises your premium without increasing what you receive, while under-insuring can reduce your claim. Aim for a sum insured close to the current market value.
Can I pay for motorcycle insurance by instalment?
Bjak offers instalment plans and Buy Now, Pay Later options for eligible customers. Payment options, fees, terms and eligibility vary by provider, so check what is available when you get your quote.
Nabil Farhan· · 6 min read
