The Perodua Axia is one of the most affordable cars to own in Malaysia, and its small 998cc engine keeps road tax at the lowest rate. Insurance is a different story. Your premium depends on your car’s value, the cover you choose and your No Claim Discount (NCD), so two Axia owners can pay very different amounts.
This guide explains the Axia road tax rate for 2026, what affects your insurance premium, how third-party and comprehensive cover compare, and simple ways to keep your renewal costs down.
Perodua Axia road tax price in 2026
Road tax in Malaysia, officially called the Motor Vehicle Licence (LKM), is based on engine capacity. Every Axia uses a 998cc petrol engine, which places it in the lowest band for private cars: 1,000cc and below.
Region
Engine capacity
Road tax per year
Peninsular Malaysia
1,000cc and below
RM20
Sabah and Sarawak
1,000cc and below
RM20
This flat RM20 rate applies to private cars registered to individuals, and the same amount applies in Sabah and Sarawak. It follows JPJ’s official road tax rate guidelines. Bigger engines pay more, and the gap grows quickly above 1,600cc.
Unlike road tax, there is no single insurance price for the Axia. Each insurer works out your premium from several details, including:
The market value of your car
The type of cover you choose
Your NCD
Where your car is registered
Your car’s engine capacity
Any add-ons you include
A newer Axia usually has a higher market value than an older one, so its comprehensive premium tends to be higher. An Axia that is several years old will often cost less to insure comprehensively because the insured amount is lower.
For this reason, be careful with fixed price ranges you see online. The quickest way to get a figure that fits your car is the BJAK car insurance calculator. Keep in mind that the calculator gives an early estimate, not a final quotation. Your actual price may change once an insurer checks your details and the cover you select.
What affects your Axia insurance premium?
1. Market value of your car
Market value has the biggest effect on a comprehensive policy, because it sets how much the insurer may have to pay if your car is damaged or stolen. A newer Axia carries a higher market value than an older model, so the premium follows.
2. Your NCD
NCD is a discount you earn for each year you go without making a claim. For private cars in Malaysia, it starts at 25% after one claim-free year and rises to a maximum of 55% after five consecutive claim-free years, as explained by Zurich Malaysia.
Check your current rate with the BJAK NCD checker before you renew, so you know whether your quotation reflects the right discount.
3. Type of cover
Third-party cover is the basic option. It protects you against liability to other people, such as damage to their car or property, but it does not pay for damage to your own Axia.
Comprehensive cover is wider. It also pays for damage to your own car from an accident, as well as fire and theft, subject to the terms of your policy. Read more about third-party car insurance and the types of car insurance cover before you decide.
4. Add-ons
You can extend your policy with optional cover. Common add-ons include:
Windscreen cover
Special perils, such as flood and landslide
Personal accident cover
Legal liability of passengers
Towing and roadside assistance
Each add-on increases your premium, so choose only the ones that match the risks you actually face.
Third-party vs comprehensive cover for the Axia
Coverage
Third-party
Comprehensive
Damage to other people’s vehicles or property
Yes
Yes
Accident damage to your own Axia
No
Yes
Theft of your Axia
No
Yes, subject to policy terms
Fire damage to your Axia
No
Yes, subject to policy terms
Premium
Usually lower
Usually higher
Third-party cover may suit an owner of an older Axia who only needs basic protection. If your car is newer or still under a hire purchase loan, comprehensive cover is usually the safer choice, and many financiers require it.
The right option depends on your car’s condition, how much protection you need and your budget.
Example: how NCD lowers your Axia premium
Say the base premium for your Axia policy is RM800, and you have the full 55% NCD.
RM800 − (55% × RM800) = RM360
After the NCD is applied, your base premium falls to about RM360, before any add-ons and other charges. This is only a simple illustration. Your real premium depends on the insurer and the quotation you receive.
Every claim-free year helps you keep or build your NCD. For small repairs, it can sometimes cost less to pay yourself than to lose part of your discount at renewal.
Insure at the right value
Make sure your sum insured matches your car’s current market value. Insuring above it means a higher premium than you need, while insuring below it can leave you paying part of a claim yourself.
Compare quotations
Prices and benefits differ between insurers. Get an early estimate from the BJAK car insurance calculator, then compare real quotations side by side before you pay.
Choose add-ons carefully
Do not tick every add-on by default. Think about where you drive and park, then pick the cover you really need. For more ideas, read how to save up to 25% on your car insurance premium.
Road tax and insurance are not the same thing
Road tax is the licence that lets you use your car legally on public roads. Car insurance gives you financial protection against the risks listed in your policy.
You need valid insurance before you can renew your road tax, so most owners renew both together. Our guide on road tax vs insurance renewal explains how the two are linked.
What is sum insured for an Axia?
The sum insured is the amount your car is covered for under the policy. For a policy based on market value, it should reflect what your Axia is worth today, not the price you paid when it was new.
For example, an Axia bought five years ago has lost value since then. Its sum insured at renewal should be lower than its original showroom price. Learn more about how sum insured works in vehicle insurance.
Conclusion
Road tax for the Perodua Axia is RM20 a year for a private car, whether you live in Peninsular Malaysia, Sabah or Sarawak. Insurance has no fixed price, because it depends on your car’s value, your NCD, the cover type and the add-ons you choose.
Before you renew, check your NCD, confirm the right sum insured and decide how much cover you need. Owners of other compact cars can also read our Myvi road tax and insurance price guide.
BJAK lets you compare car insurance quotations from multiple insurers and renew online. Get a free car insurance quotation from BJAK and find a policy that fits your Axia and your budget.
The Axia has a 998cc engine, so road tax for a privately owned Axia is a flat RM20 a year. The same rate applies in Peninsular Malaysia, Sabah and Sarawak.
How much is insurance for a Perodua Axia?
There is no fixed price. Your premium depends on your car’s market value, cover type, NCD, registration area and add-ons. Use the BJAK car insurance calculator for an estimate, then compare actual quotations.
Should I choose third-party or comprehensive cover for my Axia?
Third-party cover is cheaper but only covers your liability to other people. Comprehensive cover also protects your own Axia against accident damage, fire and theft, subject to policy terms, and is usually required while the car is under a hire purchase loan.
Does NCD lower my Axia insurance price?
Yes. NCD for private cars rises from 25% after one claim-free year to a maximum of 55% after five consecutive claim-free years. For example, a RM800 base premium drops to about RM360 with 55% NCD, before add-ons.
How can I lower my Axia insurance premium?
Keep your NCD by avoiding unnecessary claims, insure your car at its current market value, choose only the add-ons you need and compare quotations from different insurers before renewing.
Can I renew my Axia road tax without insurance?
No. You need valid car insurance before you can renew your road tax. Many owners renew both together online so they do not miss either due date.
Nabil Farhan· · 6 min read
