Best Auto/Car Insurance

Car insurance is a type of financial protection that compensates you if anything happens to your car. In Malaysia, every vehicle must be covered by an insurance policy before it is given a road tax and allowed to be driven on public roads.

• How does car insurance work?

  Car insurance works by helping cover a certain amount of costs (up to your coverage value) for repairing your car in the case that you have an accident or something happens to your car. In exchange for this coverage you pay an annual fee to your provider.

• Where do I buy car insurance?

  You will normally be offered car insurance when you first buy a car. However, there are a number of other insurance providers available if you wish to change your provider. Check out our friendly car insurance tool to help you find the coverage that you need.

• Can I buy car insurance online?

  Yes, you can. Insurance providers now offer their services through the internet. If you're not sure where to start, check out our friendly car insurance tool.

• What's the difference between comprehensive, third-party fire & theft, and third-party only insurance?

  Comprehensive insurance covers your own car's damage plus third-party liability, and is the most complete option. Third-party, fire and theft (TPFT) covers third-party liability plus fire and theft to your own vehicle, but not accident damage to your own car. Third-party only is the minimum legally required cover in Malaysia and only pays for damage or injury you cause to others, leaving your own vehicle entirely uncovered.

• How do I change my car insurance provider?

  The easiest way to change your insurance provider is simply to sign up with a new one when your existing policy is about to end. You can also buy a new car insurance policy from a new provider at any time by contacting their agents or through one of the many online options

• Can car insurance be transferred to a new owner?

  Yes, many providers will allow you to transfer your car insurance policy to a new owner if you sell your car (or give it away). However, take note that your no-claim bonus (NCB) cannot be transferred to a new owner.

• Where can I get free car insurance quotes?

  All car insurance providers will provide you a quote for free. Contact one of their agents to find out more.

• What factors affect my car insurance premium in Malaysia?

  Since motor insurance de-tariffication in 2017, Bank Negara Malaysia allows insurers to price risk-based premiums rather than a fixed industry rate. Your premium is mainly determined by your car's sum insured (market or agreed value), engine capacity, your car's age, your location, your No Claim Discount, and your claims history. Occupation and how frequently you drive can also factor into some insurers' risk assessments.

• What documents do I need to make a car insurance claim?

  To file a car insurance claim in Malaysia, you'll typically need your insurance policy or certificate number, a copy of the police report made within 24 hours of the incident, your vehicle registration card (geran), your identity card, and photographs of the damage. Your insurer may request additional documents depending on the nature of the claim, so contact them directly as soon as possible after an incident to confirm the exact requirements.

• Can my car insurance provider deny a claim?

  Yes, your insurance provider can deny a claim if the cause of the damage is not covered by your policy. The following are the reasons:
  
  1. You were the cause of the damage but only have third party coverage
  2. You were not insured against the type of damage done (such as flooding or landslides)
  3. The part of your car damaged was not covered by the policy.

• What is No Claim Discount (NCD) and how much can I save?

  No Claim Discount (NCD) is a premium discount you earn for every consecutive year you don't make a claim on your car insurance. In Malaysia, NCD starts at 25% after one claim-free year and can rise to a maximum of 55% after five or more claim-free years. NCD belongs to you as the policyholder, not to your car or your insurer, so it stays with you even if you switch providers or sell your vehicle.

• What's the difference between agreed value and market value car insurance?

  Agreed value is a payout amount you and your insurer fix at the start of the policy, so you know exactly what you'll receive if your car is written off or stolen, regardless of market fluctuations. Market value coverage instead pays out based on your car's market value at the time of the claim, which is usually lower than the original purchase price due to depreciation. Agreed value policies typically cost slightly more but remove the uncertainty of a depreciation-based payout.

• Does car insurance cover flood damage in Malaysia?

  Standard comprehensive car insurance in Malaysia does not automatically cover flood damage. Flood, along with other special perils like landslides and windstorm damage, requires a separate add-on typically called Special Perils Cover, which usually costs an additional amount on top of your base premium. Given Malaysia's annual monsoon season, this add-on is worth considering, particularly for cars parked in flood-prone areas.

• Is car insurance compulsory in Malaysia?

  Yes. Under the Road Transport Act 1987, every vehicle on Malaysian roads must be covered by at least third-party motor insurance before it can be issued or renewed a road tax. Driving without valid insurance is a legal offence, and you will not be able to renew your road tax without an active insurance or takaful certificate from a Bank Negara Malaysia–licensed provider.

• Do I need special insurance for an electric vehicle (EV)?

  Electric vehicles can generally be insured under standard comprehensive car insurance, but a growing number of Malaysian insurers now offer EV-specific policies or add-ons that address battery degradation, home charger coverage, and charging cable theft. If you own an EV, it's worth checking with your insurer whether these EV-specific protections are included or available as an add-on, since standard comprehensive cover may not address battery-related risks by default.

• Does my car insurance cover me for Grab or e-hailing?

  Standard private car insurance in Malaysia does not cover commercial use, including e-hailing services like Grab. To drive legally and stay covered while e-hailing, you need an e-hailing extension or a dedicated e-hailing insurance policy, which several major insurers offer as an add-on to comprehensive cover. Driving for Grab without this extension can result in a denied claim if you're involved in an accident while on a trip.

• Are all car insurance providers listed on iMoney licensed by Bank Negara Malaysia?

  Yes. All conventional insurers and takaful operators featured on iMoney are licensed and regulated by Bank Negara Malaysia (BNM), Malaysia's central bank and the primary regulator for the insurance and takaful industry. You can independently verify any provider's licensing status on BNM's official website before purchasing.