Car insurance and roadtax: 26 questions car owners ask
From renewing roadtax to what to do after an accident, these are the questions car owners ask most. Each answer comes first. Want to renew now? Tap “Ask Lulu”.
29 questions
My car insurance is expiring. How do I renew online, and what do I need?
You need the plate number, the owner’s IC number and your postcode, plus the car grant (VOC) details for a first renewal. You can renew through the insurer’s website, a renewal platform or an agent. With Lulu, WhatsApp her the details, she sends a quote, and the policy is issued once you pay.
Can I renew roadtax together with insurance?
Yes, and that is the usual way. Roadtax needs valid insurance, so once the insurance is in force the roadtax can be renewed straight away, keeping the dates in line.
Do I still need a roadtax sticker? How do I see my digital roadtax in MyJPJ?
Private cars owned by Malaysians now use digital roadtax, so a sticker is generally not needed. Download and log in to the MyJPJ app to see your roadtax and expiry date, and show it if asked. Some vehicle categories may still need a printed copy.
What is the difference between comprehensive, third party fire and theft, and third party?
Comprehensive covers damage to your own car, fire, theft and your liability to third parties. Third party, fire and theft covers third-party liability plus fire and theft of your car, but not accident damage to your car. Third party only covers injury, death or property damage you cause to others.
Should an old car have comprehensive or just third party cover?
It depends on the car’s value and how much loss you can absorb. For a low-value old car you could repair yourself, some owners choose third party to save money. If the car is your main transport, repair costs would hurt, or you live in a flood-prone area, comprehensive is still safer.
What is NCD (No Claim Discount)? How do I check my NCD?
NCD is the discount on your premium for claim-free years. For private cars it typically starts at 25% and rises each year to a maximum of 55%. To check your NCD, look at your last policy, ask your insurer or agent, or use the NCD check on some insurer and renewal websites with your plate and IC number.
I changed cars. Can my NCD move to the new car?
Yes. NCD belongs to the owner, not the car. When you sell or replace a car, the NCD can be transferred to a new car in the same owner’s name, but one NCD can only be used on one car at a time. Ask your insurer or agent to arrange it.
I made a claim. What happens to my NCD and next year’s premium?
For an at-fault own damage claim, NCD is generally reset to zero at the next renewal, so the premium is calculated without the discount. Going from 55% to 0% can more than double the premium. Windscreen claims and not-at-fault KFK claims usually don’t affect NCD.
Should I claim for a small accident or pay for the repair myself?
Compare the repair cost with the extra premium you would pay over the next few years after losing your NCD. If the repair costs less than the discount you’d lose, paying yourself is usually better. Send Lulu the repair quote and your NCD if unsure. If anyone is injured or another party is involved, always make a police report and inform the insurer.
What is betterment in car insurance?
Betterment is the part of a repair bill you may have to pay when old damaged parts are replaced with new ones on an older car, because the new part makes the car better than before. It generally applies to cars older than about five years and rises with the car’s age; check your policy for the exact scale.
What is a cover note in insurance?
A cover note is temporary proof of insurance issued when you buy or renew a policy, before the full policy document is issued. It shows the vehicle, the period and the cover, and is accepted for roadtax renewal.
What does legal liability to passengers mean?
It is an add-on that covers your legal liability if passengers in your car are injured or killed because of the driver’s negligence. A standard private car policy may limit or exclude passengers, so the add-on fills that gap.
How do I set my car’s sum insured? What is market value vs agreed value?
The sum insured should be close to the car’s current market value. Market value pays the car’s value at the time of a total loss. Agreed value pays an amount agreed when the policy started. Newer cars often use agreed value to avoid a shortfall on total loss.
What happens if my car is under-insured?
If the sum insured is below the car’s actual value, the insurer may pay repairs proportionally, and on total loss only pays the sum insured, leaving you with the difference. Lowering the sum insured to save premium often backfires.
Is flood damage covered? Which add-on do I need?
Standard comprehensive cover usually excludes floods, landslides and other natural disasters. You need the special perils add-on. Some parts of the Klang Valley flood regularly, and the add-on is not expensive.
Can I claim for a broken windscreen? Does it affect NCD?
If you have windscreen cover, you can claim for repair or replacement, usually without affecting NCD. The amount is the windscreen value you chose when buying, so pick enough.
Is someone else driving my car covered? Should I add named drivers or all drivers?
Policies normally cover the owner and named drivers. If someone else has an accident, an extra excess may apply or the claim may be affected. If family members or staff drive regularly, name them or add all-driver cover.
Why is insurance so expensive for young or P-licence drivers?
Statistically young and new drivers have more accidents, so insurers charge more or apply an extra excess. As you gain experience and build NCD, the premium comes down.
My car was stolen. What should I do, and how long until I’m paid?
Make a police report immediately and inform your insurer and agent, with the car grant, keys and policy ready. Insurers usually wait through an investigation period to confirm the car isn’t recovered, so it can take months. If there is a car loan, the bank is paid first.
What should I do first after an accident? Do I have to make a police report, and by when?
Make sure everyone is safe, photograph the scene, both vehicles and plates, and exchange details. In Malaysia, road accidents generally have to be reported to the police within 24 hours, and you should inform your insurer promptly. Don’t admit full liability or sign anything; call your agent first.
What is the difference between own damage, KFK (knock-for-knock) and third party claims?
Own damage is claiming from your own insurer for your car. If the other driver was at fault, an own damage knock-for-knock (KFK) claim lets your insurer pay first and recover from theirs, usually without affecting your NCD. A third party claim is made directly to the other driver’s insurer.
The other driver hit me. Should I claim from my insurer or theirs?
Either. A third party claim against their insurer doesn’t touch your NCD but can be slower and needs proof they were at fault. A KFK claim through your own insurer is usually faster, and your NCD is protected if you weren’t at fault. Lulu can help you decide.
Are towing and roadside assistance included?
Many motor policies include free towing within a set distance and 24-hour roadside help such as tyre changes and jump-starts, depending on the insurer. Save your insurer’s emergency number and call it first, to avoid overcharging by roadside tow trucks.
Do I have to use the insurer’s panel workshop?
For own damage claims you generally need to use an insurer-approved panel workshop, or the claim may be affected. Panel workshops deal with the insurer directly, so you don’t pay for repairs upfront, apart from any excess.
My car loan isn’t settled. Is the bank the beneficiary of my insurance?
Yes. For financed cars, the bank is endorsed on the policy. On total loss or theft, the payout goes to the bank first to settle the loan, and any balance to you. Normal repairs proceed as usual.
What happens if I drive with expired car insurance? When do I lose my NCD?
Driving without valid insurance is an offence with fines or worse, and you have no cover if anything happens. If insurance lapses for a period before you renew, your NCD may be affected or lost depending on the insurer’s rules. Renew immediately.
Can I insure a foreign-registered or reconditioned import car?
Recond cars registered in Malaysia can be insured normally, though some insurers are cautious with agreed value or certain models. Foreign-registered vehicles driven in Malaysia need insurance that meets local law, so check with the insurer.
Can motorcycle insurance and roadtax be renewed together too?
Yes, motorcycles also renew insurance and roadtax together, the same way as cars. Lulu doesn’t handle motorcycle insurance, but she can point you to a suitable channel.
Do I need extra insurance to drive to Singapore or Thailand?
Many Malaysian motor policies cover Singapore and Brunei, but check your policy before you go. For Thailand you generally need Thai insurance, which is checked at the border. Singapore also has its own vehicle entry requirements.
More topics
- Getting started 22
- Medical card 29
- Life, critical illness & accident 19
- MLTA / MRTA 13
- E-hailing insurance 10
- Lorry & commercial vehicles 11
- Fire insurance 23
- Business & employees 14
- Education fund 9
- Wills 15
- Wealth legacy 12
- MM2H & foreigners 9
- Claims 11
- Managing your policies 10
- Common problems 15
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