Today, we will try to find out where to find the cheapest car insurance in Malaysia. Many of us will look for cheap car insurance, when we need to buy insurance for our car. Car insurance in Malaysia is mandatory and comparing car insurance was not necessary last year because insurance price was the same across insurance companies. Finding cheap car insurance was not necessary. 

This has changed for all Malaysians on July 2017 with the start of the Motor Detariffication. We have shared the good news on many of our articles. Now with different prices, it makes sense to compare and shop for cheap car insurance in Malaysia. So, who offers cheap car insurance in Malaysia?

Who has cheap car insurance in Malaysia?

One way to find the right insurance is to look for the cheapest insurance in price? At the moment, there is no webpage that offers on the spot price comparison between insurance companies.

iBanding offers manual comparison to its subscribers for selected insurance companies, so you can ask us to help you for free here. Because we get so many requests, please be patient, when we will provide you the comparison only the next day. We do it manually, so we need time. 😉

What people share about iBanding

We have done several hundreds of comparisons in the past and two companies stand out being most of the time the cheapest insurance for “most Malaysians”. We say most, because it depends on what type of driver you are to find the cheapest. Here are two type of drivers and the cheapest insurance for them.

The Cheapest Insurance For Two Types of Drivers

Driver Type 1: SAFE and SELDOM driver 

The cheapest insurance IF you are a safe driver or only use the car on weekends is AXA FlexiDrive with Telematics. You can find out more about it in our article “AXA FlexiDrive Telematics insurance explained and reviewed”. The big IF is important, because AXA will rate your driving every month and calculate how much cash back you get. At the end of the year you can get up to 20% back on your insurance. This is the highest in Malaysia at the moment.

The good news is that you are fully in control if you get the 20% back or not. This is different from the cash back that Takaful companies provide.

The bad news is that if you are a bad driver, you will not get the full 20% back. If you are moderate safe driver, you still can get some cash back like 10%.

The GREAT news is that you will never pay more. Even if you are the worst driver ever, you do not need to pay more.

A nice benefit is that over-time you will drive automatically safer, because through a mobile app you get feedback on your safe driving skill.

How to get AXA FlexiDrive?

To get AXA FlexiDrive you will need to buy insurance from AXA and then schedule a time to install the device in your car. The installation takes less than 10 minutes and you can ask a technician to come to you to install, instead of going to a workshop.

Driver Type 2: Normal driver, but wants Takaful

Takaful Malaysia has been consistently the cheapest in the past few months. Besides the 10% online discount when you renew online, you can also get Cash Back at the end of the year, when the company performs well. So far it has been 15%. This is based on the principal of “Mudharabah”, where the profit is shared among the people who bought the insurance. Takaful insurance is not limited to Muslims. Anybody can buy a Takaful insurance and join in the principal of taking care of one another.

Besides the advantage of getting Cash Back, Takaful Malaysia also stands out for its complimentary Personal Accident insurance. You and your passengers will automatically receive the free insurance, when you buy from Takaful Malaysia. Takaful Malaysia is possibly the only company that offers it for free.

Summary: Cheapest Car Insurance Malaysia

1. Axa Affin – AXA FlexiDrive car insurance
2. Takaful Malaysia – myMotor car insurance

What is the difference between Cheap and Best Car Insurance?

In this article, we only looked at who is offering cheap insurance. We looked at who is offering insurance prices like AirAsia for flights. They will not always be the cheapest, but often times they are. You still want to compare.

But cheap insurance is not necessary the Best insurance. When we talk about who is the Best Car Insurance and Takaful company, we look also at customers service, claims service and many other factors. To find who is the Best, check out our Motor Insurance and Takaful Award for 2017/2018.

Want to compare insurance? 

If you want to buy car insurance online and want to compare insurances for yourself, check out our Ultimate Guide to Online Car Insurance. We list all the insurance company with direct links that offer car insurance online. You can use it as a starting point to compare.

Questions? 

Hope you liked our review on cheapest car insurance in Malaysia. Leave us a comment below or ask us a question and we do our best to answer you.

With these rankings as a guide, we hope the consumers are able to make more informed decision when choosing the company to insure their cars.

And to those who intend to purchase theirs from Syarikat Takaful Malaysia, the number one motor takaful company as voted by the Malaysian consumer for two consecutive years, we hope that this article will help guide you through the process.

Let’s start

The car takaful plan from Syarikat Takaful Malaysia can be purchased online from their online portal called Click for Cover or here.

It is a well streamlined and easy to use web portal and we assure you that anyone can do it within a few minutes. However, to ensure accuracy of information, it is advised that you have your vehicle registration card or renewal notice from your previous insurance / takaful company ready.

The first thing you need to do is key in a few information such as your NRIC number, car registration number (plate number), postcode and email address.

Step 1 – Get Quotation

If there’s a tricky part about the purchasing process, this could be it. But if you have a good knowledge about your car, or if you have your card with you, this step shouldn’t be an issue.

Information required here is largely vehicle and model-specific, such as variant, import type (local assembly, complete knocked down etc), type of anti-theft device fitted. You are also required to disclose what type of parking you have at your residence, if the car is still under bank loan and how many permitted drivers will be driving the car.

Once you’ve entered all the info, you should be able to see the preliminary price for your car takaful on your right.

Rebate 10%

This is the discount that you get for buying (or renewing) your insurance (or takaful in this case) online. This discount is not specific to Syarikat Takaful Malaysia. You should be getting this discount when buying directly from any insurance and takaful companies ONLINE.

Cash Back

It says: You may be entitled to an estimated Cash Back subject to financial performance, applicable tax deductions and no claims incurred during the coverage period.

According to Syarikat Takaful Malaysia, they are the only takaful operator to consistently offer this cash back as a reward for their clients who have not made any make within the coverage period. For more explanation about cash back, read here.

Personal Accident Coverage

As a Takaful Malaysia’s customer, you are entitled to a RM15,000 Personal Accident coverage for each passenger and driver. This comes at no additional charge to you.

Step 2 – Add Additional Coverage

Here you can add additional coverage that you would like to have. One of these is mandatory for you to add and that is the Named Drivers. Here you need to key in the number of drivers allowed to drive your car and be covered by your insurance policy. The first two drivers are free. You will not be able to leave this page as long as you have not put in a number.

Other additional coverage that you may choose are:

• Cover for Windscreens, Windows and Sunroof (highly recommended!)
• Legal Liability to Passengers
• Legal Liability of Passengers
• Strike, Riot & Civil Commotion
• Inclusion of Special Perils
• Compensation for Assessed Repair Time (CART)
• Extension of Cover to Thailand

All these come with a brief and helpful description. Once you add them to your policy, you will notice the quoted price to the right changes.

Step 3 – Certificate Owner Info

Easy step of keying in your personal and contact information.

 

Step 4 – Driver Info

Another easy step. Here you need to fill in the name, NRIC number, gender and relationship of the ‘named drivers’. The number of drivers that you will need to fill is according to the number chosen by you in step 2. If you only chose 1 driver, then there isn’t much for you to do here. Simply continue.

Step 5 – Confirm & Pay

Time to check that everything is alright and make payment.

Please note here that it says:

You will have to bear a compulsory excess of RM400 in the event of claim if your vehicle is driven by a person who is not named in your certificate or if the driver holds a Learner (L) driver’s licence. The excess is the first amount that you have to bear in respect of each and every claim.

So make sure that if your car is often driven by others, such as a spouse, a sibling, friend or child, they are nominated as named drivers in step 2. As mentioned, the first 2 (this includes you) are free. The rest are chargeable at RM10 per person.

Once you are happy with the coverage, you can make payment via credit card or bank transfer. The transaction is swift and secured. Voila. You have yourself a takaful cover for your car, at a 10% direct discount, and 15% cash back if you don’t make a claim within the next 12 months.

What are the benefits that you will be getting with the car takaful policy you just purchased you may asked? Well, let’s look at them here.

1. Comprehensive coverage – this means that in case of an accident, not only your plan will cover for the damage and injury of the third party (if the accident is caused by you), but also the damages suffered by your own car. For more information about the different types of car insurance policies, click here.

2. 24/7 roadside assistance program – the round-the-clock emergency car assistance Tele Bantuan Program offers:
– Minor roadside repair: jump start services, change of battery or tires, emergency delivery of petrol and/or minor wiring work with free labour costs up to 2 hours
– Towing service: free towing service up to 50km per incident from breakdown scene to the nearest Takaful Malaysia’s panel workshop and maximum of RM200 to the nearest Takaful Malaysia’s panel workshop in case of accident

3. Cash back reward no claims – You car insurance will be cheaper with extra cash back if you do not file a claim and the company is doing well.

4. Complimentary Personal Accident coverage – for both you and your passengers up to RM15,000 per person.

Sounds good! Ready to purchase? Click here.

What is roadside assistance?

Roadside assistance is a form of protection when your car breaks down while on the road. Typically professional assistance is just a phone call away. It’s like your safety net when your car fails on you and you have no clue what to do.

In Malaysia, you can pretty much get roadside assistance cover when you buy a car insurance with a basic cover. The roadside assistance cover makes up to a more comprehensive coverage.

While that may be the case, some insurance companies offer roadside assistance cover on its own too. Which means if your car doesn’t have a roadside assistance cover yet, you can purchase it as an add-on.

Roadside assistance usually includes a number of services. Although the kind of services will vary between providers, here are some of the most common inclusions in roadside assistance products.

 

1. 24-hour emergency towing assistance

This service can be incredibly handy when your car breaks down and it’s not possible to repair it on the spot. The service provider will usually assist you to tow it to your preferred location.

Although towing location can be entirely your choice, there may be charges if the towing exceeds a specified mileage limit set by the insurance company.

 

2. Minor roadside repairs

Once upon a time, we could perform a fair amount of DIY repairs on our vehicles when we faced with a vehicle breakdown. It was probably way easier back in the day because cars weren’t so complicated then.

But with today’s complex, more intricate engine systems and mechanical build up, it’s probably wise to get a professional to have a look at the problem.

Roadside technicians are likely to assess your vehicle on the spot to see what needs to be fixed and if it can be fixed right away. But usually, they would have already done a brief assessment of your breakdown via phone when you call in for help. So before they get to the breakdown site they would’ve already had an idea of what to do.

The one thing that you will need to keep in mind is that they will only cover the labor cost. If there are additional spare parts required, you may need to pay for the cost of the spare parts.

Here are some common minor roadside repairs and assistance:

• Fuel delivery
• Battery replacement
• Jump-start your vehicle
• Fuses replacement
• Fit new drive belt
• Repair hose damaged fittings
• Other basic fixes

However, if the problem is a lot more serious, they’ll arrange for a tow.

 

3. Flat tire, help!

A flat tire can be such a nuisance when you are on your way to an important appointment. All dressed up and getting grease on your clothes is just not how you want your day to go.

The safety aspects of fixing a flat tire by the roadside with fast cars driving by could also hinder you from fixing your flat tire. So changing flat tires is always a common type of service offered under the roadside assistance program.

4. Other services

The service listed above are the most commonly included in a roadside assistance service. But some insurance companies include additional services that can cater to situations you may not have even thought of until you really face some serious car trouble on the road.

Alternative travel assistance – In case you get stranded somewhere because of a car breakdown or an accident, roadside assistance can help to arrange for a taxi, make hotel reservations or rent a car.

When you need to bring your car back to Malaysia – Some insurance companies offer services to tow your car back to Malaysia in case you have car trouble outside of Malaysia. Typically, roadside assistance is extended to provide towing services in neighboring countries such as Singapore, Thailand, and Brunei.

Ambulance – When you’ve just had an accident and are injured, roadside assistance can also help to arrange for an ambulance pick-up to bring you to the nearest hospital.

Notify family members – They can help to relay messages to your friends and family that you’ve just met with an accident.

Family and friends roadside assistance – Some insurance companies extend their roadside assistance cover to your family and friends’ vehicles. The only condition is that you must be in their vehicle too.

Keynotes to look out for in a roadside assistance

• Is this roadside assistance available 24/7?
• How can I get hold of roadside assistance when I get into car trouble?
• Is there a limit to the number of call-outs for assistance?
• Is technical advice included in the roadside assistance hotline?
• What are the geographical limits to my roadside assistance? Does it include assistance when I go off-road?
• Are there any financial limits for the different services or benefits offered?

Roadside assistance may vary between each insurance companies. Ultimately each one will have terms and conditions that are not the same.

So it’s always wise to read up your policies to fully understand what you are covered for to avoid surprises when you really do have car trouble.

Companies that offer better Roadside Assistance

There are only a few companies that offer a more comprehensive roadside assistance service as an add-on to their motor insurance policy. Allianz for instance, offers a product called “Enhanced Road Warrior” that you can buy in addition to your normal motor insurance cover.

It’s definitely worth to have and shop around for

If you’ve got your car insurance and road tax covered before your next renewal due date, that’s good. But did you check if you already have a roadside assistance? And if you have do you know what exactly is included in your roadside assistance cover?

Roadside assistance services may be seemingly small to you but when you have to fork out your money unexpectedly while on the road, shaken by an accident or simply stranded somewhere with no clue on how to fix your vehicle, roadside assistance will be your rescue on that day.  

Not having roadside assistance is like taking a chance at your money. And if you already have one, get to know your roadside assistance services.

Buying insurance DIRECT from the insurance or Takaful branch

Buying insurance ONLINE DIRECT from the insurance/takaful branch

Buying from full-time insurance/takaful agents

In our yearly survey to find the best motor insurance company in Malaysia, we found that Malaysians largely buy their insurance from an agent. In 2016, 34% of our survey respondents bought through an agent. You can read more about the award here. So we are curious to see how good the insurance agents are compared to the other channels.

Even though speed and convenience are bad when buying directly online from insurance and takaful branch, the claims support that each channel offer is quite neutral. On top of that the price that both channel offer is good.

At least you’ll know that you’ve paid a good price for a reasonable support and service after you have secured yourself a car insurance. The long-term value is what’s important.

Meanwhile, buying from a full-time insurance/takaful agent will guarantee you a good after-sales service. You’ve already done thorough research on the insurance product you want but knowing that your insurance agent has a good background, personality and positive attributes is an assurance that they will always have your back even after years of renewing your car insurance with him/her.

Explore other options in our 2017 Buying Guide for Motor Insurance/ Takaful and Road Tax in Malaysia.

Buying from full-time insurance/takaful agents

In our yearly survey to find the best motor insurance company in Malaysia, we found that Malaysians largely buy their insurance from an agent. In 2016, 34% of our survey respondents bought through an agent. You can read more about the award here. So we are curious to see how good the insurance agents are compared to the other channels.

Buying from a full-time insurance/Takaful agent is a good way to get started. When you have zero knowledge about car insurance, they are the best people to advise and perhaps even educate you about car insurance and help you out when you need to make a claim.

They are equipped with product training and will know how to explain the technical terms and coverage in a simplified manner to you. And the best thing is that they can usually come to where you are anytime you like and even remind you of your insurance renewal way in advance.

Explore other options in our 2017 Buying Guide for Motor Insurance/ Takaful and Road Tax in Malaysia.

Malaysia usually experiences two monsoon seasons in a year. The Southwest Monsoon season usually happens from May to September and the Northeast Monsoon season starts from November up to March the following year. This means every year you can expect heavy downpours and for anyone living in low-lying areas the possibility of flash floods happening every year is definitely high.

Recently reported flood-prone areas according to infobanjir.

Perlis – Berseri

Kelantan – Pasir Mas, Tumpat, Tanah Merah, Pasir Puteh, Kuala Krai

Kedah – Padang Terap

Terengganu: Marang, Setiu

Pulau Pinang – Timur Laut, Seberang Perai Tengah

Pahang – Raub, Kuantan

The severity of damages to a car that has been caused by floods can vary. The worst damage can cost a car owner up to RM 50,000 to repair. Cars that are fully submerged while engines are still dead will not have major damages where the cost to repair won’t be as high.  

But if a car is fully submerged and car owner attempts to start the engine, the electric control unit (ECU) will be shorted out.For an average car, this repair work can cost up to RM 7,000 and a whopping RM 30,000 for a BMW!

Source: The Star 

You might assume that in a tropical country like Malaysia, with frequent flash floods every year, your policy includes automatic coverage for damages to your car due to flood. Perhaps it’s time to check your policy again.

Even though you may own a Comprehensive cover, it does not necessarily include coverage against flood! Flood coverage is usually offered by insurance companies as an add-on option. The cover falls under special perils such as flood, earthquakes, storms, typhoons, landslides, and volcanic eruptions.

This, of course, requires an additional premium of 0.5% from the total sum insured of your vehicle. That may sound like a lot to top-up in addition to your car insurance premium, but it’s always best to re-evaluate your need for a flood cover.

Here is an estimate of how much you may need to add-on.

Sum Insured: RM 30,000

Base Premium : RM 1,059.50

No Claim Discount (55%): RM 582.73

Base Premium: RM 476.77

Flood Cover (0.5% from sum insured): RM 150.00

Subtotal: RM 626.77

Subtotal after rebate (10%): RM 564.09

Total premium you need to pay after GST and Stamp Duty:  RM 607.94

While it makes a lot of sense for someone who lives in flood-prone areas to take up flood cover, it may also make sense for someone who drives frequently in flood-prone areas to consider getting the flood coverage.

While flood could be important to you, there are other additional covers you may want to consider. Read more on additional coverage for your car here.

Usually, car owners are tempted to opt for the cheaper premium and more often than not they tend to miss some important coverage that they should seriously be considering given the risk factors that they are exposed to.

In other instances, car owners tend to assume that their cars are covered for damages due to other causes when it’s not. Check out 7 other instances that your car insurance does not cover.