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Malaysia - Car Tax and Insurance

Road tax and car insurance are compulsory in Malaysia. Driving without them will result in severe penalties.

Car tax is purchased from the Road Transport department. If you have purchased a new car with a loan then the car tax disc, which should be displayed on the windscreen, will be automatically sent to you every six months. This cost is factored into your loan repayments. If you did not take out a loan then you will need to apply for a car tax disc and with your blue registration card that you will have received.

Using this form, you can enter your car details and the tool will calculate how much road tax is due on your vehicle:

Use this link to find out how to order your car tax:

You will have to register at this site to be able to access the relevant tools. Road tax can be purchased online. The amount of tax which is due is dependent on the car’s engine size, fuel type and whether the car is for commercial use or private and personal use.

Car Insurance

There are three main types of insurance available for motor insurance requirements in Malaysia. Everybody must have at least third party insurance. This is the lowest level of cover available which fulfills legal requirements to be able to drive a car on public roads.

The most basic cover for legal purposes is known as Act Only insurance and covers only death or injury in the event of an accident.

The next level is Third Party Insurance which covers accident to third party vehicles and some minor injuries. Third party and fire and theft can be added to these policies.

The highest level of insurance is fully comprehensive insurance and this covers all fire and theft, accidental damage regardless of liability and often has clauses such as legal cover.

You can shop around for the best insurance deal and all cars on public roads must be insured. It is a criminal offence to drive without insurance.

If you need to make a claim on your car insurance, you need to first file a report if there has been a road traffic accident. The police should be called to make a report on the accident. This is necessary to progress an insurance claim. On making a claim the following information will be required:

- Clear copies of your driving license
- Copy of proof of identification
- Police report
- Road tax disc.

Failure to submit the above documents will result in your claim being dismissed.

It is also prudent to point out that at any time your car is driven without a current road tax disc or a roadworthy inspection certification, this will render your car insurance null and void and you will be committing more than one road traffic offence.

The above link details information on car insurance calculations and other useful information when it comes to insuring your car.

Car insurance is widely available and there are many insurance companies who offer competitive rates. It is vital you ensure that your car has sufficient insurance and is legally allowed on public roads.

A list of insurance companies in Malaysia:

This website offers a range of information on car insurance and has feeds into major car insurance providers in Malaysia.

HSBC bank offers car road tax purchasing tools and car insurance quotations tools. You can purchase online and have everything done in a matter of seconds.

Allianz is a well-known insurance provider in Malaysia and offers a range of insurances for your car.

There are features to car insurance policies such as No Claims Discounts (NCD) which cumulate on an annual basis and reduce your annual premium cost each year you don’t make a claim. Protecting your NCD is also an option as benefits such as allowing one claim a year are on offer. Features such as these are charged at an extra fee on top of your car insurance premium.

Car insurance can be paid for in a lump sum or on a monthly automated basis via direct debit or taken from a credit card each month. There is usually a credit charge for paying monthly, as in effect, it is a finance agreement. It does help to spread the cost, but over a year it will cost you more.

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