Comprehensive guide to car insurance in Malaysia covering types, costs, NCD rates, claim process, and best insurance companies. Learn everything from compulsory to comprehensive coverage.
All Honda cars in Malaysia require at minimum Third-Party insurance as mandated by law, but comprehensive coverage is highly recommended and mandatory if you have a bank loan. Comprehensive insurance costs RM3,000-6,000 per year depending on your Honda model (City: RM3,000-3,800, HR-V: RM3,600-4,600, Civic: RM4,300-5,400, CR-V: RM5,100-6,000).
Third-Party Only (TPO) is the legal minimum coverage, protecting third-party liabilities only
Comprehensive insurance covers your own vehicle damage plus third-party liabilities
Banks require comprehensive insurance for all financed vehicles
NCD (No Claim Discount) can reduce premiums by up to 55% after 5 claim-free years
Additional coverage like windscreen and flood protection are recommended in Malaysia
â Yes, car insurance is mandatory in Malaysia under the Road Transport Act 1987. All vehicles must have at minimum Third-Party insurance coverage before they can be legally driven on Malaysian roads.
The Road Transport Act 1987 requires all motor vehicles to be insured
You cannot renew your road tax without valid insurance coverage
Driving without insurance can result in fines up to RM1,000 or imprisonment up to 3 months
Insurance coverage must be active before taking delivery of your new car
Related Questions:
Car insurance is not just a legal requirement in Malaysiaâit's your financial protection against unexpected events on the road. Whether you're buying a new Honda City, HR-V, or any vehicle, understanding car insurance is crucial before you drive off the dealership.
Many first-time car buyers in Malaysia get confused by insurance terminology: What's the difference between comprehensive and third-party? Why do insurance quotes vary so much? How does NCD work? This comprehensive guide answers all these questions and more.
In this guide, we'll cover everything from mandatory insurance requirements to choosing the best insurance company, understanding No Claim Discount (NCD), and navigating the claims process. Whether you're buying your first car or renewing your policy, this guide will help you make informed decisions about your car insurance in Malaysia.
â Malaysia has three main types of car insurance: Third-Party Only (TPO) which covers only third-party damages, Third-Party Fire and Theft (TPFT) which adds fire and theft coverage, and Comprehensive which covers everything including your own vehicle damage.
Third-Party Only (TPO): Covers damages/injuries you cause to others only, not your own car
Third-Party Fire and Theft (TPFT): Adds coverage for fire damage and theft of your vehicle
Comprehensive: Full coverage including your own vehicle damage, third-party, fire, and theft
Banks require comprehensive insurance for all financed vehicles
Related Questions:
Malaysia offers three main types of motor insurance, each providing different levels of coverage. Understanding these types is crucial for choosing the right protection for your vehicle and financial situation.
The three types range from basic third-party coverage (the legal minimum) to comprehensive coverage that protects your own vehicle as well. Your choice depends on factors like your car's value, age, whether you have a loan, and your budget.
Let's break down each type in detail to help you understand what's covered, what's not, and which one is right for your Honda vehicle.
â Third-Party Only insurance covers your legal liability for death or injury to third parties (unlimited) and damage to third-party property (up to RM5,000). It does NOT cover any damage to your own vehicle.
Unlimited coverage for third-party death or bodily injury
Up to RM5,000 for third-party property damage
Legal liability coverage as required by Malaysian law
Does not cover your own vehicle damage, theft, or fire
Not accepted by banks for car loan applications
Third-Party Only insurance is the most basic and affordable type of car insurance in Malaysia. It's the legal minimum coverage required by law, but it only protects you against claims from other peopleânot your own vehicle.
TPO coverage includes liability for death or bodily injury to third parties (unlimited coverage) and property damage to third-party vehicles (up to RM5,000 per accident as per Bank Negara Malaysia guidelines).
This insurance does NOT cover any damage to your own vehicle, whether from accidents, theft, fire, or natural disasters. If you crash your car, you pay for your own repairs out of pocket.
TPO is suitable for very old vehicles (10+ years) with low market value where the insurance premium might cost more than the car's worth. However, for newer Honda models, TPO is not recommended and banks will not accept it for financed vehicles.
â TPFT insurance includes all TPO coverage plus protection against fire damage and vehicle theft. However, it still doesn't cover collision damage to your own vehicle, which is the main difference from comprehensive insurance.
TPFT = TPO + Fire damage + Theft coverage
Covers vehicle loss due to theft (based on market value)
Covers fire damage including electrical fires
Still doesn't cover accident damage to your vehicle
Costs approximately 20-30% less than comprehensive
Third-Party Fire and Theft insurance is a middle-ground option that adds fire damage and theft protection to basic third-party coverage. It costs more than TPO but less than comprehensive insurance.
TPFT covers everything that TPO does, plus damage to your vehicle caused by fire (including electrical fires and explosions) and loss of your vehicle due to theft. This is particularly relevant in Malaysia where car theft rates have been a concern.
However, TPFT still doesn't cover accident damage to your own vehicle. If you're involved in a collision and your car is damaged, you still pay for repairs yourself even if the accident wasn't your fault.
TPFT can be suitable for older vehicles (5-10 years) where the value has depreciated significantly but you still want protection against fire and theft. For financed vehicles, most banks still require comprehensive coverage, not TPFT.
â Yes, comprehensive insurance is worth it for most Malaysian car owners. It typically costs RM1,500-4,000 per year but covers repairs that could cost RM10,000-50,000. It's mandatory for financed vehicles and qualifies for NCD discounts.
Covers all damage to your own vehicle regardless of fault
Mandatory requirement for all bank-financed vehicles
Qualifies for NCD discount up to 55% after 5 years
Average premium: RM1,500-4,000/year depending on vehicle
One accident repair can cost RM10,000-50,000 without insurance
Comprehensive insurance is the most complete coverage available in Malaysia and the standard choice for most car owners, especially those with financed vehicles. It covers virtually everything: your own vehicle damage, third-party liabilities, fire, and theft.
Comprehensive coverage includes all benefits of TPFT plus damage to your own vehicle from accidents (regardless of who is at fault), vandalism, natural disasters, and more. It provides peace of mind knowing that most scenarios are covered.
While comprehensive insurance costs more upfront, it's actually the most economical choice for vehicles worth more than RM30,000. Consider this: One accident could cost RM10,000-20,000 in repairs, while comprehensive insurance typically costs RM1,500-4,000 per year.
For financed vehicles, comprehensive insurance is MANDATORY. Banks list themselves as the insurance beneficiary until your loan is fully paid. Additionally, comprehensive insurance qualifies for NCD (No Claim Discount), which can reduce your premium by up to 55% over time.
Contact Safwan Din for comprehensive insurance guidance and exclusive Honda + Insurance packages with competitive rates.
Get Insurance Quoteâ Honda car insurance in Malaysia costs approximately RM3,000-6,000 per year for comprehensive coverage depending on the model, with Honda City at RM3,000-3,800, HR-V at RM3,600-4,600, Civic at RM4,300-5,400, and CR-V at RM5,100-6,000 annually before NCD discount.
Honda City/City Hatchback: RM3,000-3,800/year (0% NCD), RM1,350-1,710 with 55% NCD
Honda WR-V: RM3,100-3,700/year (0% NCD), RM1,395-1,665 with 55% NCD
Honda HR-V: RM3,600-4,600/year (0% NCD), RM1,620-2,070 with 55% NCD
Honda Civic: RM4,300-5,400/year (0% NCD), RM1,935-2,430 with 55% NCD
Honda CR-V: RM5,100-6,000/year (0% NCD), RM2,295-2,700 with 55% NCD
NCD can reduce premiums by up to 55% after 5 claim-free years
Related Questions:
Insurance costs in Malaysia vary significantly based on your vehicle type, value, engine capacity, coverage type, and your No Claim Discount (NCD) entitlement. Understanding these costs helps you budget appropriately when buying a car.
For Honda models specifically, insurance premiums are generally competitive due to Honda's reputation for reliability and reasonable repair costs. The pricing ranges below reflect actual comprehensive insurance costs from major Malaysian insurance providers.
The following table shows annual comprehensive insurance premiums for all current Honda models in Malaysia. These are actual market rates for 0% NCD (first year or after making a claim). Costs may vary slightly between insurance companies and based on your location.
Remember that with NCD, your costs will be significantly lower. With maximum 55% NCD after 5 claim-free years, you'll pay less than half of the amounts shown. For example, a Honda City that costs RM3,000-3,800 at 0% NCD will only cost RM1,350-1,710 with 55% NCD.
| Honda Model | Variant Range | Comprehensive (0% NCD) | With 55% NCD |
|---|---|---|---|
| Honda City | 1.5L S to RS e:HEV | RM3,000-3,800 | RM1,350-1,710 |
| Honda City Hatchback | 1.5L S to RS e:HEV | RM3,000-3,800 | RM1,350-1,710 |
| Honda WR-V | 1.5S to 1.5RS | RM3,100-3,700 | RM1,395-1,665 |
| Honda HR-V | 1.5S to 1.5RS | RM3,600-4,600 | RM1,620-2,070 |
| Honda Civic | 1.5L E to 2.0 RS e:Hev | RM4,300-5,400 | RM1,935-2,430 |
| Honda CR-V | 1.5T S 2WD to 2.0 RS e:Hev | RM5,100-6,000 | RM2,295-2,700 |
â NCD (No Claim Discount) in Malaysia gives you premium discounts for claim-free years, starting at 25% after 1 year up to maximum 55% after 5 years. The NCD follows you and can be transferred between vehicles.
NCD rates: 25% (1 year), 30% (2 years), 38.33% (3 years), 45% (4 years), 55% (5+ years)
NCD is transferable when you change vehicles
Making a claim resets your NCD to 0%
NCD relief protection available as an add-on to protect your discount
Saves thousands of ringgit over your driving lifetime
Related Questions:
No Claim Discount (NCD) is one of the most valuable benefits of car insurance in Malaysia. It's a reward system that reduces your insurance premium for every year you don't make a claim, encouraging safe driving.
NCD rates in Malaysia are standardized by Bank Negara Malaysia and apply uniformly across all insurance companies. The discount starts at 25% after your first claim-free year and increases progressively up to a maximum of 55% after five years.
The beauty of NCD is that it follows you, not your car. If you sell your current vehicle and buy a new one, you can transfer your accumulated NCD to the new vehicle. This makes NCD a valuable asset that can save you thousands of ringgit over your driving lifetime.
For example, if your Honda City insurance normally costs RM2,000 per year, with maximum 55% NCD, you'll only pay RM900 per yearâsaving RM1,100 annually. Over 10 years, that's RM11,000 in savings just for being a claim-free driver!
| Claim-Free Years | NCD Rate | Example: RM2,000 Premium |
|---|---|---|
| 0 years (New) | 0% | RM2,000 |
| 1 year | 25% | RM1,500 |
| 2 years | 30% | RM1,400 |
| 3 years | 38.33% | RM1,233 |
| 4 years | 45% | RM1,100 |
| 5+ years | 55% | RM900 |
â Yes, you can transfer your NCD in Malaysia when changing vehicles, as long as the transfer happens within 12 months of selling your previous car and both vehicles are in the same category (private to private).
NCD transfer must be done within 12 months of disposing previous vehicle
Transfer only works between same vehicle categories (private to private)
Owner name must match for NCD transfer
Provide previous insurance certificate to new insurer for verification
NCD Relief Protection available to protect discount even after making claims
Your NCD is valuableâso valuable that many drivers choose to pay for small repairs out of pocket rather than make a claim that would reset their NCD to 0%. However, there's a better solution: NCD Relief Protection.
NCD Relief Protection is an optional add-on (typically costing RM50-100 per year) that protects your NCD even if you make one claim during your policy year. This means you can make a claim for accident repairs without losing your hard-earned discount.
Regarding NCD transfer: When you buy a new car, you must transfer your NCD within 12 months of selling your old vehicle. The process is simpleâjust provide your old insurance policy details to your new insurer, and they'll verify and apply your NCD entitlement.
Important note: NCD can be transferred between private cars, but NOT between different vehicle categories (e.g., from private car to commercial vehicle or motorcycle). The NCD must also be under the same owner's name.
â Essential add-ons for Malaysia include windscreen coverage (RM100-200/year) for stone chip protection, flood/special perils coverage (RM150-300/year) for monsoon protection, and legal liability to passengers (RM50-100/year) for passenger injury coverage.
Windscreen coverage: Essential due to common stone chips on Malaysian highways
Flood coverage: Critical for monsoon season and flash flood protection
Legal liability to passengers: Covers passenger injury claims
All-driver coverage: Allows anyone to drive your car
Total costs: RM300-600/year for comprehensive protection
While comprehensive insurance covers most scenarios, Malaysian drivers should seriously consider several add-on coverages due to our unique climate, road conditions, and driving environment.
These add-ons typically cost between RM50-300 per year each, but can save you thousands in specific situations. Think of them as affordable insurance for your insuranceâprotecting you from scenarios that standard policies don't fully cover.
The most important add-ons for Malaysia are windscreen coverage (stone chips are extremely common), flood coverage (monsoon seasons), and legal liability to passengers (for safety and legal protection).
Windscreen coverage is arguably the most useful add-on for Malaysian drivers. Stone chips and cracks from highway debris are incredibly common, and replacing a windscreen can cost RM800-2,500 depending on your vehicle model.
Standard comprehensive insurance includes windscreen replacement, but with a catch: claiming it affects your NCD. Windscreen coverage add-on (typically RM100-200 per year) allows you to repair or replace your windscreen without affecting your NCD.
For Honda models, windscreen replacement costs vary significantly: Honda City/WR-V (RM800-1,200), Honda HR-V (RM1,200-1,800), Honda Civic (RM1,500-2,000), and Honda CR-V (RM1,800-2,500). A single windscreen claim pays for 5-10 years of the add-on coverage!
Tip: The add-on typically covers repairs multiple times but replacement only once per year. Small chips should be repaired immediately (free with the add-on) before they spread into cracks requiring full replacement.
â Standard comprehensive insurance does NOT automatically cover flood damage in Malaysia. You must purchase Special Perils or flood coverage add-on (typically RM150-300/year) to be protected against flood, storm, and natural disaster damage.
Flood coverage is an optional add-on, not included in standard comprehensive
Costs approximately RM150-300 per year (0.5% of sum insured)
Covers damage from floods, storms, landslides, natural disasters
Essential for basement parking or flood-prone areas
Can save you RM20,000-50,000 in flood damage repairs
Malaysia's monsoon seasons and flash floods make flood coverage essential, especially if you live or work in flood-prone areas. Standard comprehensive insurance does NOT automatically include flood coverageâit's an optional add-on.
Flood damage to vehicles can be catastrophic, with repair costs easily reaching RM20,000-50,000 for water damage to engines and electrical systems. In worst cases, flooded cars are written off as total losses.
Special Perils coverage (which includes flood) typically costs RM150-300 per year (approximately 0.5% of vehicle sum insured). It covers damage from floods, storms, landslides, earthquakes, and other natural disasters.
This add-on is particularly crucial if you park in basement parking (common in KL condos), live in areas like Shah Alam or Segambut (known flood zones), or frequently drive through areas prone to flash floods during rainy season.
Important: Flood coverage typically doesn't cover you if you intentionally drove into visibly flooded water. It covers unexpected flash floods, but not reckless decisions to ford through high water.
Two similar-sounding but different add-ons deal with passenger liability: Legal Liability to Passengers and Legal Liability of Passengers. Both are inexpensive (RM50-150/year combined) and provide important protection.
Legal Liability TO Passengers covers your liability if passengers in your car are injured in an accident and decide to sue you for compensation. This is more common than you might think, especially in serious accidents with permanent injuries.
Legal Liability OF Passengers covers your liability for actions of your passengers that cause harm to othersâfor example, if your passenger throws something out the window that causes an accident, or opens a door causing injury to a motorcyclist.
These add-ons are extremely affordable (often under RM100/year combined) and provide peace of mind when carrying family, friends, or colleagues. They're particularly important if you frequently have passengers or do ride-sharing.
â Top car insurance companies in Malaysia include Allianz (highest claim settlement ratio), Zurich Insurance (excellent customer service), AIG Malaysia (comprehensive coverage options), and Etiqa Insurance (competitive premiums). Choice depends on your priorities like price vs service quality.
Allianz Malaysia: Highest claim settlement ratio, extensive workshop network
Zurich Insurance: Premium service, 24/7 roadside assistance
AIG Malaysia: Comprehensive coverage options, good for luxury vehicles
Etiqa Insurance: Competitive premiums, suitable for budget-conscious buyers
Compare at least 3 quotes before deciding
Malaysia has over 20 licensed motor insurance companies, but they're not all equal. The best insurance company for you depends on factors like premium pricing, claim settlement reputation, customer service, authorized workshop networks, and additional benefits.
When choosing an insurance provider, don't just look at the premium price. A company offering RM200 cheaper premium but with poor claim settlement record or limited workshop options will cost you more in hassle and time when you actually need to make a claim.
The following are consistently rated as top insurance providers in Malaysia based on claim settlement ratios, customer satisfaction surveys, and industry reputation. All are established companies with strong financial backing.
â All banks in Malaysia require comprehensive insurance for car loans. Third-party or TPFT insurance is not acceptable for financed vehicles. The bank is listed as insurance beneficiary until the loan is fully paid.
Comprehensive insurance is mandatory for all financed vehicles
Bank is named as insurance beneficiary alongside owner
Insurance sum insured must cover outstanding loan amount
Cannot downgrade to TPFT or TPO until loan is fully settled
Zero downpayment loans may require additional coverage
Related Questions:
If you're financing your Honda through a bank loan, understanding insurance requirements is crucial. Banks have specific insurance requirements to protect their interests since they technically own the vehicle until you fully repay the loan.
ALL banks in Malaysia require comprehensive insurance for financed vehicles. Third-party or TPFT insurance is not acceptable. The bank is listed as the insurance beneficiary (along with you), meaning any total loss payout goes to the bank first to settle the outstanding loan.
The insurance sum insured must match or exceed the vehicle's market value. As your car depreciates, the sum insured is adjusted yearly, but it must always be sufficient to cover the outstanding loan amount.
Additionally, if you choose zero downpayment financing, some banks may require additional insurance add-ons or higher coverage limits to mitigate their increased risk exposure.
Important: You cannot change to lower coverage (like TPFT) until your loan is fully settled. Attempting to do so without bank permission can trigger loan default clauses.
â To claim car insurance in Malaysia: (1) Take photos of all damage, (2) Lodge police report within 24 hours, (3) Notify your insurance company immediately, (4) Complete claim form, (5) Send vehicle to approved workshop, (6) Submit all documents. Claims typically settle in 3-14 days.
Step 1: Take photos of damage from multiple angles before moving vehicle
Step 2: Make police report at nearest station within 24 hours
Step 3: Call insurance company hotline to report claim immediately
Step 4: Fill out and submit claim form with all required documents
Step 5: Send vehicle to insurance company's approved panel workshop
Step 6: Await approval and repair completion (typically 3-14 days)
Related Questions:
Making an insurance claim can seem daunting, especially if it's your first time. However, the process in Malaysia is straightforward if you follow the proper steps and provide all required documentation.
The key to smooth claim processing is acting quickly and documenting everything. Take photos, get witness information, and notify your insurer promptly. Most insurance companies require claim notification within 24 hours of an accident.
Here's the complete step-by-step process for making a car insurance claim in Malaysia:
**Step 1: Secure the Scene and Document Everything** Immediately after an accident, ensure everyone's safety first. Then take photos of all vehicle damage, the accident scene, road conditions, and surrounding area. Get contact information from other parties and witnesses. This documentation is crucial for claim processing.
**Step 2: Lodge Police Report Within 24 Hours** By law, you must make a police report for any accident involving injury, death, or damage exceeding RM3,000. For practical purposes, always make a report regardless of damage severityâinsurance companies require it. The police report can be made at any police station within 24 hours.
**Step 3: Notify Your Insurance Company Immediately** Call your insurance company's 24-hour hotline to report the accident. Provide details of the incident and your policy number. Most companies require notification within 24 hours. They'll guide you on next steps and assign a claim number.
**Step 4: Complete and Submit Claim Form** Obtain the claim form from your insurer (usually available online or at their office). Fill it out completely and accurately. Required documents typically include: your IC copy, driving license copy, vehicle registration card (VOC), police report, photos, and repair quotation.
**Step 5: Vehicle Inspection and Workshop Assignment** Your insurance company will inspect the damage (either at your location or their office). They'll then assign an approved panel workshop for repairs. You can sometimes choose from their panel list. Don't start repairs before approval or you may not be reimbursed.
**Step 6: Repair and Collection** Once approved, the workshop begins repairs. Most insurance companies settle directly with the workshop, so you don't pay upfront. However, you'll need to pay your excess amount (typically RM300-500) and any betterment charges. Repair time varies from 3 days (minor) to 2 weeks (major damage).
**About Betterment Charges** Betterment charges are costs you must pay when replacing old damaged parts with new ones. For example, if your 3-year-old bumper is damaged, insurance covers depreciated value, but you pay the "betterment" portion for getting a new bumper. Betterment typically ranges from 10-40% depending on part age.
**Workshop Selection Matters** While you're required to use approved panel workshops, you often have choices. For Honda vehicles, try to select authorized Honda service centers or well-established panel workshops with Honda experience. Quality of repairs varies significantly between workshops.
**Claim Settlement Timeline** Simple cases (minor damage, clear liability) typically settle in 3-7 days. Complex cases (major damage, disputed liability, multiple vehicles) can take 2-4 weeks. During festive seasons or flood disasters, processing times increase significantly.
**What if Your Claim is Rejected?** Insurance companies can reject claims for various reasons: driving under influence, driving without valid license, breach of policy terms, or if damage isn't covered by your policy type. If rejected unfairly, you can appeal to the company's claims department or file a complaint with Bank Negara's BNMLINK or Financial Ombudsman.
**Small Claims Consideration** Before claiming for minor damage (under RM500), calculate whether it's worth it. Remember that making a claim resets your NCD to 0%, potentially costing you RM500-1,000+ in lost discounts over the next 5 years. For small damage, paying out of pocket often makes more financial sense.
â Save on car insurance by: (1) Comparing quotes from 3+ companies, (2) Maximizing your NCD by staying claim-free, (3) Increasing excess from RM300 to RM500-1,000, (4) Paying annually vs monthly (saves 5-8%), and (5) Buying during promotion periods. Average savings: 20-40%.
Compare quotes from at least 3 different insurance companies
Maintain claim-free record to earn maximum 55% NCD discount
Increase voluntary excess to RM500-1,000 for 10-15% lower premium
Pay annually instead of monthly to save 5-8% in processing fees
Look for promotions during festive seasons or renewal periods
Car insurance is a mandatory expense, but that doesn't mean you should overpay. Malaysian drivers can save 20-40% on insurance premiums through smart strategies without compromising essential coverage.
The key is understanding what factors affect your premium and making informed choices. Some strategies provide immediate savings, while others (like maintaining claim-free history) yield long-term benefits.
**Strategy 1: Compare, Compare, Compare** Premiums for identical coverage can vary by RM200-500 between insurers. Use online comparison platforms like CompareHero, Bjak, or PolicyStreet to get quotes from multiple companies within minutes. Never auto-renew without comparingâyour current insurer isn't always the cheapest.
**Strategy 2: Increase Your Excess Amount** Excess is the amount you pay out of pocket when making a claim (typically RM300-500 by default). Increasing to RM1,000 can reduce your premium by 10-15%. This strategy works well if you're a safe driver who rarely claimsâyou save annually and might never need to pay the higher excess.
**Strategy 3: Pay Annually Instead of Monthly** Many insurers offer monthly installment options, but they charge processing fees (usually 5-8% of total premium). Paying annually upfront eliminates these fees. Example: RM2,000 annual premium vs RM175Ă12 = RM2,100 monthly. Save RM100 by paying upfront.
**Strategy 4: Bundle Your Coverage** Some insurance companies offer discounts if you buy multiple policies (car + home + personal accident). While savings per policy are modest (5-10%), they add up. Additionally, managing one company is more convenient than dealing with multiple insurers.
**Strategy 5: Dashcam and Security Device Discounts** Some insurers offer 3-5% discounts for installing dashcams or approved security systems. While you need to invest in the device (RM200-800 for dashcam), it pays for itself in 1-2 years through premium savings plus providing evidence in disputes.
**Strategy 6: Time Your Renewal Strategically** Insurance companies often run promotions during festive seasons (Raya, Chinese New Year, Deepavali) offering extra discounts, vouchers, or free add-ons. If possible, time your renewal during these periods. Some companies also offer early renewal discounts (renew 30-60 days early).
**Strategy 7: Maintain Claim-Free Record** This is the most powerful long-term strategy. Every claim-free year increases your NCD by 5-10%. After 5 years at 55% NCD, you're saving RM1,000+ annually on a typical policy. For small damages under RM500, strongly consider paying out of pocket to protect your NCD.
**Strategy 8: Choose Your Car Wisely** Insurance costs should be considered when buying a car. Models with high theft rates, expensive repair costs, or powerful engines attract higher premiums. A Honda City costs RM800-1,000 less per year to insure than a Honda Civic, adding up to RM8,000-10,000 over 10 years.
Many Malaysian drivers make costly mistakes with their car insuranceâmistakes that can lead to claim rejections, overpaying premiums, or inadequate coverage when it matters most. Awareness of these pitfalls helps you avoid them.
**Mistake 1: Choosing Based Only on Price** The cheapest premium isn't always the best value. A company offering RM200 lower premium but with poor claim settlement, limited workshop network, or slow service will cost you more in frustration. Check claim settlement ratios and customer reviews, not just price.
**Mistake 2: Not Reading Policy Terms** Most people never read their policy document until claim timeâwhen it's too late. Key details buried in fine print include excess amounts, coverage exclusions, claim procedures, and betterment charges. Spend 30 minutes reading your policy to avoid surprises.
**Mistake 3: Under-Declaring Vehicle Modifications** Modified vehicles (body kits, aftermarket rims, performance upgrades) must be declared to your insurer. Failure to declare can result in claim rejection. Even minor modifications should be reportedâbetter safe than denied.
**Mistake 4: Forgetting to Update Details** Changing address, phone number, or vehicle usage (private to e-hailing) should be reported to your insurer. Outdated information can complicate claims or even invalidate coverage. Keep your insurer updated with current details.
**Mistake 5: Not Protecting High NCD** If you have 45-55% NCD, consider buying NCD Relief Protection (RM50-100/year). One claim without this protection means losing RM1,000+ in annual discount savings. The protection pays for itself many times over.
**Mistake 6: Delay in Reporting** Insurance policies require claim notification within 24 hours. Delayed reporting can result in claim complications or rejection. Even if you're unsure about claiming, report the incidentâyou can decide later whether to proceed.
**Mistake 7: Accepting First Quote** Loyalty to one insurer rarely pays. Insurance companies use complex algorithms and your premium can vary significantly year to year. Always get at least 3 quotes during renewal, even if you've been with the same insurer for years.
**Mistake 8: Assuming Full Coverage Means Everything** Even "comprehensive" insurance has exclusions: wear and tear, consequential loss, driving under influence, illegal activities. Don't assume everything is coveredâknow your policy's specific coverage and limitations.
Buying a new Honda is exciting, but don't overlook insurance in your enthusiasm. Use this comprehensive checklist to ensure you get the right coverage at the best price.
**Before Purchase:**
- Get insurance quotes for your desired Honda model before committing
- Factor annual insurance cost into your budget (typically RM3,000-6,000 depending on model)
- Check if you have existing NCD that can be transferred
- Understand bank insurance requirements if financing
**When Buying Insurance:**
- Compare quotes from at least 3 different insurance companies
- Verify claim settlement ratio and customer reviews
- Check panel workshop network includes authorized Honda centers
- Read full policy terms and coverage details
- Confirm excess amount and consider increasing for lower premium
- Add essential coverage: Windscreen, Flood, Passenger Liability
- Consider NCD Relief Protection if you have high NCD
- Verify sum insured matches vehicle value
- Confirm all personal details are accurate
**After Purchase:**
- Keep insurance policy document in car at all times
- Save insurance company hotline number in phone
- Download insurance company mobile app
- Keep digital copies of policy and cover note
- Set reminder for renewal 30 days before expiry
- Take photos of vehicle condition for records
- Understand claim process before needing it
- Keep emergency kit in car (warning triangle, camera, notepad)
Following this checklist ensures you're fully protected and prepared for any situation on Malaysian roads.
Contact Safwan Din for personalized insurance guidance and complete Honda + Financing + Insurance packages at competitive rates.
Get Complete Package Quoteâ Yes, comprehensive insurance is worth it for most Honda owners in Malaysia. It costs RM3,000-6,000/year depending on model but protects against repairs that could cost RM10,000-50,000. It's mandatory for financed vehicles and qualifies for NCD discounts up to 55%.
Protects your investment against accidents, theft, fire, and natural disasters
Mandatory requirement for all bank-financed vehicles
Qualifies for NCD which can reduce premiums by up to 55% over time
One accident can cost more than 10 years of insurance premiums
Provides peace of mind and financial security on Malaysian roads
Car insurance in Malaysia is more than just a legal requirementâit's your financial safety net on the road. Understanding the types of coverage, costs, NCD system, and claim process empowers you to make informed decisions that protect both your vehicle and your wallet.
For Honda owners specifically, comprehensive insurance is the smart choice, especially for financed vehicles. While it costs more upfront (RM1,500-4,000 annually for most models), it provides peace of mind knowing that your investment is protected. The combination of comprehensive coverage with essential add-ons (windscreen, flood, passenger liability) offers complete protection for Malaysian road conditions.
Remember that insurance is a long-term commitment. Maintaining a claim-free record builds valuable NCD that saves you thousands over your driving lifetime. Choose your insurance company based on service quality and claim settlement reputation, not just the cheapest premium.
Whether you're buying your first Honda City or upgrading to an HR-V or Civic, take time to understand your insurance options. Compare quotes, read policy terms, and choose coverage that matches your needs and budget. The few hours invested in research can save you thousands of ringgit and countless headaches.
At Safwan Din Honda, we understand that buying a car involves more than just choosing a modelâit's about complete package planning including financing, insurance, and after-sales support. We're here to guide you through every step of the journey.
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