Best Car Insurance Plans in Malaysia – 2025 Edition
Car insurance is not just a legal requirement in Malaysia—it is your financial safeguard. With Malaysia petrol prices fluctuating, increasing traffic cameras in Malaysia, and unpredictable road conditions, having the right insurance in Malaysia provides peace of mind.
Best Car Insurance Plans in Malaysia (2025)
Here’s a comparison of the best car insurance plans in Malaysia for 2025 based on coverage, price, and benefits.
1. Etiqa Takaful Car Insurance
Comprehensive and third-party coverage
Free towing service
Fast claims process
2. Allianz Motor Comprehensive
Customizable add-ons (flood coverage, windscreen protection)
High claim approval rate
24/7 emergency assistance
3. AXA Affin SmartDrive Enhanced
Flexible coverage options
Key replacement up to RM10,000
Free personal accident coverage
4. Takaful Malaysia Motor Takaful
Shariah-compliant insurance
Fast claims approval
Cashback for no claims
5. Zurich Car Insurance
Easy renewal process
Attractive premium discounts
Roadside assistance services
How to Choose the Best Car Insurance
When selecting car insurance, consider the following factors:
Type of Coverage: Comprehensive vs. Third Party
Premium Price: Balance between cost and coverage
Claims Process: The faster, the better
Additional Coverage: Flood, windscreen, and personal accident
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Whether you’re looking for the best insurance in Malaysia or planning to sell your used car, having the right protection is crucial. Stay informed, compare plans, and get the best deal today!
Frequently Asked Questions (FAQ) — Best Car Insurance Plans in Malaysia 2025
Q: What types of car insurance are available in Malaysia?
A: There are generally three main types , Third-Party Only (TPO): covers damage you cause to others, their vehicle or property. It is the minimum legal requirement. Third-Party, Fire & Theft (TPFT): includes TPO + protection from fire damage and theft of your car.Comprehensive: covers TPFT + your own vehicle damage (accident, vandalism etc.), accessories (with add-ons), windscreen, flood or natural disaster coverage depending on the plan.
Q: Is car insurance compulsory in Malaysia?
A: Yes. At minimum, you must have Third-Party car insurance to renew your road tax. Driving without valid insurance (and road tax) is illegal.
Q: What is a No-Claim Discount (NCD), and how does it work?
A: NCD is a discount you can receive on your insurance premium when you have no claims for consecutive years.It helps reduce premium cost (up to a maximum, often around 55%) depending on the insurer.
Q: What add-ons or special coverages should I consider?
A: Some useful extras in 2025 include, Flood, special perils, and natural disaster coverage. Windscreen protection.Key replacement.Roadside assistance, towing services.Coverage for EV-related parts (chargers, cables) if you have an electric vehicle.
Q: How is the premium calculated? What factors affect cost?
A: Several factors influence your insurance premium including, Age and value of the vehicle. Older or lower-value cars may attract cheaper premiums or simpler cover. Driving record (number of past claims), NCD. Location (flood-prone areas, areas with high risk of theft etc.). How much you drive (mileage). Some plans now give discounts for “drive less, save more” or usage-based / mileage-based premium reductions.Add-ons chosen. Adding extra coverages increases premium.
Q: Can I renew my insurance early?
A: Yes. Malaysian insurance policies often allow renewal ahead of expiry (sometimes up to two months before expiry).
Q; What is Car Takaful, and how is it different?
A: Car Takaful is a Shariah-compliant version of vehicle insurance where risk is shared among participants rather than being a commercial risk-transfer model.It offers similar types: comprehensive, third-party, etc., and many of the same add-ons. The difference is in the operational model (e.g. surplus sharing, how claims are handled, compliance).
Q: How do I choose the “best” plan for me?
A:Balance cost vs coverage: cheapest isn’t always best if the policy doesn’t cover what you might need.Check the insurer’s reputation for claims service and customer reviews.Look at the fine print of add-ons. They may cost more than you expect.Consider how often you drive, where you drive, flood risks etc.Use comparison tools or aggregators (e.g. Fatberry, BJAK, Motorist) to see what different providers offer.
Q: Who were some of the top insurers/plans in Malaysia in 2024-2025?
A: Here are insurers known to perform well in 2025 trends , Generali: awarded “Cheapest Car Insurance Malaysia 2025” by iBanding; also ranked highly for user-experience and features.Etiqa / Etiqa Takaful: known for reasonable premiums + good coverage + promotions.Allianz: strong claim approval rates, lots of add-ons & emergency / roadside services.Liberty General Insurance: good options for flood/ev allowances and other freebies in some plans.
Q: What should I watch out for / pitfalls to avoid?
A: Under-insuring: Insuring at a lower sum than market value may limit your claim payment. Exclusions in “standard” policies: Many plans don’t cover natural disasters, flood, or accessories unless you add those in. Hidden excesses or high deductibles. and Not renewing on time: you lose coverage, can’t renew road tax, risk legal penalties.
Read More: Why Second-Hand EVs Are Becoming More Popular in Malaysia?
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