How to Lower Your Car Insurance Premium in Malaysia (2026)
8 proven strategies — from protecting your NCD to comparing all 16 insurers. Ranked by impact. No gimmicks.
Protect your NCD — never claim for minor damage
Up to 55% offYour NCD (No Claim Discount) grows 0% → 25% → 38.33% → 45% → 55% over 5 claim-free years. At 55% NCD, you pay 45% less than a new driver on the same policy. Losing it to a RM1,500 claim can cost you RM2,000–4,000 in extra premiums over 5 years. Pay small repairs out-of-pocket.
NCD explained →Compare all 16 insurers every year — don't auto-renew
10–25% offPrices vary up to 25% between insurers for the exact same car. Your current insurer rarely gives you the best rate at renewal. Use Bjak.my to compare all 16 in 3 minutes — the cheapest quote is often from a different insurer than last year.
Add voluntary excess to lower your base premium
RM50–300/yearAgree to pay an extra RM200–1,000 out-of-pocket per claim, and your insurer reduces your annual premium. Best for experienced drivers with 55% NCD who rarely claim. Not recommended for new drivers.
Voluntary excess guide →Ensure your sum insured matches actual market value
RM50–200/yearIf your car is worth RM40,000 but insured for RM55,000, you're overpaying. Check your car's current market value on Carsome or Mudah before renewal and set the correct sum insured. Don't under-insure either — you'll get less in a total loss claim.
Remove add-ons you don't need
RM50–200/yearReview your current add-ons. PA (personal accident) coverage overlaps with your medical card or life policy. Waiver of compulsory excess (RM30–80) is only worth it if you're prone to claims. Each add-on removed reduces your premium.
Add-ons guide →Add all regular drivers as named drivers
Avoid RM400/claimIf your spouse or children drive your car regularly, add them as named drivers. If an unlisted driver causes an accident, you pay a compulsory excess of RM300–400 extra on top of any voluntary excess. Named driver fees are typically RM10–30 per driver per year.
Named driver guide →Consider third-party for very old or low-value cars
60–70% cheaperIf your car is worth less than 10× the comprehensive premium, third-party may make more financial sense. Example: 2007 Proton Wira worth RM8,000. Comprehensive ~RM600/year = 7.5% of car value annually. Third-party ~RM200/year. At that value, third-party saves RM400/year.
Third-party vs comprehensive →Renew on time — avoid lapsed policy penalties
Avoid NCD lossIf your policy lapses by more than 90 days without renewal, your NCD resets to 0%. Renewing on time (or up to 2 months early) protects your NCD. Set a calendar reminder 2 months before your policy expiry.
Renewal guide →Start with the Biggest Saving: Compare All 16 Insurers
Takes 3 minutes. Same coverage, potentially 25% cheaper insurer. Free comparison on Bjak.
Compare 16 Insurers Free on Bjak →16 BNM-licensed insurers · Free · Instant e-policy
Frequently Asked Questions
What is the most effective way to lower car insurance in Malaysia?
The two most impactful levers are: (1) protecting your NCD — at 55% NCD you pay 45% less than a driver at 0% NCD; and (2) comparing all 16 BNM-licensed insurers annually using Bjak.my — prices vary up to 25% for the same car. Combining both can save RM500–1,500/year.
Can I lower my car insurance without reducing coverage?
Yes. The best ways to lower premium without reducing coverage: compare all 16 insurers annually (same coverage, lower price), add voluntary excess (take on more risk per claim in exchange for lower premium), and insure at the correct market value (not over-insured). You can keep the same comprehensive coverage while paying significantly less.
Does driving a smaller car reduce insurance cost in Malaysia?
Yes. Two factors: (1) engine capacity (CC) — higher CC has a higher base tariff rate; (2) market value — lower value cars have lower comprehensive premiums. A Perodua Axia (1,000cc, ~RM35k) pays roughly half the premium of a Honda HR-V (1,500cc turbo, ~RM110k).