Car Insurance Guide

P License Car Insurance Malaysia: New Driver Guide 2026

First car? P-plate? Here's everything you need to know about car insurance as a new driver in Malaysia — and how to keep costs as low as possible.

How much does car insurance cost for a P-license driver in Malaysia?

P-license (probationary) drivers pay higher car insurance premiums in Malaysia due to their inexperienced driver status. A typical first car (Perodua Myvi or Axia) costs RM800-1,600/year for comprehensive coverage as a new driver. You'll also face a compulsory excess of RM300 for any at-fault claim (until you have 2+ years driving experience). The best way to reduce cost: compare quotes on Bjak, choose a lower sum insured if the car is older, and start building your NCD from year one.

Updated 2026 • Malaysia

What Changes for P-License Drivers?

  • Compulsory excess of RM300
  • Higher premium loading (15-50%)
  • Must be added as named driver if not policyholder
  • NCD starts at 0%

NCD Is Everything — Start Building It Now

5 Years of Safe Driving = 55% Discount for Life

NCD is your most valuable long-term asset as a driver. After 1 year claim-free: 25% discount. After 2 years: 30%. After 3 years: 38.33%. After 4 years: 45%. After 5 years: 55% — and it stays at 55% forever as long as you don't claim. On a RM1,500 premium, 55% NCD saves you RM825/year. Over 10 years, that's RM8,250 in savings.

How Much Does Insurance Cost as a New Driver?

Car ModelYearEst. Premium (New Driver)With 55% NCD (Year 5+)
Perodua Axia2020RM900–1,100RM400–500
Perodua Myvi2020RM1,100–1,400RM500–630
Proton Saga2020RM900–1,200RM400–540
Honda City2020RM1,600–2,200RM720–990
Toyota Vios2020RM1,500–2,000RM675–900

Estimates only. Actual premiums vary by insurer, age, and add-ons. Compare on Bjak for your exact quote.

Third Party or Comprehensive for Your First Car?

Comprehensive is almost always the right choice for a new driver. Here's why:

As a new driver, you're statistically more likely to be in a minor accident. Third party insurance won't pay for your own car's damage — you'd pay the full repair bill yourself. The extra cost of comprehensive (typically RM300-600 more than third party) is cheap insurance against your own mistakes.

Exception: If your car is over 10 years old and worth under RM15,000, the sum insured may not justify comprehensive coverage. In that case, third party fire and theft (TPFT) is a middle ground.

Tips to Save Money as a New Driver

1

Compare on Bjak

Different insurers price new drivers differently. Bjak shows all quotes — the cheapest for your profile could be Etiqa, MSIG, or another insurer you wouldn't have checked otherwise.

2

Choose market value, not agreed value

Agreed value costs 5-10% more. For a depreciating first car, market value sum insured is usually fine.

3

Skip add-ons you don't need yet

Windscreen coverage is worth it. NCD protector at 0% NCD is not useful yet. Skip optional add-ons to lower year 1 cost.

4

Drive carefully for 5 years

The biggest saving comes from building NCD. One at-fault claim could reset your NCD and cost you thousands over the next 5 years.

5

Buy an affordable first car

Insurance premium is based partly on car value. A Perodua Axia or Myvi has much lower insurance than a Honda Civic or Toyota Corolla.

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P License Car Insurance Malaysia FAQ

No. NCD belongs to the policyholder and cannot be transferred between different people. Your NCD starts at 0% on your first policy. However, if your parents buy the car in their name initially, their NCD would apply — but the NCD stays with them, not you.

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