Car Insurance Guide
Used Car Insurance Malaysia 2026 — Complete Buyer's Guide 2026
Just bought a used car in Malaysia? Here's exactly what insurance to get, how to transfer NCD, what coverage you need, and how to get the best price. Includes Shopee RM25 cashback tip.
What insurance do I need when buying a used car in Malaysia?
You need at minimum third-party insurance (legally required). For used cars under 10 years old or worth over RM20,000, comprehensive insurance is strongly recommended. When you buy a used car, you must transfer the insurance to your name — this is separate from the JPJ ownership transfer. Your NCD from your previous car does NOT automatically transfer; you need to request an NCD transfer letter from your old insurer.
Updated 2026 • Malaysia
Used Car Insurance Checklist — What to Do After Buying
Complete JPJ ownership transfer first
Go to JPJ (or use a runner/puspakom agent) to transfer the car's ownership to your name. You'll need: Puspakom B2 inspection (for cars 15 years+), insurance certificate, road tax, and grant.
Get insurance in your name
The seller's insurance does NOT transfer to you. Buy new insurance in your name before road tax renewal. You can buy online on Bjak or Shopee — takes 5 minutes, e-policy issued instantly.
Request NCD transfer if applicable
If you're selling your old car and buying this one, request an NCD Transfer Letter from your old insurer. This transfers your accumulated NCD (up to 55%) to the new car's policy, saving significant premium.
Renew road tax
After insurance is active in your name, renew road tax at Pos Malaysia, MyEG online, or JPJ. Bring your IC, grant, and insurance certificate.
Check car history (optional but recommended)
Use Carsome, myCarInfo (JPJ portal), or ask JPJ for a vehicle history check. Verify no outstanding summons, hire purchase (loan) still active, or accident history recorded.
What Insurance Coverage for Used Cars?
| Car Age / Value | Recommended Coverage | Why |
|---|---|---|
| Under 5 years, RM30,000+ | Comprehensive | Car still has high value — protect against theft, own damage, accidents |
| 5–10 years, RM15,000–30,000 | Comprehensive | Still worth insuring fully — repair costs can exceed value otherwise |
| 10–15 years, RM8,000–15,000 | Comprehensive or TPFT | Consider TPFT if keeping repair costs low is priority |
| Over 15 years, under RM8,000 | Third Party or TPFT | Comprehensive premium may approach or exceed car value — not cost-effective |
Comprehensive is always the safest option. For very old cars (15+ years, RM5,000 value), the annual comprehensive premium may be RM400–600 — close to the car's repair value. In that case, third party protects others legally at RM80–150/year.
NCD Transfer — How to Keep Your Discount When Changing Cars
Your 55% NCD Can Save RM400+/Year — Don't Lose It
Used Car Insurance Tips Specific to Malaysia
Check for Outstanding Hire Purchase
If the previous owner still has an active car loan, the bank technically owns the car. Verify the car is fully settled before buying — use myCarInfo or check the grant for finance endorsement.
Verify No Outstanding Summons
Buy a used car with unpaid JPJ/PDRM summons = your problem now. Check via MySikap (JPJ) or BayarSaman.com before finalizing. Negotiate summons clearance into the sale price.
Add Special Perils for Flood
Malaysia floods regularly. Used car buyers often skip flood cover to save RM50–100/year. A single flood event can cost RM5,000–20,000 in engine damage. Worth adding, especially in KL, JB, Kelantan.
Get Agreed Value for Modified Cars
If buying a modified or well-maintained classic, consider Agreed Value insurance. Market Value will undervalue modifications. Agreed Value lets you set the sum insured based on actual invested value.
How to Get Cheapest Insurance for Your Used Car
Compare all 16 insurers on Bjak — used car premiums vary significantly by insurer. Etiqa is often the cheapest, but MSIG, Kurnia, and Tokio Marine are competitive for specific models.
Apply your NCD — if you have 55% NCD from a previous car, the premium drops dramatically. A RM1,200 base premium with 55% NCD = RM540.
Buy on Shopee for bonus value — Shopee offers Allianz, Zurich, and Takaful Ikhlas. If one of these is competitive for your car, buy on Shopee to get FREE Road Tax voucher + RM25 cashback (code PQPOJB) + ServAuto car service vouchers.
Consider TPFT for old cars — for cars over 12–15 years worth under RM10,000, Third Party Fire & Theft (TPFT) at RM100–200/year may be more cost-effective than comprehensive at RM400–600/year.
Compare Car Insurance Prices
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Used Car Insurance Malaysia 2026 — Complete Buyer's Guide FAQ
Legally, no — the Road Transport Act requires valid insurance at all times. Practically, the seller's insurance covers the car until it's transferred. Get insurance sorted within the same day or next day of purchase. For safety, buy online on Bjak or Shopee before picking up the car.
Get Insurance for Your Used Car — Free Road Tax + RM25 Cashback
Buy on Shopee for FREE Road Tax voucher + RM25 cashback (code PQPOJB). Or compare all 16 insurers on Bjak to find the cheapest price for your specific used car.
