Getting Car Insurance and Road Tax in Malaysia

Motor insurance is compulsory in Malaysia and must normally be renewed each year before the vehicle’s road tax can be renewed. Foreign residents can obtain insurance for a locally registered vehicle using their passport, valid driving licence and vehicle registration details, although individual insurers may request additional documents. JPJ allows private-vehicle road tax to be renewed for six months or one year, provided insurance is valid for the same period.

Types of Motor Insurance

Several levels of cover are available. Basic Act Cover provides the minimum protection required by law, covering death or injury caused to third parties. Third-party insurance also covers liability for damage caused to another person’s vehicle or property.

Third-party, fire and theft insurance adds protection if your own car is stolen or damaged by fire. Comprehensive insurance offers the widest protection, including accidental damage to your own vehicle as well as third-party liabilities, theft and fire. Natural disasters such as floods are not necessarily included unless special-perils protection is selected.

Typical Insurance Cost for a RM200,000 car is around RM5,000 before applying any no claims bonus which can go up to 55%, after five years accident free driving. The exact insurance cost will depend on the specific car and its engine capacity, as well as potential repair costs, which tend to be higher if the car is fully imported or European. Extra charges can apply for windscreen cover or damage from flooding (which is not uncommon in Malaysia)

Road Tax

Road tax, officially called the Motor Vehicle Licence or LKM, must also be renewed regularly. For conventional petrol and diesel cars, the amount is primarily based on:

· Engine capacity in cubic centimetres, or cc

· Whether the vehicle is classified as a saloon or non-saloon vehicle

· Whether it is privately or company registered

· Whether it is registered in Peninsular Malaysia, Sabah, Sarawak, Labuan or a duty-free island

For a privately owned 2500cc saloon car in Peninsular Malaysia the current annual rates are RM880. Cars above 3000 cc would increase to RM2,130 plus RM4.50 for each additional cc.

Rates and indicative prices were checked in July 2026 and may change. Owners should obtain quotations from several insurers before renewing.