Motor Insurance Renewal Checklist: 5 Things to Check Before You Renew

Most Malaysians approach motor insurance renewal the same way: find the lowest quote, click confirm, move on. It takes five minutes and feels like a sensible decision. 

The problem appears later, usually after a claim, when the plan you chose turns out not to cover what you needed it to cover. By then, the savings on the premium have cost you more than the difference would have. 

Motor insurance renewal in Malaysia is a coverage decision that is not to be taken lightly as without an active policy, all-accident related costs including repair to your vehicle, third-party bodily injury and property damage claims fall entirely on you. Also, if you let your policy lapse too long, you risk losing your accumulated No Claim Discount (NCD) gradually and may revert to zero after five years of non-utilisation. Here is what to do to not miss out on better coverage and savings.  

What You Are Trading Away with A Cheaper Plan 

Motor insurance is fundamentally a mechanism for transferring financial risk. The premium charged by an insurer reflects the scope of protection provided and the level of risk the insurer agrees to assume. As a result, a lower insurance premium may indicate narrower coverage, higher deductibles or excesses, lower benefit limits, or the exclusion of certain perils that may otherwise be available through optional extensions or add-ons. 

When comparing quotations, policyholders should look beyond the premium amount and assess the coverage provided under each policy. Two policies with similar premiums may offer materially different levels of protection, while a lower-priced policy may leave important risks uninsured. These differences often only become apparent when a claim is made. 

As highlighted in PIAM’s consumer education materials, motor insurance is not a one-size-fits-all product. The appropriate level of protection depends on factors such as the vehicle’s value, the owner's risk profile, exposure to location-specific risks, and claims history. Before renewing your policy, consider the following five checks to ensure your coverage remains appropriate for your need 

The Five Things to Check at Every Renewal 

1. Windscreen cover: A cracked or chipped windscreen is one of the most common damages experienced by motorists on Malaysian roads and often requires immediate repair or replacement . Without a windscreen add-on, you generally have two options: pay for the repair out of pocket or make a claim under your main motor insurance policy. If you choose to claim under the main insurance policy, it may affect your No-Claim Discount (NCD), which can cost more in the long run than the price of the add-on itself. For this reason, windscreen cover is often considered a cost-effective protection against frequent minor damage. When renewing your motor insurance policy, confirm whether windscreen cover is already included in your quotation and if it is not, consider adding it. 
2. Special Perils cover: Floods, landslides, earthquakes and other natural disasters are generally excluded under a standard comprehensive private car policy unless the Special Perils extension is purchased. Given the potentially severe financial impact of flood damage, policyholders should carefully assess their exposure to such risks. For vehicles located in flood-prone areas, the absence of Special Perils cover may represent the single largest uninsured risk under the policy. 
3. Towing mileage limits: Not all towing coverage is unlimited. Some motor insurance policies only cover towing up to a certain distance, from example within 150 kilometres radius, depending on the insurer. If your vehicle breaks down beyond that radius, you may have to pay the extra towing charges yourself. Before renewing your policy, check how much towing coverage is included so you know what to expect in an emergency. Check your policy’s towing terms and confirm whether your insurer offers extended towing mileage options or plans that you may consider to add-on. In addition, downloading your insurer’s Digital Roadside Assistance mobile application as it can help ensure faster dispatch, more efficient support during breakdown situations, tracking of vehicle repair and claims submission. 
4. Daily-use fit: Ensure your motor insurance still reflects how your vehicle is used today. Changes in mileage, parking conditions, or vehicle value can alter your risk exposure over time. Coverage should therefore be reviewed regularly, rather than renewed by default. 
5. Price as a benchmark: A significantly lower premium compared to similar motor insurance quotations may indicate differences in the scope of coverage. This can include reduced benefits, lower coverage limits, exclusions of certain perils, or higher policy excesses. These elements directly affect claim payouts and only become fully apparent when a claim is made, at which point the policy structure can no longer be changed. 

What Flood Damage to a Vehicle Actually Costs 

Flood damage is expensive to repair and, in many cases, forces a total loss declaration. Repair costs on Malaysian vehicles can run from RM6,000 to over RM15,000 or more depending on the make and model and the severity of the damages. If the engine has been started after submersion, a common mistake, the damage is typically far worse that may also lead to a beyond economic repair situation. 

According to PIAM CEO Chua Kim Soon, flood cover uptake increased by 160% in 2022 following the severe December 2021 floods, rising from 5% to 12% of motor policies in a single year. By 2023, the figure had reached 14%. Despite this progress, the majority of Malaysian motorists still drive without special perils. “As floods are a natural occurrence in Malaysia, with severity growing each year due to climate change impact, we encourage individuals and businesses to take proactive steps to protect themselves and their assets,” Chua said.  

During the Hat Yai floods in December 2025, insurers activated emergency advisories and expedited claims support for affected Malaysian vehicles stranded in Thailand — many of which were unprotected because their owners had not added a special perils extension. The special perils extension typically costs up to 0.5% of the vehicle’s insured value depending on individual insurers, which works out to around RM42 a month for a vehicle insured at RM100,000. For further guidance on flood risk and vehicle protection, refer to PIAM’s articles on avoiding flood damage to your vehicle and how to prepare for the monsoon season. 

Why the Windscreen Add-On Costs Less Than the Alternative 

The windscreen decision is where the price-versus-coverage trade-off is most calculable. 

Adding windscreen cover may requires only a modest additional premium depending on the sum insured, but it can help you avoid losing your No-Claim Discount (NCD).  Without this add-on, a windscreen claim may need to be made under your main comprehensive motor insurance policy, which could result in the loss of your NCD. For private cars in Malaysia, the NCD increases with each claim-free year—from 25% after the first year to a maximum of 55% from the fifth year onwards. 

This means that a relatively small windscreen repair could end up costing much more in the long run if it causes you to lose your accumulated NCD. By comparison, purchasing windscreen cover is often a more cost-effective way to protect both your windscreen and your NCD. For a full breakdown of how NCD accumulates and how to protect it, you may refer to the companion article: How to Transfer Your NCD When Buying a New Car in Malaysia. 

Check Your Policy Before the Next Renewal 

When your motor insurance renewal notice arrives, take the time to review the coverage offered, not just the premium. Before you confirm your next renewal, check all five items on this list against your actual situation: where you park, how far you drive, whether your area is flood-prone, and whether your current plan still fits the vehicle you own today. 

Renew only after you have a clear understanding of what is covered, what is excluded, and what you are paying for. 

Frequently Asked Questions 

Does my standard comprehensive policy cover flood damage?

No. Flood damage is excluded from standard tariff comprehensive motor policies in Malaysia. A special perils extension must be added separately for flood, landslide, and other natural disaster coverage. 

Will making a windscreen claim affect my NCD?

It depends on how the claim is made. A windscreen claim made under a windscreen add-on does not affect your NCD. A windscreen repair claimed under your main comprehensive policy without the add-on will reset it at renewal. 

What happens if my car breaks down beyond my towing coverage limit?

If your vehicle breaks down beyond the coverage limit, you may have to pay the extra towing charges yourself. Before renewing your comprehensive motor insurance policy, check how much towing coverage is included so you know what to expect in an emergency. Check your policy’s towing terms and confirm whether your insurer offers extended towing mileage options or plans that you may consider to add-on. In addition, downloading your insurer’s Digital Roadside Assistance mobile app can help ensure faster dispatch, more efficient support during breakdown situations, tracking of vehicle repair and claims submission. 

How do I know if my current plan still suits my needs?

Review where you park, how frequently you drive, whether your area is flood-prone, and whether your vehicle’s value has changed. If any of these have shifted since your last renewal, your coverage should be adjusted accordingly.