KUALA LUMPUR: Malaysian motorists are being encouraged to look beyond price when comparing car insurance, as different insurers may assess risk differently and offer different premiums, coverage and benefits for the same vehicle.
Car insurance comparison is the process of reviewing premiums, coverage and policy terms from different insurers before choosing or renewing a policy. While price remains an important consideration, motorists should also understand the protection included in their car insurance policy.
The General Insurance Association of Malaysia (PIAM) highlighted the importance of comparison in its September 2026 guide on comparing car insurance. The guide encourages motorists to explore and compare motor insurance options according to their driving habits, vehicle age and budget.
The differences in car insurance pricing reflect Malaysia's liberalised motor insurance market. Since July 1, 2017, Bank Negara has allowed individual insurers and takaful operators to determine premiums for comprehensive and third-party, fire and theft motor insurance using broader risk factors.
Under this framework, insurers can assess risk differently when determining car insurance premiums. This means motorists should not assume that automatically renewing the same policy will provide the most suitable price or protection available to them.
Coverage matters
Under risk-based pricing, different insurers may offer different car insurance premiums for the same driver and vehicle because each insurer applies its own assessment of risk.
However, the premium is only one part of the comparison.
PIAM advises motorists to consider the type of coverage required and whether the vehicle is insured at market value or agreed value. Other considerations include Special Perils protection, approved repairer networks and appropriate e-hailing coverage where applicable.
Motorists should also review their No Claim Discount (NCD), sum insured, excess, exclusions, windscreen protection and other optional benefits. These factors can affect both the cost of car insurance and the level of protection provided.
Two car insurance policies with different premiums therefore may not necessarily provide the same protection. A lower premium should be considered alongside what is covered, what is excluded and the benefits included in the policy.
With this in mind, digital motor insurance platform Bjak Sdn Bhd builds technology to make essential services simpler and more accessible, while helping motorists compare insurance options and make more informed decisions based on their needs.
"Car insurance comparison should not be about choosing the cheapest option alone,” said Bjak chief executive officer Ronald Lim.
“When insurers assess risks differently and policies offer different levels of protection, motorists should be able to see those differences clearly before deciding what works for them.”
Renewal options
Comparison becomes particularly relevant at renewal because a vehicle's value, a motorist's circumstances and the car insurance options available may change over time.
A policy selected previously should therefore not automatically be assumed to remain the most suitable option at the next renewal.
Digital comparison platforms have made it easier for motorists to review different car insurance options without approaching individual providers separately.
Through Bjak, motorists can compare car insurance quotes from up to 16 insurers and takaful operators, allowing them to review available premiums, coverage and optional benefits in one place before making a decision.
As Malaysia continues to operate under a liberalised, risk-based motor insurance pricing environment, comparison gives motorists a clearer view of the options available to them.
For motorists approaching their next renewal, the principle is straightforward: compare car insurance based on both price and protection before renewing. For more information, visit Bjak’s car insurance comparison page and PIAM’s guide on comparing car insurance.
