Motoring Guide : Insurance And Road Tax.

Third
party insurance is compulsory in Malaysia but of course given
the high cost of motor vehicles and the relatively high repair
cost you may incur in the event of an accident it is best to take
out comprehensive insurance while you are here. Insurance rates
are not as high as one might think given the high number of accidents
in this country and the cost of cars. A 2000cc car insured for
RM100,000 will incur an annual insurance rate of around RM2800
and if the insured value is twice that amount the insurance will
cost around RM4200 a year. Windscreen insurance can add to that
and insurance coverage of RM5000 for a new windscreen will add
around RM750 to the annual premium.



The insurance industry is highly regulated so you will not be
able to shop around for a low rate as they are fixed. All you
can hope for is improved service in the event that you make a
claim. Some expatriates will be shocked to learn that it can take
up to six months to receive reimbursement if your car is stolen
as there are a number of checks which insurance companies are
obliged to complete before they will settle your claim. As car
theft is quite common in Malaysia this can be quite a hardship.
In many cases the cars are never recovered so insurance companies
will wait until they are satisfied the car is not going to reappear.
They are not required to settle the claim until six months have
passed which is much longer than many western countries and some
local insurance companies seem to leave payment until almost the
last day. For this reason it may be smart to check with the insurance
company what the average pay out time is if your car is stolen.



If you buy a new car then the car seller will arrange insurance
with the company that they have a relationship with so if you
want to use your own preferred company you may have to put some
pressure on them to change. Road tax is geared to the size of
your car engine and basically if you have car with over 2500cc
engines expect to pay a hefty annual tax. For example the road
tax for an 1800 cc car is just RM325 a year rising to RM895 for
a car with 2500cc. After that the rate increases by RM250 for
every 100cc so a car with 3000cc will cost RM2155 a year. If you
choose a car with an engine over 3 litres the rates climb even
more steeply. As in most countries you are expected to display
your road tax in the wind screen of your car and since there are
no reminders make sure you make a note to renew it when it comes
due or you could face a fine.