Only third-party insurance is compulsory in Malaysia, although comprehensive policies are widely available. Despite high car prices, insurance is quite affordable and is calculated based on a number of factors: the value insured, the number of passengers the vehicle is licensed to carry, the engine capacity, and any no-claims discount you’re entitled to. Insuring a new Honda Civic will cost about RM3,100 per year, assuming zero no-claims discount. Policies run for a calendar year.

If you buy a new or used car from a dealer, they will usually sell you insurance at the same time. You’re tied to using repair shops approved by your insurer, and these may not always be in a convenient location. If your car is over four years old and you need replacement parts for an insurance claim, you will have to pay a percentage of the value of any new parts used or accept a repair with second-hand parts. It’s not really worth shopping around in the hope of a better rate as the insurance industry is highly regulated, so policies are almost identical and prices are fixed.