7 Common Policy Exclusions That Could Leave You Unprotected

Many drivers commit the mistake of only discovering policy exclusions after a claim is rejected. Knowing what your car insurance doesn’t cover is just as important as knowing what it does.

Below are the most common exclusions in Malaysia and how to avoid costly surprises.

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1. Unnamed Drivers

Letting someone who isn't listed on your policy drive your car usually means a compulsory excess (commonly RM400) applies on any own-damage claim — and in more serious cases, the claim can be rejected outright.

Avoid: Add regular drivers to your policy.

2. Driver Age Limits

Young or inexperienced drivers (e.g. under 21, or holding a P licence) usually need to be properly named on the policy, and may still face extra excess or premium loading even when named.

3. Undeclared Modifications

Non-declared upgrades can void claims.

4. Wear & Tear

Mechanical failures aren't accidental damage.

5. Driving Under Influence

Alcohol or drugs invalidate coverage.

6. Natural Disasters Without Add-On

Special Perils coverage is offered by insurers, and availability varies by insurer. Before renewing your car insurance, it is recommended to exercise due diligence and check whether the Special Perils coverage is included in your policy package or not.

7. Unauthorised Usage

E-hailing vehicles require specific e-hailing insurance policies. Drivers who use their personal cars for e-hailing purposes with a non-e-hailing policy risk getting their car insurance claims voided by the insurer.

Maximise Your Car Protection with Drive+

When renewing with PolicyStreet and reviewing available promotions such as the Drive+ membership benefits, it's a great opportunity to reassess your policy exclusions and ensure your protection matches your current needs.

Drive+ is a loyalty membership programme launched by PolicyStreet, available in three tiers: — Lite (RM49.90), Standard (RM79.90), and Premium (RM109.90)

Drive+ members are entitled to one Loyalty Rewards package per year, worth up to RM360 in vouchers and discounts depending on the tier selected, made up of:

Up to RM120 off road tax renewal
RM40 battery replacement voucher
RM30 service maintenance voucher
RM50 dashcam voucher
RM100 car tinting voucher
RM20 car rental voucher

For full Drive+ terms and current campaign details, visit PolicyStreet's Terms & Conditions.

Review Before You Renew With PolicyStreet

PolicyStreet encourages drivers to get a quote first and renew at the right time, ensuring both savings and proper coverage review.

During promotional periods, you can:

Save on premiums
Review add-ons like special perils
Confirm driver eligibility

Compare car insurance quotes at PolicyStreet now.

Frequently Asked Questions

1. Can I make a claim if my driving license has expired?

Yes, you can still file a car insurance claim even if your driving license has expired, as long as your insurance policy and road tax is active and valid at the time of the accident. However, your insurer may take this into account during assessment, which may result in penalties.

2. Can I make a claim if my road tax has expired?

If your road tax has expired at the time of the accident, your claim is likely to be rejected by the insurer. This is why it is important to ensure your road tax is always kept active and up to date.

3. How do I make a car insurance claim after an accident?

If you've been involved in an accident, here's what you need to do to make a car insurance claim:

Move to a safe location and check for injuries
File a police report within 24 hours after the accident occurs
Document the scene and exchange details with the other driver
Notify your insurer as soon as possible after the accident
Send your car to a panel workshop for repairs
Submit your documents to your insurer to support your claim

4. How long does a car insurance claim take to process?

The time it takes to process a car insurance claim varies depending on the complexity of the case and the insurer:

Minor claims (e.g. minor dents) — typically resolved within a few days
Standard accident claims — usually take 2–4 weeks
Complex claims (e.g. total loss, disputed liability) — may take longer depending on investigation required

To speed up your claim, ensure you submit all required documents promptly, including your police report, photos, and any supporting evidence to your insurer.

5. Can I claim insurance if the accident is my fault?

Yes, if you have Comprehensive coverage, you can make a claim even if the accident is your fault. Your insurer will cover the cost of repairs to your own vehicle, subject to your policy terms and any excess/deductible.

However, please note:

Making a claim will reset your NCD to 0% at the next renewal
If the accident involves a third party, your insurer will also handle the third party claim on your behalf