The "Named Driver" vs. "All Driver" Policy
If you let your cousin drive your car to the store and they get into an accident, you might be in for a RM400 surprise. This is called the Compulsory Excess — a penalty that applies when an unnamed driver is behind the wheel.
Choosing between a Named Driver and an All Driver policy comes down to your household's logistics and how much financial risk you're comfortable with.
When the Excess Kicks In
In Malaysia, anyone who drives your car with your permission is considered an "Authorised Driver." But unless that person is also a Named Driver, the insurer can deduct RM400 as a compulsory excess from your claim settlement if they're involved in an accident.
Named Driver: the drivers listed on your policy. Simple and works well for couples.
All Driver: extends cover to anyone you authorise to drive. Useful for families with multiple adult children or drivers who come and go often.
Contractual Liability
If an unnamed driver is under 21 or holds a Learner (L) or Probationary (P) license, the RM400 excess is mandatory and cannot be waived unless you have specific "All Driver" coverage.
However, terms and conditions may differ between insurers. Always check with your chosen insurer before you proceed with renewal if this is important for you.
How PolicyStreet Can Be Super Helpful
Road tax discount: Drive+ membership includes up to RM120 discount off your road tax renewal (amount depends on your membership tier).
Save Kaw Kaw campaign: Customers can select the eligible promo code and cash vouchers to receive the car insurance discount depending on the total payables.
Battery replacement voucher: Drive+ includes an RM40 voucher for battery replacement — handy for when someone accidentally leaves the car lights on.
Compare multiple insurance quotes online with PolicyStreet, select Drive+ at checkout, and get maximum protection for your family car today.
Frequently Asked Questions:
1. Who counts as an Unnamed Driver?
Anyone not specifically listed on your policy. If they're in an accident, a RM400 compulsory excess usually applies — unless you have an All-Driver policy.
2. Do I need to name my spouse on my insurance?
If you don't have an All-Driver policy, yes. Otherwise, the RM400 excess can still apply to your spouse even though you're married.
3. Is a named driver the same as a second owner?
No. A named driver only has permission to drive the car under the insurance policy. They have no legal ownership of the vehicle itself.
4. Can I add a named driver mid-policy?
Yes, you can contact your insurer or agent to add a driver at any time, though a small endorsement fee may apply.
