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.
1. Unnamed Drivers
Claims can get rejected if the driver isn’t listed.
Avoid: Add regular drivers.
2. Driver Age Limits
Policies often exclude very young drivers.
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 non e-hailing policy risk getting their car insurance claims voided by the insurer.
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 promo periods, you can:
Save on premiums
Review add-ons like special perils
Confirm driver eligibility
Review your coverage here: Check your policy now at PolicyStreet
Renewal Promos as Coverage Checkpoint
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. Customers who purchase Drive+ are entitled to the following benefits:
Road tax discount - Customer can enjoy up to 100% off their road tax, depending on the tier selected
EPP/Atome discount - Standard and Premium members only
Free road tax handling fee - Handling fees for both digital and physical road tax renewals are waived
Loyalty rewards up to RM80
Prioritised assistance for car insurance renewals
Step-by-step guidance for claim submissions
Understanding exclusions helps you avoid claim surprises and choose better protection. A quick policy review during renewal can save both money and stress.
For more details, kindly visit https://www.policystreet.com.my/tnc
Frequently Asked Questions
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.
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 will get rejected by the insurer. This is why it is important to ensure your road tax is always kept active and up to date.
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 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
Click here for a more detailed guide on how to file a car insurance claim.
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.
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
