Top 3 Mistakes Drivers Make When Filing Car Insurance Claims

Summary: Most rejected car insurance claims in Malaysia come down to three fixable mistakes: reporting the accident late, repairing at a non-panel workshop, and giving inaccurate or incomplete information. Lodge your police report within 24 hours, use a panel workshop where you can, and make sure your road tax, licence, and accident details are all accurate.

Filing a claim is stressful enough without the fear of a rejection letter. Most rejected claims in Malaysia aren’t bad luck — they’re procedural slip-ups you can avoid. Here are the top three.

1. Delayed Police Report

Under Section 52(2) of the Road Transport Act 1987, you must report a road accident at the nearest police station within 24 hours — this applies whether or not another party was involved. A police report is also a required document for both Own Damage and Third Party claims. Delaying it can get you compounded separately under the law, and may also cause your insurer to question the claim.

2. Using a Non-Panel Workshop

It’s tempting to go to the workshop you already trust. But if it isn’t on your insurer’s authorised panel, you’ll likely need to pay upfront and claim reimbursement — which can settle at a lower amount than what a panel workshop would be paid directly.

3. Inaccurate or Incomplete Information

Forgetting to disclose the actual driver, or not documenting the scene properly, can delay your claim or trigger extra verification. Claims can also be rejected outright if:

• Road tax had expired at the time of the accident, or

• The driver never held a valid licence, or held the wrong class of licence for the vehicle.

This is different from a licence that simply lapsed (expired but you’d held one before) — that’s a separate situation, so don’t assume the two are the same.

How to Avoid These Mistakes

• Snap first — photograph both vehicles, the surrounding area, and road conditions right after the incident.

• Report promptly — lodge your police report within 24 hours and follow your insurer’s claims procedure.

• Pick a provider with strong claims support — look for clear guidance and an authorised workshop panel to cut down friction.

Compare car insurance with PolicyStreet to find a plan with claims support that actually helps when you need it.

Frequently Asked Questions

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

It depends on the case. Minor claims are usually resolved within days; complex ones (total loss, disputed liability) can take longer. Submitting your police report, photos, and documents promptly speeds things up.

2. Can I claim if my driving licence had expired?

Generally yes, as long as your car insurance and road tax were active and valid at the time of the accident However, driving with an expired licence is a separate JPJ offence that can carry its own compound, regardless of whether your claim is approved.

3. Can I claim if my road tax had expired?

No. If road tax was expired at the time of the accident, the claim will typically be rejected. Keep your road tax active at all times.

4. What is a panel workshop, and do I have to use one?

A panel workshop is pre-approved by your insurer, so repair costs are usually settled directly with the workshop — faster and often cheaper for you. Using a non-panel workshop may mean paying upfront and claiming reimbursement at a lower settlement. PolicyStreet customers may use our Roadside Assistance page to explore the available panel workshops.

5. What happens to my NCD if I make a claim?

If you make an at-fault Own Damage claim, your NCD resets to 0% at renewal. If you weren’t at fault, a Third Party claim (or Own Damage Knock-for-Knock, where available) can protect your NCD instead.

6. Do I need a police report if no other vehicle or person was involved?

Yes. The 24-hour reporting requirement applies to any road accident, not just ones involving another party, and most insurers will still ask for the report to process an Own Damage claim.

7. If I wasn’t at fault, will my NCD still drop?

Not necessarily. Filing a Third Party claim against the at-fault driver’s insurer, instead of an Own Damage claim on your own policy, generally keeps your NCD intact.