Did you know that on average, there could be up to 50% of car owners who do not realise that when they sell their car, they can be eligible for a refund for any unused insurance premiums.
This is money that has been paid for coverage that you no longer need. So in this story we will explain some details on the process.
In what situation should I cancel my insurance?
There can be many reasons to cancel your insurance. There are some articles out there that even say you can cancel your insurance to switch insurance companies half way, but we don’t really recommend this because the first step to cancelling your insurance is cancelling your road tax and getting a refund for this is not so quick and straightforward as you will be dealing with a govt department.
Thus we only recommend cancelling your insurance if you are selling your car. We feel the effort to benefit is the highest for that reason.
How can I get a refund
If you renewed your insurance through an agent, typically you can just make a request to the agent and they will be able to process the refund for you as part of their service because they have earned a commission from you.
If you bought your insurance from a self-service system online, you will first have to deal with JPJ to cancel your road tax. You can download the JPJ K6 form to cancel the road tax.
Now you may ask why do you need to cancel the road tax? This is because having an insurance policy that is in force is a requirement to get road tax in the first place. Thus, for the policy to be cancelled, there must be proof that the road tax has been cancelled.
How much money can I be refunded from my insurance policy?
The amount that you can be eligible for a refund varies between insurance providers depending on their corporate policy. We have compiled how much refund you can be eligible for in the table below.
In general, refunds are calculated one of two ways – either via a tiered system, or pro-rated based on how many days are left in their policy coverage period.
What’s consistent is if more than 8 months of your policy has been used, there is no refund available.
We can help you process your insurance refund
Since launching a pilot initiative 2 months back, our insurance partner Carro Insurance have helped more than 200 customers cancel their car insurance policies and get back a total of RM 112,240 in premiums, an average refund of RM 460 per customer!
If you’ve recently sold your car or are planning to, contact us today to see if you’re eligible for a refund. We make the process quick and hassle-free for a fee of RM30.
It’s your money — let us help you reclaim it!
Click here to fill up a form to be contacted for a refund.
