Yes, car insurance is mandatory for all car owners. In Malaysia, car insurance and road tax go hand in hand. Just as you can’t legally drive without a valid road tax, you are also required to possess car insurance to be on the road. If you do not own car insurance, you won’t be able to renew your vehicle’s road tax from the Road Transport Department (JPJ) Malaysia. And without your road tax, you won’t be allowed to drive on Malaysian roads legally. If you get caught without a valid road tax, you could receive a fine of up to RM3,000 under Section 14(4) of the Road Transport Act (RTA) 1987.