Car Modification & Insurance Claims in Malaysia

Which mods affect your insurance, what you must declare, and how to avoid having your policy voided.

Critical: Undeclared modifications = voided policy

If you modify your car and don't tell your insurer, they can reject any claim — even if the modification had nothing to do with the accident. Always declare modifications in writing.

Modifications That Affect Insurance — The Complete Breakdown

Modification TypeMust Declare?Premium ImpactJPJ Approval Needed?
Engine swap / upgradeYes — mandatory+30-60%Yes
Turbo / supercharger installYes — mandatory+25-50%Yes
ECU remap / performance chipYes — mandatory+15-30%Sometimes
Exhaust system (full)Yes — mandatory+10-20%Yes (if noisy)
Suspension / coiloversYes+10-20%Depends on height
Body kit / widebodyYes+10-25%Depends on extent
Alloy wheels (different size)Yes+5-10%Yes (if non-standard)
Carbon fiber panelsYes+15-25%No
Roll cageYes — mandatory+20-40%Yes
Paint / wrap (different color)Yes+5-10%Yes (color change)
Tinted windowsNo (if within legal %) 0%Must meet JPJ spec
Dashcam / audio systemNo0%No
Interior trim / seatsSometimes0-5%No

What Happens If You Don't Declare Modifications

Accident claim — non-modified part damaged

Claim may be rejected if insurer discovers undeclared mods

Even if the accident only damaged a stock fender, the insurer can void the entire claim because the policy was based on false information.

Theft claim — modified car stolen

Claim almost certainly rejected

Modified cars are higher theft risk. Undeclared mods give insurer a strong reason to reject. You lose the car AND get no payout.

Police roadblock — illegal mods found

JPJ fine + insurance flagged

JPJ can issue fines for illegal mods. Your insurer may be notified and could cancel or refuse to renew your policy.

At-fault accident — third party injured

Massive personal liability

If your policy is voided due to undeclared mods, you're personally liable for ALL damages — to your car, the other car, and any injuries. This could be RM 100,000+.

How to Properly Declare Modifications

  1. 1

    Get JPJ approval first (if required)

    Major modifications (engine, turbo, body structure) need JPJ endorsement. Get this BEFORE telling your insurer.

  2. 2

    List all modifications in writing

    Create a detailed list: what was modified, parts used (brand/model), who did the installation, and approximate cost of each modification.

  3. 3

    Send the list to your insurer

    Email or submit the modification list to your insurer. Ask for written confirmation that the mods are accepted and any premium increase.

  4. 4

    Pay any additional premium

    Your insurer will calculate the additional risk and invoice you. Pay promptly to keep coverage active.

  5. 5

    Keep documentation

    Keep all receipts, JPJ approval letters, insurer acceptance letters, and modification invoices. You'll need these if you ever make a claim.

Insurers That Accept Modified Cars

Not all insurers are modification-friendly. Here are the ones that generally accept modified cars:

Allianz

Accepts most mods if declared

Premium increase 15-40%. Good for performance mods.

Zurich

Flexible with cosmetic mods

Body kits and paint changes accepted. Performance mods need case-by-case review.

Tokio Marine

Covers declared mods

Higher premium but excellent claims service for modified cars.

Etiqa

Limited modification acceptance

Best for minor mods (wheels, suspension). Major engine mods may be declined.

Need modified car insurance?

Get quotes from insurers that accept modified cars. Describe your mods and we'll connect you.

Get Quotes for Modified Car

Important Disclaimer

This guide provides general information. Modification acceptance, premium increases, and coverage terms vary by insurer. Always declare modifications in writing and obtain written confirmation from your insurer. JPJ regulations on vehicle modifications are subject to change.