Most car enthusiasts love to level up their cars with extra modifications. Sure, there is nothing wrong with their car as everything is still new and works properly.
However, they have made plans at some point to modify their car. One day, they plan to pimp up their ride with new turbo engines. Or maybe alter the car rims to the new custom ones.
If you’re trying to improve an aspect or two by introducing new components, it’s not essentially a bad thing. However, you have to be aware that these modifications may affect your car insurance premium.
Read on as we will explain.
What is car modification?
Car modification helps in making your ride stand apart from the other vehicles.
As the term suggests, modifications are changes made to a vehicle to alter the appearance or performance or both.
Modifications could be major or minor changes for aesthetic purposes or to enhance the car’s performance.
Different types of car modifications
There are several types of modification:
1. Performance
Performance modifications refer to upgrading the car’s performance. Examples are upgrades of the brakes, transmission, suspension, turbocharger, etc.
2. Functional
Functional modifications mean changes or adding certain functions to the vehicle. Examples are air conditioning systems, navigation systems, parking sensors, and additional car lights.
3. Aesthetic
Aesthetic modifications refer to improving the appearance of the vehicle. Examples are as below:
- Front and rear bumpers
- Rooftop vents
- Auto body paint
- Back bumper reflector lights
- Tinted windows
Depending on the modification, some enhance your vehicle’s performance. However, it is only if they’re done legally. They don’t always come out correctly. Unlawful or prohibited modifications can adversely affect your car’s performance.
Vehicle modifications following the Road Transport Department (JPJ)standards
Unlawful car modification can cause you a hefty fine by the authorities. Car modifications are subject to adherence to the regulation set by the Road Transport Department (JPJ).
According to Section 12 of the Road Transport Act 1987, modifications made to any vehicles before or after registration must be done legally.
Some modifications can be performed without JPJ’s approval. However, they must follow the specified guidelines. You may refer to this article for a detailed guide to car modification based on the JPJ standards: JPJ Guidelines for Vehicle Modifications.
How does car modification affect insurance?
Car insurance companies consider a car modified when you replace, add, or remove a vehicle’s parts or systems that weren’t in the manufacturer’s standard specification.
But how will it affect your insurance if you want to mod your car?
For example, if a car modification results in a compromise in the car’s security, then the car’s vulnerability to getting stolen increases. Thus, the car insurance company will charge you a higher premium than it would have charged you before the modification.
Update your car insurance policy to cover these if you have modified your vehicle.
What happens if you don’t disclose car modifications to your insurer?
Your insurance only covers the standard, factory-fitted car accessories.
In the event of a car accident or theft, your insurance will replace or compensate for the accessories, provided that the accessories are standard, factory-fitted tools. You will need comprehensive insurance in order to get the accessories replacement or compensation.
In other words, if your car accessories are not the standard accessories that come with your car, your insurance won’t cover or compensate you if the non-standard accessories are damaged or stolen.
Therefore, you must disclose the modifications done to your car at the time of policy purchase. Please note that any non-disclosure can result in a claim rejection at the time of a claim settlement.
If you are unsure, it is best to clarify with your insurer.
Consider before you modify your car
You must not want anything to go wrong with your car upon modification. It is indeed would be a nightmare for all car owners. You are spending thousands of ringgit to modify your car however, it affects your car’s performance.
Therefore, we advise you to refer the experts so you don’t ruin your car. Get the necessary add-on coverage to ensure your car receives sufficient protection.
Bjak is one of Malaysia’s biggest insurance comparison sites, with more than 10 insurance brands to choose from. Get your free insurance quote at Bjak today!
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