Introduction
Many car owners love modifying their cars — from changing the engine to upgrading parts for better looks or performance. But these changes can affect your car insurance. If you don’t report them, your premiums may rise later, your coverage may shrink, or your claims could be rejected.
This guide explains how engine swaps and modifications influence insurance policies and how BJAK helps you update them easily.
Impact of Engine Swaps
1. Higher Premiums
A bigger or more powerful engine means higher risk, and insurers usually charge more.
2. Limited Coverage
Some insurance companies may refuse to cover cars with unreported engine swaps.
3. Invalid Claims
If your engine has been changed but not declared, claims for accidents or damages might be denied.
BJAK Tip:
Always recheck your policy after an engine swap with insurers like Allianz, Takaful Malaysia, or P&O Insurance. This helps ensure your No Claim Discount (NCD) and roadtax remain valid.
Impact of Other Modifications
Cosmetic Modifications
Changes like lights, rims, or body kits usually don’t affect your premium. But they still need to be declared so your insurance record stays accurate.
Performance Modifications
Upgrades like turbo systems, ECU tuning, or custom suspension can raise premiums or limit what your insurer will cover.
You can use the BJAK Calculator to estimate your new premium after making changes. It gives you a clearer view of how much extra you might pay.
How to Update Your Policy via BJAK
Updating your policy is simple:
- Ensure that policy is purchased through BJAK.
- Request endorsement for vehicle information update.
- Provide required documents regarding endorsement & wait patiently.
- Policy updated by proof of endorsement slip
Doing this keeps your coverage valid and prevents issues during claims.
Conclusion
Engine swaps and car modifications can affect insurance in many ways — from higher premiums to denied claims. Always declare any changes to stay protected.
With BJAK, you can easily check, compare, and update your policy. It ensures your premiums, NCD, and roadtax remain accurate and legally valid.
Read More:
BJAK Bengkel: Car Service Now, Pay Later
BJAK Bengkel: Car Service with Instalment Plan from RM10/Month
