Do I Need to Declare Car Modifications to My Insurer?

Yes, you should tell your insurer about relevant car modifications and check whether they are covered by your policy. Changes to your car can affect its value, repair costs and insurance risk. If you do not disclose them, your insurer may question or dispute a claim, depending on the circumstances and your policy terms.

Modifications are not just about making your car look different. Sport rims, body kits, lowered suspension, upgraded sound systems and engine upgrades may also affect your insurance. If you plan to modify your car, or if it has already been modified, check with your insurer before assuming the changes are covered.

Which Car Modifications Should You Declare?

It depends on the type of modification and your insurer’s requirements. Some changes add value to your car, while others affect its performance or safety.

Type of modification	What you should check
Sport rims and non-standard tyres	Whether they are covered and whether their value is included in your policy.
Body kits and spoilers	Whether your insurer needs to know about these changes and approve them.
Upgraded sound systems and other accessories	Whether you need to declare them or buy extra cover.
Lowered or modified suspension	Whether the changes are accepted by your insurer.
Engine upgrades and performance modifications	Whether the insurer allows them and requires supporting documents.
Car wraps and colour changes	Whether you need to inform your insurer or update the relevant vehicle records.

This table is a general guide. The requirements may differ depending on your policy and the changes made to your car.

Want to know whether your accessories are covered? Read BJAK’s guide to Car Accessories and Modifications: Are They Covered?.

What Happens If You Do Not Declare Your Modifications?

If you do not tell your insurer about relevant modifications, the details in your policy may no longer match your car’s actual condition. This could affect how a claim is assessed, especially if the changes are related to the accident or affect the risk covered by your policy.

Depending on the situation, you may face the following issues:

• Your claim may be disputed or rejected. Your insurer may question the claim or decline it if the policy terms and circumstances allow.
• Your accessories may not be covered. Extra accessories may fall outside your policy if they were not declared or included in the cover.
• Your insurance price or terms may change. Your insurer may charge more, set additional conditions or refuse to cover certain modifications.
• You may need to provide more documents. These could include receipts, installation invoices, photographs or details of the modifications.

However, this does not mean every claim involving a modified car will be rejected. The outcome depends on the type of modification, what you disclosed, its connection to the incident and the terms of your policy.

For general guidance on motor insurance and disclosure, refer to Bank Negara Malaysia’s Motor Insurance and Takaful FAQ.

Does Comprehensive Insurance Cover Modified Cars?

Comprehensive car insurance covers your vehicle against specified insured events, subject to the policy terms and exclusions. However, comprehensive cover does not automatically protect every aftermarket accessory or modification.

Situation	What you need to know
Your modified car is involved in an accident	The insurer will assess the claim based on your policy, the accident and the information provided.
Your upgraded rims or accessories are damaged	Check whether these items were declared and included in your cover.
Additional accessories are stolen	Accessories not fitted by the manufacturer may need to be declared or insured separately.
You have upgraded your engine	Your insurer may reassess the risk and decide whether the modification is acceptable.

If you have expensive accessories, do not assume their full value is included in your sum insured. Check your policy and ask your insurer to confirm in writing what is covered and whether any limits apply.

How Do You Declare Car Modifications?

The easiest way to avoid confusion is to contact your insurer or agent before making changes to your car. If the modifications have already been installed, inform your insurer as soon as possible and ask whether your policy needs to be updated.

Here is what you can do:

1. List the modifications. Write down the parts or accessories you have added or changed.
2. Keep your documents. Save purchase receipts, installation invoices, specifications and photographs, where available.
3. Contact your insurer. Explain the changes and ask whether they need to be declared or covered separately.
4. Get written confirmation. Check whether the modifications are accepted and covered, including any conditions or limits.
5. Review your policy. Make sure you understand any changes to your coverage, sum insured, price or policy terms.

Do not wait until renewal if you modify your car while your policy is still active. Ask your insurer whether you need to update your policy during the current coverage period.

Do Car Modifications Require JPJ Approval?

Insurance requirements and JPJ rules are separate matters. Declaring a modification to your insurer does not automatically make it legal for road use. Likewise, a modification that meets JPJ requirements is not automatically covered by your insurance.

Some changes may be allowed if they meet the relevant guidelines, while others may require approval or inspection.

Before making changes, check JPJ’s official Private and Commercial Vehicle Modification Guide. If you are unsure whether a modification is allowed, confirm the requirements with JPJ first.

Will Declaring Modifications Increase Your Car Insurance Price?

Not necessarily. Your insurance price and policy terms may change depending on the type of modification, the added value, repair costs and the risk involved.

Factor	Possible effect
Expensive accessories	You may need a higher insured amount or additional cover.
Engine or performance upgrades	Your insurer may reassess the risk and adjust the price or terms.
Accessories not covered by your existing policy	You may need to pay extra for additional protection.
Modifications your insurer does not accept	The insurer may set conditions or decline to cover those changes.

Before agreeing to a revised price, ask your insurer what the policy covers and whether any limits or exclusions apply. You can also compare car insurance through BJAK to explore the options available for your vehicle.

Conclusion

If you modify your car, tell your insurer about relevant changes and confirm whether they are accepted and covered. This can help prevent misunderstandings about your accessories, insured value and claims after an accident or theft.

Before installing new parts or renewing your policy, check your insurance terms, keep your receipts and make sure the modifications comply with JPJ requirements.