Vehicle Modification Insurance In Malaysia: What Drivers Should Know
Vehicle modifications not only can improve your car’s appearance, comfort, and performance — they also affect your insurance coverage.
In Malaysia, certain modifications should be disclosed to your insurer because they can influence risk assessment, claims evaluation, and repair costs. Failing to declare modifications can complicate the claims process, especially if the modification contributes to the damage or loss.
Here’s what drivers should know before modifying their vehicles.
What Is Considered a Vehicle Modification?
A vehicle modification refers to changes made to a car that differ from the manufacturer’s original specifications. In Malaysia, car modifications must be reported and approved by the Road Transport Department (JPJ) to remain legal and insurable.
Common examples of car modification according to JPJ’s guideline include:
Aerodynamic accessories
Door visors
Bumpers & protecting guards
Rims & tires
Roof modifications
Roof racks & cargo carrying
Gearbox replacement
Canopies
Off-road accessories
Spotlights
Some modifications are cosmetic, while others potentially affect vehicle performance or safety.
Why Do Insurers Need to Know About Modifications?
Insurance premiums are calculated based on risk. Certain modifications can increase repair and replacement part costs, as well as theft and accident risks.
For this reason, some insurers require policyholders to declare modifications before coverage is issued or renewed.
Important: Undeclared modifications can affect claims assessment depending on the insurer’s review and the circumstances of the accident.
How Vehicle Modifications Affect Insurance Claims
When a claim is submitted, insurers assess the condition of the vehicle and the cause of the damage.
If modifications are involved, the insurer will evaluate:
Whether the modification contributed to the incident
Whether the modified parts were declared
Whether replacement costs differ from standard factory parts
In some situations, modified accessories or aftermarket parts might not be compensated under a standard policy unless additional coverage or endorsements apply, therefore, car owners are recommended to get direct insurer’s consultation.
For our customers, PolicyStreet offers self-serve endorsements at car.policystreet.com/endorsement for eligible changes on your car details.
Do You Need to Declare Vehicle Modifications?
Yes. Drivers are generally encouraged to inform their insurer about significant vehicle modifications.
This helps ensure an accurate policy information, proper risk assessment, and clearer claims processing. Car drivers can also receive advise whether the modification affects coverage, additional protection is needed, or premium adjustments apply before renewing their car insurance.
Tips Before Modifying Your Vehicle
Before making modifications, drivers should consider the following:
Inform your insurer before renewal or policy purchase
Keep receipts and documentation for modified parts
Use reputable workshops for installations
Ensure modifications receive JPJ approval
Confirm whether additional coverage is required
Taking these steps early help reduce complications during claims.
Offset Higher Premiums With Exclusive Promotions
Before renewing your car insurance, take advantage of available payment promotions and membership benefits through PolicyStreet. As of May 2026, selected offers include Atome 5% OFF, SPayLater 10% OFF, or Ahapay RM30 OFF promotions, subject to campaign terms, eligibility, and validity periods.
While vehicle modifications can improve your driving experience and personalise your car, they can also affect your insurance coverage and claims process. Before making any modifications, it is important to understand how the changes could impact your policy and whether disclosure to your insurer is required.
Not sure whether your modification affects coverage? Contact PolicyStreet at customerservice@policystreet.com or WhatsApp at 018-282 2320 for clarification before renewing your policy.
You can also compare and renew your coverage through PolicyStreet.
Frequently Asked Questions
Will my insurance cover aftermarket parts?
Specific coverage for modified parts depends on the insurer’s policy terms. Certain aftermarket or modified parts require additional coverage or declaration.
Can undeclared modifications affect my claim?
Undeclared modifications could result in claim rejection or partial denial, thus it is recommended for drivers to declare modifications before renewing to avoid complications.
Will modifications increase my insurance premium?
Depends. Whether modifications affect your PolicyStreet premium depends on the specific modification and your insurer's assessment. Contact PolicyStreet for exact premium impact.
Do cosmetic modifications need to be declared?
Drivers are encouraged to check with their insurer, as requirements vary depending on the type of modification. For PolicyStreet customers, contact customerservice@policystreet.com or WhatsApp 018-282 2320 to confirm which cosmetic modifications must be declared.
