Does Car Colour Affect Your Insurance Premium in Malaysia?
Summary: Your car’s colour does not affect your car insurance premium in Malaysia. Your premium is based on factors such as your car’s value, model, claims history, and NCD, while any colour change should still be declared to JPJ, and ideally, your insurer.
Many people have heard the saying that red cars cost more to insure because they are driven faster or get into more accidents. It is one of the most common car insurance myths, but is it actually true in Malaysia?
The short answer is no.
Insurance companies in Malaysia do not calculate your car insurance premium based on whether your car is red, black, white, or any other colour. Instead, insurers look at factors that reflect the vehicle’s risk and repair costs.
That said, if you repaint or wrap your car in a different colour, there are still important steps you should take with both JPJ and your insurer. Here’s everything you need to know.
Where Did This Red Car Myth Come From?
The belief that red cars cost more to insure has been around for decades.
One reason is that many sports cars and performance vehicles are available in bright colours such as red. Since these vehicles often have more powerful engines and higher repair costs, they naturally cost more to insure.
Over time, people began associating the colour with the higher premium instead of the type of vehicle.
A red sports car is generally more expensive to insure than a white hatchback, but that’s because of its higher value, performance, and repair costs, not because it is painted red.
If you compare two identical cars with the same specifications, same owner profile, and same insurance coverage, but in different colours, the insurance premium will generally be the same.
What Actually Affects Your Car Insurance Premium?
These are the details insurers actually consider when calculating your car insurance premium in Malaysia.
Vehicle Value (Sum Insured)
The sum insured represents your vehicle’s market value or agreed value, depending on your policy.
A more expensive vehicle typically costs more to repair or replace after an accident. As a result, the premium is generally higher.
Discover the math that decides your payout. Read our detailed guide on how your car insurance sum insured is calculated.
Make, Model, and Engine Capacity
Not all cars cost the same to insure. Insurers consider factors such as:
Vehicle make and model
Availability and cost of spare parts
Repair complexity
Engine capacity
Historical claims data for that model
Luxury vehicles, imported cars, and models with expensive components usually have higher insurance premiums.
Learn the most expensive car parts to replace after an accident.
Driver Profile
Your driving profile also plays a role in how insurers assess risk. Factors can include:
Driver’s age
Driving experience
Policyholder information
Previous car insurance history
Drivers with longer driving experience and a cleaner record are generally viewed as lower risk.
No Claim Discount (NCD)
One of the biggest ways to reduce your car insurance premiums is through your NCD.
If you do not make an own damage claim or nobody files a claim against you during your policy period, your NCD increases over time, allowing you to enjoy lower renewal premiums.
In Malaysia, NCD can reach up to 55% after six consecutive claim-free years.
Read our complete guide to learn how NCD works in Malaysia, how it grows over time, and how to maximise your savings.
Claims History
Your previous claims history can also affect future car insurance premiums.
Drivers who make frequent own damage claims may be viewed as presenting a higher insurance risk, which could influence future pricing depending on the insurer’s underwriting assessment.
Repair Costs
Modern vehicles often come with advanced technology such as:
ADAS sensors
Cameras
Radar systems
LED headlights
EV components
These parts can significantly increase repair costs after an accident, which is reflected in the insurance premium.
Should You Inform Your Insurer After Changing Your Car Colour?
Yes. Although changing your car’s colour typically does not change your insurance premium, it is still good practice to notify your insurer after repainting or wrapping your vehicle.
Keeping your insurer informed helps ensure that your policy records remain accurate. Updating your insurer can also:
Keep your vehicle information up to date
Avoid discrepancies during claims investigations
Ensure your policy details match your vehicle’s current appearance
For example, if your policy states that your vehicle is white but it has been repainted black, the difference could lead to additional questions during the claims process.
Fortunately, a cosmetic repaint alone generally does not affect your car insurance pricing.
Do You Need to Declare A Car Colour Change To JPJ?
Yes. If you change your vehicle’s colour permanently, whether through repainting or a full-body wrap, you must notify JPJ.
Under Section 12 of the Road Transport Act 1987, registered vehicle owners must notify JPJ whenever there is a change to the vehicle’s registered specifications, including its colour. Failure to do so is an offence under the act.
Here’s what you need to do:
Complete the JPJ K8 form (Notice of Change of Vehicle Details and Registered Owner).
Visit any JPJ branch.
Bring your MyKad and vehicle registration documents.
Your vehicle may be inspected before approval.
Submit the update within 7 days after completing the repainting or wrap.
If your car’s new colour is dual-toned, JPJ generally requires you to declare the dominant colour, meaning the colour covering the largest portion of the vehicle’s exterior.
Failing to update your vehicle’s colour can result in enforcement action by JPJ. More importantly, if your vehicle’s appearance differs from its official registration records, it could complicate insurance claims or vehicle verification later.
Interested in giving your car a new makeover? Learn in detail how car modifications can impact your car insurance.
Does Car Colour Affect Resale Value?
While colour does not affect your car insurance premium, it can influence how easily you sell your car.
Generally, neutral colours like white, silver, grey, and black remain the most popular in Malaysia because they appeal to a wider range of buyers.
Brighter or more unique colours can still attract interested buyers, especially for sports car collectors or enthusiasts, but they often appeal to a smaller market and could take longer to sell.
That said, a well-maintained vehicle with a complete service history usually has a much bigger impact on resale value than its paint colour.
Other Common Car Insurance Myths Malaysians Still Believe
The red car myth is just one of the many misconceptions surrounding car insurance in Malaysia. Some other common myths include:
Older cars do not need comprehensive insurance.
NCD follows the vehicle.
Car insurance automatically covers every modification made to your car.
The cheapest car insurance policy is always the best option.
Think you know everything about car insurance. Debunk common myths and learn the facts in our guide.
Renew Your Car Insurance Online With PolicyStreet
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You can also enjoy exclusive savings and rewards through our membership programme, Drive+, while our Customer Service is always ready to assist if you need help choosing the right coverage or completing your renewal.
Ready to renew your car insurance, get your free quote today.
Frequently Asked Questions
1. Does car colour affect car insurance premiums in Malaysia?
No, car colour does not affect your car insurance premium in Malaysia. Insurers calculate premiums based on factors such as your vehicle’s value, make, model, repair costs, claims history, and NCD.
2. Do red cars cost more to insure in Malaysia?
No, red cars do not automatically cost more to insure. The myth exists because many sports car happen to be red, but insurers assess the vehicle itself rather than its paint colour.
3. Do I need to inform my insurance company after changing my car's colour?
Yes. Although a colour change usually does not affect your car insurance premium, informing your insurer helps keep your policy information accurate and can prevent unnecessary complications during a claim.
4. Do I need to declare a car colour change to JPJ?
Yes. If you permanently change your vehicle’s colour through repainting or a full-body wrap, you should update JPJ by submitting the JPJ K8 form within 7 days after the work is completed.
5. What happens if I don't update my car's colour with JPJ?
Your vehicle registration details will no longer match the vehicle’s actual appearance. This could result in enforcement action by JPJ, and may complicate insurance claims or vehicle verification in the future.
6. Does repainting or wrapping my car affect my car insurance?
No, a cosmetic repaint or colour wrap does not usually change your car insurance premium. However, you should still notify both JPJ and your insurer to keep your records updated.
7. Does car colour affect a vehicle's resale value?
Yes, but only to a certain extent. Neutral colours such as white, silver, grey, and black generally appeal to more buyers, while unique colours can take longer to sell. However, overall condition and maintenance history are more important.
8. What factors actually determine my car insurance premium in Malaysia?
Your premium is typically determined by your vehicle’s sum insured, make and model, engine capacity, repair costs, driver profile, claims history, selected coverage and add-ons, as well as NCD.
