How does insurance change with modifications to your car?

10/02/12

If you’re a big car fan, and whether you’ve got a brand spanking new motor or a second hand car, then you might have thought about adding some modifications to your wheels. These might be some aesthetic differences or internal changes, but either way it’s essential that you notify your insurance provider because modifications – of whatever sort – can change your insurance premiums dramatically. And that’s something to think about before you start chopping and changing your used car to make it more individual!

What counts as a modification?

While we might think that modifications are only really modifications if it dramatically alters either the look or the performance of the car, some insurance companies will count even small changes, like factory fitted extras, as modifications. Mostly, anything that has been changed in or on a car after manufacture is counted as a modification – that means interior and mechanical changes, or changes to the exterior or paintwork.

Will modifications make premiums go up or down?

This one is tricky as it depends exactly on the modification itself. If you modify your car to improve its performance your premiums might go up because your car will be classed as a better performing model: for example, if you tune the engine, improve suspension or generally ramp up the engine you might incur extra charges. If you make aesthetic changes to the bodywork – like tinted windows, specific body colours, extra-large spoilers and the like – this can dramatically alter your premiums as it can make the car more attractive to thieves or vandals.

What happens if I claim on a modified car?

Firstly, bear in mind that your insurer is unlikely to provide you with the same souped up gear as you have added if you have to claim on your car. Instead, you are more likely to receive the standard component – even if you are paying more for your insurance premiums due to the modifications. Secondly, some insurance companies will be very averse to paying out for modified cars and so, before you even think about purchasing the modification, you should speak to your insurer. As these sorts of insurance vary so wildly from company to company, ask yourself whether your modification is worth the extra cost or even changing insurer to make sure you can get that aesthetic or internal change.

As with any change to your circumstances, you should notify your insurance provider as soon as you can to avoid any awkward situations further down the line.