What Modifications Affect Car Insurance?
Understanding what happens if you make modifications to your car, how it impacts car insurance and your ability to claim.
Modifying a car can be an exciting prospect, with many options and customisations possible. The process allows car enthusiasts to customise their vehicles to their liking, enhancing their aesthetic appeal and performance capabilities. With modifications, you can tailor your vehicle to offer a superior driving experience that mirrors your preferences and personality. However, as thrilling as this may be, it’s essential to approach it with a good understanding of how modifications affect car insurance.
This guide is designed to offer an in-depth overview of the implications that car modifications may have on your insurance coverage. It aims to equip you with the knowledge necessary to ensure that your efforts to improve your car do not inadvertently compromise your insurance protection. Being well-informed is paramount to avoid any negative impacts on your coverage, so you can enjoy your enhanced vehicle without worries about potential insurance issues.
Related Reading: Why Did My Car Fail Its MOT?
Understanding Car Modifications
Car modifications essentially refer to any changes or augmentations implemented on a vehicle that deviate from its original specifications provided by the manufacturer. These modifications can be made in many ways, catering to both functional and aesthetic aspects of the vehicle. For instance, aesthetic modifications may include elements such as a fresh paint job to alter the vehicle’s colour or the installation of spoilers to enhance the car’s visual appeal and aerodynamics.
On the other hand, performance-based modifications aim to upgrade the vehicle’s operational capabilities beyond what was initially intended by the manufacturer. This category of modifications can include features such as advanced braking systems for improved stopping power, or even the addition of a turbocharger to the engine, substantially boosting the car’s horsepower. These alterations not only amplify the vehicle’s performance but also heighten the overall driving experience.
Impact on Your Car Insurance
When deciding to modify your vehicle, it’s important to acknowledge that some changes can significantly influence your insurance policy. The fundamental principle guiding this impact is the fact that insurance providers establish your premium based on the perceived risk associated with insuring your vehicle. Consequently, any modifications that escalate this perceived risk could potentially lead to a corresponding increase in your insurance premium.
The risk can manifest in different ways. For instance, enhancing the car’s value through high-end modifications could mean that it would cost the insurance company more to replace or repair the vehicle in the event of an accident. Similarly, certain modifications might make your car more attractive to thieves, thus increasing the likelihood of theft. Furthermore, modifications designed to augment the vehicle’s performance could lead to a higher probability of accidents, especially if they result in increased speed or altered handling. All these factors contribute to an amplified risk profile, which could ultimately lead to a hike in your insurance premium.
Types of Car Modifications
Car modifications span a wide spectrum, varying in purpose, complexity, and impact. The following are some of the most prevalent types:
Changes designed to augment the power and speed of your vehicle. Examples of such modifications involve engine tuning, the addition of a turbocharger, or adjustments to the exhaust system. Each of these can significantly amplify the performance parameters of your car.
Involve alterations made primarily to enhance the vehicle’s visual appeal. This might include a custom paint job, the incorporation of spoilers, or the addition of new alloy wheels. These changes are typically more about personal taste and style rather than functional enhancement.
A category of modifications made to meet specific requirements. Examples include the installation of wheelchair ramps for drivers with mobility issues, or the addition of roof racks for those needing extra storage space. These modifications may not alter the performance or aesthetics significantly, but they certainly increase the vehicle’s usability for certain individuals.
Related Reading: How To Add Value To Your Car
List of Car Modifications that Affect Car Insurance
Here is a list of common car modifications that can significantly affect car insurance:
1. Engine Modifications: Any changes that increase horsepower, such as adding turbochargers or superchargers, can lead to a higher insurance premium because they often result in higher risk driving behaviour.
2. Body and Aesthetic Modifications: Custom paint jobs, body kits, spoilers, and other cosmetic changes can increase your car’s value and therefore, its insurance cost. These features might also increase the likelihood of theft.
3. Alloy Wheels: Upgraded wheels not only increase the vehicle’s value, leading to higher premiums, but also may be more attractive to thieves.
4. Suspension Changes: Lowering or otherwise changing your car’s suspension can affect its handling and therefore, its risk level in terms of accidents.
5. Tinted Windows: Dark window tints can potentially increase insurance premiums as some insurers view them as a driving hazard.
6. Exhaust System Changes: Upgrades to your vehicle’s exhaust system can increase its performance and value, resulting in higher insurance costs.
7. Brake Modifications: While upgrading brakes can improve safety, it also increases the vehicle’s value, potentially leading to a higher premium.
8. Transmission or Gearbox Changes: Any modification that enhances performance can increase premiums, and changes to your vehicle’s transmission system are no exception.
9. Sound System Upgrades: High-end sound systems increase the value of your car and may make it a more likely target for theft, both of which can result in higher premiums.
Remember, it’s crucial to inform your insurance provider of any modifications you make to your vehicle to ensure you’re fully covered.
List of Car Modifications that Don’t Affect Car Insurance
The following is a list of common car modifications that typically don’t affect car insurance premiums:
1. Interior Upgrades: Basic interior modifications such as reupholstering seats or adding floor mats usually don’t influence insurance rates, unless they significantly increase the car’s value.
2. Manufacturer Parts Replacement: Replacing existing car parts with manufacturer-approved parts typically doesn’t affect your insurance, as long as they don’t enhance performance or significantly increase the car’s value.
3. Roof Racks: Adding a roof rack for additional storage usually doesn’t affect your premium, unless it significantly alters the car’s height or weight.
4. GPS Systems: Adding an in-built GPS system typically won’t affect your insurance premium. However, portable GPS systems might raise theft concerns, so built-in options are often a safer choice from an insurance perspective.
5. Tyre Changes (Non-performance): If you’re simply replacing your tyres with similar, non-performance ones, it usually won’t influence your insurance rates.
6. Basic Audio System Upgrades: Replacing a standard stereo system with another non-extravagant one is usually unlikely to affect insurance premiums.
Remember, while these modifications might not generally affect insurance premiums, it’s always a good idea to inform your insurance provider about any changes you make to your vehicle to ensure you maintain full coverage.
Notifying Your Insurer
When undertaking car modifications, it’s imperative to keep your insurance provider in the loop. This is a critical step regardless of the extent or nature of the modifications being made. Your insurer should be aware of any and all changes made to your vehicle to ensure they have the most accurate and up-to-date information.
Even seemingly inconsequential modifications can have implications for your insurance coverage. Therefore, timely and comprehensive communication with your insurer is crucial. It helps ensure that your policy reflects your car’s current condition and value, preserving the adequacy and validity of your coverage.
Tips for Modifying Your Car Without Affecting Your Insurance
If you wish to modify your car without drastically increasing your insurance premium, there are several strategies you can employ:
Firstly, the type of modification you choose plays a significant role in how your insurance is affected. Some modifications are seen as less risky in the eyes of insurers. Consider opting for changes that increase safety, such as installing advanced braking systems, rather than those that largely boost the vehicle’s performance and, as a result, the associated risk.
Secondly, ensure that any modifications you undertake are professionally installed. This ensures compliance with safety standards and reduces the likelihood of mechanical failures, which might otherwise increase your insurance premium. Additionally, investing in modifications that enhance the security of your vehicle could be beneficial. For example, additions like alarm systems or immobilisers could potentially decrease your insurance cost, as they reduce the risk of theft.
Related Reading: New Car Tech in 2023: Revolutionary Innovations
Making Car Modifications and the Impact on Car Insurance FAQs
Q1: What effect does making modifications to my car have on my insurance premium?
Introducing modifications to your car can often lead to a change in your insurance premium. The insurer may see the modifications as an increased risk, either because they make the car more attractive to thieves, they could increase the likelihood of an accident, or they might affect the car’s overall value. These risks may drive up your insurance costs.
Q2: Are there specific car modifications that could increase my insurance costs?
Yes, some car enhancements such as engine tuning, adding turbochargers, altering the body kit, and installing high-value audio equipment could increase your insurance premium. These adjustments can increase the car’s performance risk and value, influencing your insurance rates.
Q3: How do insurers assess the impact of car modifications on my policy?
When assessing the effect of car modifications on your insurance policy, companies consider several factors. These include how the modification affects the car’s performance, its susceptibility to theft, and the increased cost to replace or repair modified parts. They also look at the type of modification, its purpose, and the overall value of the enhanced car.
Q4: Can car modifications potentially decrease my insurance costs?
Indeed, certain modifications might lower your insurance costs. Safety improvements like installing an approved alarm system, immobiliser, or tracking device can decrease your premium, as they reduce the likelihood of theft. However, not all modifications are viewed this way, so it’s always wise to consult with your insurance provider before making any changes.
Q5: Do I need to inform my insurance provider about every modification to my car?
Absolutely. Failure to disclose all modifications, even minor ones, could invalidate your car insurance. It’s always best to keep your insurer in the loop to avoid any complications or possible policy breaches.
Q6: What might happen if I fail to report my car modifications to my insurance provider?
If you don’t report modifications to your insurer and need to file a claim, your policy could be invalidated. This means that the insurer may refuse to cover your claim, leading to substantial out-of-pocket expenses for repairs or replacements.
Q7: How do I find car insurance providers who specialise in covering modified cars?
Finding insurance for a modified car can sometimes be challenging. However, there are providers that specialise in modified car insurance. A simple online search with the term “modified car insurance” should give you a list of potential providers to consider.
Q8: What factors should I consider before modifying my car?
Before you start modifying your car, consider how the changes will affect your insurance premium, car’s value, performance, and safety. Additionally, think about the cost of the modifications themselves. Ensure the alterations are legal and will not invalidate your car insurance.
Q9: Can any car modifications help improve my car’s value?
Yes, certain modifications like professional engine upgrades or enhancing the car’s aesthetics can improve the vehicle’s value. However, remember that while these modifications might increase your car’s resale value, they could also lead to a higher insurance premium.
Q10: Do all car modifications affect insurance premiums the same way?
No, not all modifications impact insurance premiums in the same manner. The effect varies depending on the nature and purpose of the modification. While performance-enhancing modifications may increase your premium, safety-related enhancements could potentially lower your insurance costs. It’s advisable to consult with your insurance provider before making any modifications.
Related Reading: Everything You Need To Know About Engine Remapping & Car Chipping
Need Gap Insurance?
There are a few different types of policy you can choose from when taking out your Gap Insurance cover with Click4Gap. These depend largely on how you intend to fund the purchase of your vehicle. So what car Gap Insurance is right for you?
If you paid cash for your vehicle, or paid a sizeable deposit, or if you financed it, Combined RTI Gap cover will pay out the shortfall between the cost of your vehicle and the market value at the point of claim, which is the amount your motor insurer will cover. This is cover that will protect you no matter if you use your vehicle for private use or for business.
If you leased your vehicle or it is under a contract hire agreement, Lease/Contract Hire Gap Insurance will cover you for the shortfall on your lease agreement, after your motor insurer settlement. If, for any reason, you change your vehicle within the first 90 days from the start date, we will also arrange to transfer your cover to your new vehicle without hassle or charge.