Modified Cars Versus Insurance Costs

September 7, 2008

Modified Cars versus Insurance Costs

If you are planning on making any modifications to your car, no matter how minor, then you could possibly increase the price of your insurance premium.

What do insurance companies consider to be a modification?
Insurance companies will deem a car to be modified if anything has been added that alters its original factory configuration. So, anything that you add, be it alloy wheels, body kit, tinted windows etc. will mean that your car is no longer considered a standard model. Also, any modifications to the engine, suspension, exhaust system etc. are changes that will increase performance. These will definitely increase your premiums.

Some car insurance companies don’t insure modified cars, as they see them as too much of a risk. So if you have a heavily modified vehicle you may have to seek out a specialist insurance company.

What about my alloy wheels?
If your car left the factory without alloy wheels, then adding them will be considered to be modification. Even though they don’t provide an increase in performance, they do increase the cars value, so expect your premium to be adjusted accordingly when the car insurance company take the additional value into account.

How much extra will I be charged?
There is no definite answer to this question, as each insurance company will follow their own guidelines when calculating their car insurance quotes. Therefore, it’s a good idea to check with your insurance company first, before you go ahead with any vehicle alterations.

It’s also worth remembering that any modification that increases the cars value is likely to increase the price of your premium.

Legal Obligations
You are legally obliged to inform your insurer of any modifications made to your vehicle. If your insurers discover that any changes have been made to the vehicle, without them being prior informed then your policy could be left null and void.

And finally
If you’re looking for a modification that can actually help reduce your insurance premium, then go for a security upgrade. A Thatcham approved device significantly enhances vehicle security, which can mean insurance companies lowering the price of your premium.

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