There are so many factors that affect auto insurance, and car modifications are a big part of them. That is why, when you apply for an auto policy, the insurer will ask if your vehicle has been modified.
When an insurance company sets the price of policies, all factors that affect the car’s value or increase the chances of it being involved in an accident or stolen are taken into account.
The main idea is not to charge you; it is to make sure that every area of your modified car is covered against unexpected risks.
Unless you have met with a specialist insurance broker, modifications done to your car can greatly affect your premium. However, regardless of the insurer or broker you meet with, it is advisable that you be completely candid about your vehicle’s modifications.
This article is a guide to how modifications can affect your car insurance. Read to the end to know what needs to be declared and what types of modifications do not affect your premiums.
What is a Car Modification?
Modifications are changes you make to your vehicle that change it from the manufacturer’s standard settings. They tend to fall into two categories: cosmetic or performance.
Cosmetic car modifications include body kit amendments, tinted windows, sunroof installation, specialized paintwork, go-faster stripes, and speaker systems.
Performance includes altering your suspension, increasing horsepower, re-engineering your engine, changing the wheels, turbo upgrades, handling modifications, fuel upgrades, transmission modifications, lowering suspension, and intake and exhaust upgrades.
Modifications that may affect your Car Insurance
Keep in mind that any vehicle modification you make may affect your auto policy in some ways.
Once a vehicle has left the factory, any changes you make to it are considered modifications. And according to the law, you should inform your insurer of any changes you make. If you do not, it can cause your policy to be invalidated. This means you will be driving illegally without valid coverage.
Mechanical modifications
Modifying your engine to make it more efficient and other vehicle mechanics, such as the exhaust system, can increase the vehicle’s performance.
This means it is likely to increase your insurance premium and must be declared. For example, making your exhaust system larger could mean you will pay more for your policy.
Also, installing a turbo, supercharger, or high-performance brakes is likely to increase your policy cost. Failing to declare this addition to your insurer could void your insurance.
Changing tyres and wheels
Changing your car’s wheels can change how it handles and may also increase its value.
If you add alloy wheels or wider tires, you should let your insurance provider know, as this could affect your premium.
On the other hand, using winter tires won’t increase your premiums. Most insurers understand that winter tires improve handling in difficult conditions.
Several years ago, many companies agreed not to increase premiums for cars with winter tires. If the tyres are approved by the manufacturer of the vehicle, they’re even less likely to affect your premium.
Alloy wheels, often chosen when purchasing a new car, can also be added later. They are stronger and lighter than steel wheels. Reducing the load on the suspension and making steering easier. This improves handling.
Also, check if alloy wheel theft is very popular in your area, as this could impact your insurance costs.
Non-performance-related wheel modifications, like novelty hubcaps that spin or light up, probably will not impact your premium. But they should still be reported to your insurer due to the potential theft risk.
Paint work changes, decals, and stickers
You may be shocked to know that stickers and decals are considered car modifications by some insurers.
If you choose to have your vehicle custom painted for a huge price, this could have a great effect as it can raise your car’s value. And this makes it more attractive to thieves.
Also, insurance companies will associate certain decals or paints with drivers who are likely to make more claims. This means you may just be making the wrong choice by opting for a new paint job.
Lightning
Many modifications to lightning will not affect your premiums, but some may cause issues. The first one is LED strips on your car’s bottom.
When these are mixed with theft, irresponsible driving, theft, and a history of claims, the insurer is likely to increase the cost.
Also, keep in mind that flashing under-car lights and LED headlights are illegal and may invalidate your policy.
Car seats
Changing your car seats can impact your policy in many ways. If you upgrade or reupholster them, you are making the vehicle more valuable, meaning your insurance costs will rise.
If you replace the seats with alternatives that are inexpensive but do not comply with safety standards, the premiums are likely to increase.
Whatever changes you make to the seats, you should declare them. Also, changes to the pedals and steering wheels are considered to be key modifications that you should report to the carrier.
Body kits
Typically, a complete boy’s kit isn’t made with safety in mind. Sporty bumpers on cars could shatter with the smallest impact. Side skirts can be very dangerous on uneven roads. Car modifications like this could force the insurer to increase their premiums.
However, a modified auto insurance policy is unlikely to be impacted unless the car value has increased dramatically.
Cosmetic modifications such as valances, flared wings, and splitters can have an impact on your policy.
Some car exterior modifications may be very popular, but that does not mean they are legal. So it is advisable to check before making any changes.
Nitrous oxide systems
Although these systems are not illegal, they can increase your premium. This means they are very expensive additions to your vehicle.
However, if you do not inform your insurer about them, they could be considered illegal. In addition, these systems can be very dangerous when not installed properly, as they raise cylinder pressure.
What Modifications Will not Negatively Affect Car Insurance?
Adding security features to your vehicle, such as extra locks or immobilizers, won’t increase your premium. In fact, they might help you lower it by reducing the risk of theft or accidents.
Winter tires are another modification that won’t raise your policy costs. Carriers approve because they improve your car’s handling in tough conditions.
Also, engine downsizing, adding high-performance brakes, upgrades to suspension, adding a sway bar, and adding a water-cooling system won’t affect your car insurance premiums.
Although these modifications might not increase your insurance costs, it is advisable that you still inform your provider. This ensures they can assess your policy and charge you your policy amount accurately.
