Car modifications can transform a vehicle’s appearance, performance, and functionality and impact insurance costs. Understanding how modifications influence premiums helps you make informed decisions when considering aesthetic upgrades or performance enhancements.
Below, we explore which modifications most affect insurance costs, how insurers assess modified vehicles, and steps to secure the most suitable cover while keeping premiums manageable.
How Insurers View Vehicle Modifications
Insurance providers assess risk factors differently when vehicles deviate from factory specifications. Modifications alter a vehicle’s characteristics, potentially changing its risk profile. Insurers primarily concern themselves with changes affecting accident likelihood, repair costs, or theft risk. Performance enhancements worry insurers as they may increase accident probability, while aesthetic modifications that attract thieves also raise risk profiles.
Some insurers struggle to accurately assess modified vehicles because their pricing models are based on factory specifications.
Types of Modifications and How They Impact Premiums
Different modifications affect insurance costs to varying degrees, with some having a bigger impact while others barely influence premiums:
1. Performance Modifications
- Engine tuning and power increases typically cause the most significant premium rises. Increasing bhp through ECU remapping, turbocharging, or supercharger addition can raise premiums as they fundamentally change your vehicle’s performance characteristics.
- Exhaust system modifications vary in impact depending on their purpose. Performance exhausts typically raise premiums, while those focused solely on sound might have minimal impact if properly declared.
- Suspension alterations, including lowering kits and performance dampers, often increase premiums due to concerns about handling changes and reduced ground clearance, which can cause potential damage.
- Brake upgrades present an interesting case. Minor improvements might not affect premiums, while brake system overhauls could increase costs despite their safety benefits.
2. Aesthetic Modifications
- Body kits and styling changes carry varying premium impacts. Non-performance cosmetic modifications typically have minimal effects unless they significantly increase vehicle value or repair costs.
- Custom paint jobs and wraps can increase premiums based on replacement cost and theft attractiveness. Eye-catching finishes might make vehicles more appealing to thieves and vandals.
- Window tints beyond legal limits can invalidate insurance entirely, while legal tints typically have minimal premium impact when properly declared.
- Aftermarket wheels increase premiums due to higher replacement costs and theft risk, as thieves frequently target expensive alloy wheels.
3. Functional Modifications
- Tow bars have negligible premium impact and may even be viewed positively by some insurers. Roof racks and storage boxes usually cause minimal increases when removable and properly declared.
- LPG conversions present mixed implications. While they reduce fuel costs, they increase vehicle complexity and repair costs after accidents.
- Parking sensors and reversing cameras often have neutral or positive premium effects as they reduce the likelihood of minor damage claims.
Disclosing Modifications to Your Insurer
Modifications must be declared both when taking out new policies and when modifying existing vehicles. Failure to disclose modifications, even minor ones, can invalidate your policy entirely. Most insurers require notification before modifications are made.
When declaring modifications, provide details, including the exact nature of changes, professional installation certificates where applicable, before-and-after photographs, and revised vehicle valuation if the vehicle has significantly changed. Keep all modification documentation in a secure file for insurance purposes. These records prove invaluable during claims processes.
How to Minimise the Premium Impact of Modifications
The following strategies can help reduce insurance cost increases for modified vehicles:
- Choose insurer-approved modifications that meet recognised quality standards
- Enhance security features beyond standard requirements
- Join recognised owners’ clubs that negotiate group insurance schemes
- Install dash cams and telematics that demonstrate responsible driving
- Obtain professional installation certificates for all modifications
These approaches will not eliminate premium increases entirely but can greatly reduce their impact.
Modifications That May Reduce Your Premium
Not all modifications increase insurance costs. Some changes can actually lower your premiums:
- Security upgrades like advanced immobilisers and tracking systems
- Parking aids, including sensors and cameras
- Advanced dash cams that provide evidence during claims
- Safety-focused handling improvements
- Winter tyres (when declared as seasonal alterations)
These positive modifications demonstrate responsible ownership and risk reduction.
Support for Modified Car Insurance
Navigating modified car insurance requires specialist knowledge that most general providers lack. We understand the passion behind vehicle modifications and offer tailored cover that recognises the value and nature of your customisations. Contact us today to discuss your vehicle’s modifications and insurance needs.
