How car modifications affect your insurance

If you're considering jazzing up your car, you might have already scoured the market to check the cost of parts and labour. And while you might think alloy wheels, spoilers or other changes are worth every penny, your insurance provider may not. 

In this article, we'll explore what types of car modifications (or mods) can hike up the cost of your car insurance.

We’ll also explore whether it's possible to modify your car without paying more to cover it and whether they’ll always increase the price of your insurance, and if you really need to tell your insurer about any changes to your car.

You should always tell your insurer about any changes you're planning to make, whether they’re cosmetic, performance-boosting or something else. This will allow them to check that they’re still willing to cover you, or that the price you're paying reflects your car’s risk level. You may also have your policy cancelled or have any claims denied if you don't tell your insurer what changes you're planning to make to your car, or what changes you've already made.

Car modifications can impact your insurance in various ways, but not all changes will lead to higher premiums. Before making any changes to your vehicle, it's smart to understand how they might affect your insurance and discuss them with your insurance provider to ensure you have the right cover.

First things first, what are vehicle modifications? If you’ve ever seen a car with shiny rims, blacked-out windows or any other feature that looks like it belongs on a racetrack, this is what we're talking about. These changes aim to improve the vehicle's performance or appearance. It's not all about just looking like a race car either. Some changes may not be immediately obvious, such as remapping engine control units, or fitting adjustable rate shocks. Others may not affect performance such as vinyl wrap or sign writing but all of these would be classed as modifications & need disclosing to your insurer. And while they might impress your friends or neighbours, some of them can be illegal, so don't expect the same reaction from the police.

Here’s how and why modifications to your vehicle might increase how much you pay to cover it. You should always tell your insurer when you make any modifications to your vehicle.

Added value: Since some modifications can make your car more valuable, your insurer may charge you more to reflect the added value. For example, upgraded brake discs aren’t cheap, and having them installed might mean your insurer has to pay out more to repair or replace them.

Safety concerns: Some modifications can make your car more of a hazard to yourself and other drivers. For instance, fitting bull bars to the front of a 4x4 could increase risk of injury to pedestrians or cyclists in a collision. 

Theft risk: Adding flashy modifications, like alloy wheels, may make it more appealing to thieves, which could lead to an increase in insurance rates.

Increased performance: Any modifications that increase the power or change the performance of your vehicle must be disclosed to your insurer, along with any changes to the cars suspension, drive train, brakes, steering, induction and exhaust systems. Other examples would include electronic modifications, such as re-mapping or Performance Upgrade Packages offered by the Vehicle Manufacturer either as Over the Air Update or Dealership install post purchase.

Now, let's talk about improvements you may be able to make to your car without causing an insurance spike:

1. Cosmetic changes: These can have an impact on your insurance, but upgrading your car's appearance with items like window tinting generally won't affect your insurance costs.
2. Alarms and immobilisers: Something to consider if your car doesn't already have them, as they can lower the risk of theft, which might even reduce your premiums.
3. Safety features: Adding safety enhancements like a rear-view camera or sensors which help prevent collisions might also reduce your insurance costs.
4. Wheel and tyre upgrades: Usually, if you upgrade your tyres for added safety in winter, you won’t pay more to insure your car. 
5. Non-performance modifications: Internal improvements that make your car comfier and more convenient shouldn't increase the insurance costs. For example, a GPS device is usually a safe bet. 

We need to know what modifications you have before we can approve your insurance application, as having multiple modifications may not be acceptable. Our underwriting team decides whether or not your car is okay to be covered. They'll also decide how much your cover will cost if it's not considered too risky. 

Some modifications increase the price, some decrease it, and others won’t make much difference. Always ensure you contact your insurer to see how a particular mod affects the cover price.