You might have dreamt for a DC modified car or perhaps already own one! Though the modifications look spectacular, the car insurance premiums don’t. This article will give you insights about different modifications and its effect on the premium.
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If you are fond of cars and spend a lot of time altering it since the time it has left the showroom, you definitely should be aware how modifications play an important role in increasing your car insurance premium.
This modification could be anything from a minor change to revamping your car with some significant alterations. Some changes that you make to the vehicle will impact the amount of car insurance premium that you pay annually.
Therefore it is advisable to consider the potential costs that you will born when you modify your car.
What is Car Modification?
One thing that can be confusing with car insurance is understanding precisely what counts as a modification.
A car modification includes but not limited to any changes that you made to your car in its original condition that is sold by the manufacturer.
In car insurance modification terminology, modification means anything that has made your car look or performs differently.
The word modification also includes those optional extras offered by your car dealer. These add-ons might come included with the new car purchase where, as a buyer, you don’t realise that you are paying for modifications to your new vehicle. In many cases, this can result in the car insurance being voided while claiming for an accident or theft.
However, the good news is that modifications made by manufacturers are market-approved and are intended to be harmonious with car’s specifications.
In this article, we will detail a number of car modifications and how they affect your car insurance premium.
How do Modifications change the rate that you pay for Car Insurance?
Insurance companies use some factors before arriving at a final price to quote. There are mainly two areas where car insurers assess your car insurance policy.
Risk of theft: Modifications such as performance modifications increases the chance that your car is broken into or stolen.
Risk of an accident: Insurance companies consider modifications concerning the look and performance of your car, as a higher accident risk. These modifications include engine changes, spoilers, body-kits, sports seats, etc.
What modifications affect your car insurance premium?
Engine and mechanics modifications
The modifications that are done to increase the engine performance and accelerator speed are subject to increase the risk of an accident.
Road accidents are engaged in over-taking, higher in speed, and other accident-prone activities. Thus, adding supercharger or turbo can add on to your car insurance cost.
Breaks and suspension
Changing the critical parts need assessment by the insurance company as the overall control lies in the breaks. In case you are upgrading breaks and suspension of your car, the performance on the road will change. You must inform the insurer of such amendments including the details of the service provider.
Wheel modifications
Wheel modifications are mainly done to enhance the look and the value of the car. It is advisable to inform your car insurer if you get your car wheels modified or changed.
Car interior
If you plan to modify the car’s interior including but not limited to steering, pedals, sound system, seats, etc. you need to inform your car insurance company.
Paintwork
Getting your car’s paint changed can drastically change the look of your car. Especially, adding complex racing designs and eye-catching patterns can completely change the look of your car.
This might seem one of the most harmless modifications that you do to your car, but this also requires you to inform your car insurance provider.
Non-standard engine change
One of the main aspects to decide on your car insurance premium is the engine of your car. A non-standard engine will definitely be one major amend that you implement on your car. A non-standard engine indeed leads to increase the risk of breaking down or an accident. The reason behind involving your car insurance provider in these modifications is that the quality of products used, and the wear and tear vary. Your insurance provider needs to have this information to do the calculation of your car insurance premium.
Car stickers
Many car insurance companies think decals or any stickers stuck on the car as a part of modification. If you either have one or plan of applying one, do check with your car insurance provider whether it would otherwise affect your car insurance premium.
What Modifications do not affect your Car Insurance?
Any modification more or less will affect your car insurance, and generally, modifications tend to increase insurance premiums. However, certain changes do not adversely affect the premium if they are likely to decrease the risk of an accident or theft. For instance, insurance companies don’t count parking sensor as a modification as it protects the car from the damage that may occur while reverse parking.
Why declare your Car Modifications?
As the policyholder, you must disclose all the modifications that you make in your car. If you’re buying a second-hand car and are not sure of work that may have been carried out, it is advisable to get your vehicle examined by a mechanic.
If you don’t disclose the alterations, no matter whether they were intentional – your application may be rejected, and your coverage will be void.
If your car has been altered, you must declare this to the insurer – even if you have not done the modifications yourself. It is also essential to inform your car insurance company as and when you make further changes into your car.
If your insurance is rejected or cancelled once, you may find it even harder and costly to get car insurance in the future.
Despite the cost involved in car insurance policy, more and more people are opting for modifications as people love to give their car a personal touch. Simple modifications may not increase the premium by a considerable amount. However, certain notable modifications that change the performance of the car may hike the insurance cost significantly.
You have the freedom to modify your car provided you are aware of the costs involved.
It is crucial to inform the insurance provider about the modifications that you are make to your car. This will help the insurer to analyse and modify the insurance premium accordingly. It is advisable not to hide or wait for the last moment to inform the insurance provider about such modifications, as this may save you from unnecessary hassle at the time of processing your claim.
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