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Modified Car Insurance: Everything You Need to Know

Some of us love to customize the car and add a few additional features. From graphics to revamped seats, music systems, performance boosters, lights, horns, and more, there are numerous attachments to add to a car. 

But how does it affect car insurance? Can you use the same insurance policy for a factory version and a modified car? Will you have to pay extra to protect the additional fittings in a modified car? 

Let’s read and find out everything we can know about modified car insurance. 

Types of Modifications 

A modified car has new changes (attachments, features, settings, etc.) that are not available in the factory version. Car modifications are broadly classified into three types: 

Interior Modifications 

The changes made to the interiors of the car come under this category. It could be an upgraded dashboard, new seat covers, a high-end music system, a new air conditioner, extra speakers, Bluetooth connectivity devices, airbags, etc., a few examples. Internal modifications make the car more comfortable for the passengers. 

Exterior Modifications

The changes made to the car’s body are called external modifications. These include graphics, paintwork, new lights, bumpers, flared wings, panels, etc. Most external modifications are done to increase the appearance of the car rather than the performance. 

Performance Modifications

These are the changes made to the car’s system that affect its performance. For example, upgrading the exhaust system, replacing the air filters, changing tires, adding nitrous oxide mechanism to increase speed, fitting anti-theft devices, installing airbags for more safety, turbochargers, better suspensions, etc., impact the car’s performance in one way or another. Installing CNG kits for petrol cars is also a performance modification. 

Modifications and Car Insurance 

Modifying a car’s factory parts will have an impact on its value. A modified car with the latest upgrades will be more expensive as you have spent more money on additional fittings. The auto insurance premium will have to match the car’s upgraded value. 

Does any modification lead to an increase in vehicle insurance? 

No. Modifications related to safety aspects like airbags and anti-theft can reduce the premium amount and make the premium more affordable. That’s because an anti-theft device will reduce the risk of the car being stolen (and not found). This will minimize the chances of filing a claim for a stolen car. 

Insurance companies offer discounts to car owners with safety devices. However, the discounts are applicable only if you install devices approved by the insurer. The list of devices and the criteria change from one insurer to another. Talk to cicero car insurance agents to know how you can get low-cost automobile insurance by making modifications to your car. 

When considering modifications for your car, it’s essential to prioritize safety features, not only for your well-being but also for potential discounts on your insurance premiums. Installing approved anti-theft devices, airbags, and other safety enhancements can not only enhance your vehicle’s security but also lead to more affordable auto insurance rates.

Furthermore, all modifications don’t affect the premium amount. Changes like new seat covers, lights, and alloy wheels don’t impact the premium. 

Should you update the insurer about care modifications? 

Yes, you should. It is always safer to inform the insurance company that you added new fittings to the car, and its value has changed proportionally. This will prevent your claims from being rejected in case of collisions or accidents. 

You will not only receive the insurance amount to cover the damages but might also be blacklisted or marked for material misrepresentation. This will reduce your chances of finding an affordable insurance provider. Insurers will add you to the high-risk category and increase the premium amount. 

That said, car modifications affect only comprehensive insurance policies. If you own third-party liability coverage, you don’t have to worry about the modifications. 

What is Racing Exclusion? 

Racing exclusion is the process of rejecting a claim if the car is damaged during a race. The meaning of racing changes from one insurance company to another. Racing is not limited to official competitions or tracks and can happen anywhere (on-road and off-road). Ask specifically about what the insurer means by racing to know when your car will be protected by insurance and when it won’t. 

Why Choose Modified Car Insurance 

If you intend to add new fittings to the car or already own one with additional features, opt for modified car insurance. Modified car insurance provides much better coverage for the vehicle. You don’t have to worry that the claim amount will not be enough if your expensive car ends up in an accident or collision. 

Another reason is to protect the automobile policy and prevent it from being nullified by the insurance company due to data mismatch. Your car and coverage will be protected when you choose modified car insurance. 

Final Words 

Modified car insurance offers better protection for your car and covers your expenses. The premium amount can be reduced through discounts based on your driving history, credit score, etc. You can find modified car insurance for your budget if you take the time to compare quotes from different insurance companies before deciding. 

https://www.acko.com/articles/car-insurance/planning-to-modify-your-car-know-its-impact-on-your-car-insurance-plan/
https://www.caranddriver.com/car-insurance/a36144747/modified-car-insurance-1618583709/
https://www.lelandwest.com/blog/listing.asp?2020/8/the-top-things-you-need-to-know-about-modified-car-insurance

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Written by Kesara Bandaragoda

GAG Staff

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