How will car modifications adjust your car insurance?
Car owners should always tell insurers about modifications made to their car, as failing to declare your modifications could invalidate your policy. If you have already taken a policy out and decide to make alterations to your car, you must inform your insurance company as soon as you do so. Do not wait until it is time to renew.
Insurance providers are able to calculate how modifications can change insurance policies through assessing the risk of accident, risk of theft and value of the vehicle. Modifications that include engine changes, sports seats, spoilers etc. can also alter the performance of vehicles. It is down to your personal preference on whether shiny new wheels are worth more than the safety of you and those surrounding you. Modified vehicles will become more valuable as the changes made do not come cheap, meaning insurers will tend to charge more to insure vehicles which will cost more to replace or repair if they are involved in an accident.
Even paint jobs can lead to car owners paying more for cover, as some insurers link specialist paint, decals, stripes and rally numbers to a higher risk of theft.
The most expensive areas where modifications can be made on your car are the engine and mechanics, bodywork, and interior. Motorists who decide to add a turbo/supercharging to the engine can expect a 91% increase on their insurance, and a transmission/gear change will inflict a 45% inflation. Implementing wheel arches (41%) onto the car's bodywork will will see the third highest increase in insurance costs.
Although most modifications made to vehicles will see an increase in cost of insurance cover, there are a few changes that will see you save money. Additions of parking sensors (-13%), tow bars (-8%) and accessibility modifications (-2%) will see a decrease in premiums as these changes will reduce the risk of damage. A sunroof and air conditioning would both see a insurance premium decrease of -1%.
It is also worth noting that not all car modifications are legal, and failing to comply with the laws could result in you being prosecuted, on top of your car insurance policy being invalidated. Illegal car modifications include tinted windows, as the car windscreen must let in a minimum of 75% light and front side windows must let in 70%. Also, when modifying number plates you must use the correct font and spacing.
With more and more modified vehicles on the road, it is also worth knowing how to tell if one has undergone expensive surgery. If you haven't already noticed the shiny rims and huge exhausts, always make sure to ask the owner if any modifications have been made. Common car upgrades include bigger wheels, alloy wheels, tinted windows, adjusted suspension, sports exhausts, spoilers, and upgraded stereo systems.
If you are cautious that any of the above modifications are not 'factory-fitted', you should refer to the vehicles specifications that can be found online via car buying websites e.g. www.parkers.co.uk/cars/reviews/facts-and-figures/
For full details on how vehicle modifications can change the price you pay for car insurance please see the guide below.
How is car insurance affected by modifications?
Engine and mechanics
- Turbo/Supercharging 91% increase
- Transmission/Gear change 45% increase
- Exhaust changes 3% increase
Bodywork
- Wheel arches 41% increase
- Complete body kit 26% increase
- Spoilers 7% increase
- Light changes 6% increase
- Tinted windows 1% increase
- Tow bar 8% decrease
- Accessibility modifications 2% decrease
Interior
- Replacement of seats 16% increase
- Replacement of steering wheel 16% increase
- Dashboard changes 3% increase
Brakes and suspension
- Uprated brakes 15% increase
- Suspension 2% increase
Paintwork
- Specialised paintwork 15% increase
- Stripes and badges 9% increase
Wheels
- Alloy wheels 1% increase
Fuel economy
- LPG conversion no change
Driver aids
- Satellite navigation system 13% increase
- Car phone kit 12% increase
- Parking sensors 13% decrease
Source: moneysupermarket.com