Modified Car Insurance

We've been providing modified car insurance to communities as their local broker for over 30 years.

Since 1993 Howden Insurance have been providing modified car insurance policies to communities across the UK as a local insurance broker.

Over the decades we've worked with specialist modified car insurers across the industry and compared policy options on our clients' behalf, based on what they've told us they expect to get from their cover. Whatever modified car you need to insure, and whatever budget your budget, we'll do everything we can to help you get your hands on a comprehensive policy.

Our team also acknowledges that each motor policy needs to be as individual as its owner and their modified car, and that’s why we provide a bespoke, personalised service, which focuses on getting to know you and finding out exactly what you want from your cover.

Benefits of working with an insurance broker:

• We’re driven to save you time, money, and hassle.
• You can trust us – we’re rated Excellent on Trustpilot.
• Benefit from a tailored service that comparison sites can’t provide.
• You can speak to us directly, with your local branch, within your community.
• We’re right by your side in the event of a claim.

How to insure a modified car

To ensure you insure your modified car with the best possible policy, it's important that you compare quotes from various insurers, whilst also considering what specialist providers offer. Specialist insurers often offer better deals for modified cars as they understand that owners are enthusiasts who take good care of their vehicles. An insurance broker like Howden can get you access to policies offered by specialist insurers.

Working with a specialist insurer can also mean you get access to a policy that accurately reflects the value and risk of your modified vehicle. Making sure that your policy firstly protects you and your car comprehensively means you can then start focusing on getting the best coverage, at a competitive price.

One of the most important things to remember when insuring a modified car is, you should ALWAYS declare any modifications the car has. This ensures that the insurance you take out is accurate and you avoid invalidating your policy in the future. Ultimately, by being transparent about your modifications, you can ensure that your policy provides the protection you need.

What does a modified car insurance policy include?

Modified car insurance is mainly designed to cover for specific modifications, to ensure you and your vehicle are protected in case of damage or loss. However, insurance providers may also offer the following as part of your policy: 

• Windscreen cover
• Legal Expenses cover
• Like-for-like replacement of modified parts (in the event of a claim)
• Audio cover
• Lost key cover
• Breakdown cover
• No-claims bonuses
• Adding further non-performance modifications requires no fees
• Courtesy car
• Car club discounts
• Limited mileage discounts

Types of modified car insurance

There are various types of modified car insurance, each catering to different needs and modifications.

Third Party Only

This is the most basic level of insurance you can get for your modified vehicle. Whilst it won't cover any damage to your own car, it will cover you for any damage you cause to someone else's vehicle or any injuries they sustain following an accident which was your fault.

Third-party, fire and theft

This is a step up from Third Party Only, and instead covers you if:

• Fire damages your vehicle
• Your vehicle is stolen or damaged in an attempted theft
• You cause damage to someone's property or injure them

Comprehensive

Finally, comprehensive will cover you in the event that:

• Your modded vehicle is stolen
• Fire damages your vehicle
• You hurt yourself or damage your vehicle
• You cause someone else's property to be damaged or your injure them following an accident which was your fault

There are also agreed value policies which help ensure the vehicle’s value is accurately covered, considering its modifications. They allow the policyholder to set a predetermined value for the vehicle, including its modifications. Salvage retention policies on the other hand allow the owner to keep the salvaged vehicle, even after a total loss claim.

Want to find out more about modified car insurance? Find out the answers to all your questions in our Modified Car Insurance FAQs.

What classes as a modification on a car?

A car modification involves changing the car so it no longer matches the manufacturer’s original specifications. This can include:

Performance modifications:

Upgrades to brakes, engine, exhaust, suspension, and steering. These changes can significantly enhance the car’s performance but often require specialized insurance coverage due to the increased risk.

Cosmetic modifications:

Can involve changes to the car’s paintwork, body kit, and interior lighting. These adjustments can make your car stand out and reflect your personal style, but they also affect the car’s value and insurance needs.

Interior modifications:

Includes custom seats, upgraded sound systems, and bespoke dashboards. Even though these changes might seem minor, they can still impact your insurance policy.

Suspension and handling adjustments:

Includes lowering springs, coilovers, and anti-roll bars. Brake upgrades often involve fitting performance brake pads and larger brake discs. Each of these modifications, whether performance-related or cosmetic, requires you to inform your insurance provider to ensure you’re adequately covered.

Most popular car modifications

Among the most popular car modifications are performance upgrades and aesthetic changes.

Air filters, particularly cold air intakes, are commonly used to improve engine noise and turbo flutter, with potential minor performance and fuel efficiency gains. Performance exhaust systems reduce back pressure, allowing the engine to expel exhaust gases more efficiently. These modifications not only enhance performance, but also provide a more engaging driving experience for car enthusiasts.

Cosmetic modifications are also highly popular. Adding spoilers, changing wheel accessories, and applying light lens tints are frequent choices. Alloy wheels, which make up 21% of all modifications in the UK, are sought after for their performance and aesthetic benefits. These modifications can significantly alter the car’s appearance and often require specialised insurance coverage to ensure the modifications are protected.

Does modifying your car affect insurance?

Yes, modifying your car can indeed affect your insurance premiums. Any modification to your car is likely to impact your insurance premium. Here are some things to keep in mind:

• Modifications that boost a car’s performance or value typically raise insurance costs.
• Insurers may not cover cars with certain modifications, such as unprofessionally installed powerful engines.
• Therefore, it’s crucial to ensure any modifications are professionally installed and disclosed to your insurer.
• However, security features like extra locks and immobilisers can help lower insurance premiums.

Not declaring modifications to your insurer can lead to claims being rejected or reduced. For instance, cosmetic changes like tinted windows can affect the insurance because they may increase the vehicle’s value or theft risk. It’s essential to weigh the benefits of modifications up against the potential increase in insurance costs.

Modifying your car can be a double-edged sword when it comes to insurance. While some modifications can enhance your car’s performance and aesthetics, they can also increase the risk profile of the vehicle, leading to higher premiums.

Conversely, modifications that improve safety and security can potentially reduce premiums. Ultimately, you should always consult with your insurer before making any modifications to understand their impact on your policy.

Can I make modifications to my car mid-policy?

Yes, with most insurers you can alter your car mid-policy! However, informing your insurer of any new modifications is vital so they can make sure your policy is altered and able to provide adequate coverage.

Failing to inform your insurance provider about modifications can result in policy invalidation when you come to make a claim. Insurers may charge an administration fee to update your policy with new modifications. Additionally, the cost of your policy may increase if the modification raises the risk level of the vehicle. We advise that you check with your insurer about potential cost changes before proceeding with modifications.

Keeping your insurer in the loop is not just about compliance, but also about safeguarding your investment and ensuring your car remains fully covered under the insurance policy.

How much is modified car insurance?

There are several factors that can cause the cost of your modified car insurance to vary significantly.

For example, if modifications increase your car’s value, you might pay a slightly higher premium. Whereas, security modifications such as trackers and alarms can sometimes reduce insurance premiums. Modifications like roof bars or a towball might have little or no impact on the premium cost.

Then there's young drivers, who typically pay more for modified car insurance due to their higher risk profile.  Understanding these factors can help you anticipate the cost of insuring your modified car and make informed decisions about future modifications.

How to get cheap modified car insurance

Here are some tips to help lower your insurance costs:

• Reduce your annual mileage.
• Park your car in a garage or driveway overnight.
• Only pay for the cover you need, and avoid policy extras if they're not necessary.
• Pay for your insurance annually instead of monthly to avoid interest charges.
• Notify your insurance provider of any new modifications as soon as possible to avoid policy invalidation.

Are modified cars more expensive to insure than cars?

Modified cars are generally costlier to insure because of the heightened risk they pose. Modifications can make a car more valuable, expensive to repair, or more likely to be stolen, increasing insurance premiums. Specialist modified car insurance might be needed if modifications alter the car’s original insurance group. However, some modifications, such as safety enhancements, might actually reduce insurance costs. 

By choosing modifications that enhance safety and security, you can potentially reduce the cost of insuring your modified car.

Still want to find out more about how modified car insurance policies work? Either give us a call on 01635 874 646, Get a Quote via our website, or visit us in your local Howden branch.

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