How much is modified car insurance?

So, you’ve made a few modifications to your car and want to ensure that it’s properly protected. But how much is modified car insurance? Is it typically higher or lower than standard car insurance? And what criteria is likely to influence your quote?

Here, we answer all your questions about this specialist type of coverage. 

Are modified cars more expensive to insure?

Generally, yes, modified cars are often more expensive to insure than standard cars. This is largely because: 

• They’re more valuable: Modifications often increase a car's value, which means that insurers have to pay out more if it’s damaged or stolen.

• They’re considered higher risk: Some modifications, especially performance enhancements such as engine upgrades and suspension alterations, can increase the likelihood of accidents.

• They have higher repair and replacement costs: Modified parts are usually more expensive to repair or replace than standard components. They might also require specialist mechanics to install them. 

• They’re attractive to thieves: The time, cost and energy that goes into modifications makes them more attractive to thieves. These are no ordinary cars, after all.

So if you’re wondering, “Will my insurance go up if I mod my car?”, in most cases, yes it probably will. But there are some modifications that may lower your insurance costs instead. We’ll explore this more in a minute.

How much is modified car insurance?

Right, so what are you likely to pay? As you might expect, there’s no set figure here. Instead, there are a number of factors that will influence the cost of modified car insurance. Your insurer will likely consider:

• Your age
• Your driving history
• Where you live
• Your occupation
• The make and model of your car
• The level of coverage you require
• The type and extent of your modifications

How much more is modified car insurance likely to be? Again, this is difficult to gauge. Depending on your modifications, you can expect it to be anywhere between 10% to 100% more expensive than standard policies. For heavily modified vehicles, it’s not unheard of for premiums to be even higher.

As you embark on or continue with your car modification journey, it’s worth bearing in mind the broader financial impact that these changes will likely have. Modifications are not only likely to affect your insurance premiums, but also your maintenance and servicing costs, too. For some drivers, these costs are worth it. But it’s important to make sure that you’re not pushing yourself beyond what’s affordable and manageable.

What modifications increase the cost of insurance?

Let’s take a quick look at the modifications that are most likely to push up your car insurance:

• Changing the engine or other vehicle mechanics, such as installing a turbo or supercharger, or even an Engine Control Unit
• Installing a short shifter
• Making your exhaust bigger and louder (remember that removing the silencer altogether is illegal and will invalidate your policy)
• Upgrading your car’s brake discs and pads, or altering its transmission or gearbox
• Modifying the wheels
• Installing body kits, like bumpers, spoilers, side skirts, and bonnets
• Removing or replacing seats
• Changing the steering wheel and pedals
• Modifying the cosmetics of the exterior

What modifications lower the cost of insurance?

As we mentioned above, some modifications might lower your premiums. These are typically modifications that insurers feel are likely to make your car safer to drive or more secure against theft. They usually include:

• Downsizing the engine
• Installing high-performance brakes 
• Upgrading the suspension
• Installing a sway bar
• Installing extra safety features, such as trackers, immobilisers and safety locks

Read more: Does your insurance go up if you modify your car?

What are the criteria insurers look at for modified car insurance?

Whether you end up paying an extra 10%, 100%, or something in between for your modified car insurance will depend on a few different criteria. Before putting your quote together, your insurer will likely consider weigh up the following:

• The type of modifications: Performance enhancements to your engine, exhaust brakes, and tyres are likely to be more expensive than cosmetic changes you make to the bodywork, windows, and interior. Modifications that affect your car’s speed or power are seen as higher risk and are likely to be more expensive.

• The value of the modifications: More expensive modifications generally mean higher premiums, since it will cost more to replace these changes.

• The safety implications: Changes that could compromise your car's safety features may also make your premiums more expensive. By the same token, those that improve your car’s level of safety, like better brakes and suspension upgrades, could lower your premiums. 

• Security enhancements: Again, anti-theft devices or tracking systems might lower your premiums, too. Be sure to discuss them to your insurer.

• Structural integrity: Be warned your insurer is likely to scrutinise any modifications that alter your car's structure, like changes to the chassis, installing a roll cage, or opting for widebody conversions.

• Intended use: The motivations behind your modifications will play into the cost of your insurance, too. Whether the car is for daily driving, weekend use, or track days can affect your policy.

How do you insure modified cars?

Insuring a modified car isn’t all that different from standard car insurance. The most important thing to remember is to be absolutely honest with your insurer. Rather overcommunicate with them, sharing the details of every change you’ve made, than under-communicate and risk your policy being void. 

When you speak to your insurer about modified car insurance, make sure you:

• Disclose all modifications to your insurer, even if they seem minor
• Provide detailed information about each modification, including the cost and who performed the work
• Ask for an agreed value policy if possible, which sets a predetermined pay-out amount in case your car is written off
• Keep all receipts and documentation related to the modifications
• Update your policy whenever you make new modifications

What happens if I don’t declare modifications to my car insurer?

Always be transparent with your insurer. If you don’t declare your modifications — even if this is an accidental oversight — your insurer might refuse your claim.

This can have long-term implications as if you have had insurance refused or cancelled in the past, you will likely find it more difficult and expensive to find an insurer in the future.

It’s important to bear in mind that, while you might consider some modifications to be so small that they’re barely modifications at all, your insurer could see things differently. Tinted windows, alloy wheels, badges, and dashboard wraps are all modifications that your insurer should know about. Once a car has left the factory, any changes that are made to it are considered a modification and, by law, you should always let your insurance provider know about them.

Take a look at our guide, Modified cars — are you driving one and don’t know it? to make sure you’re not caught unawares.

Quickfire summary

Modified cars tend to be more expensive to insure than standard cars because they’re more valuable, might be more prone to accidents, have higher repair and replacement costs, and are attractive to thieves. Your insurer is likely to increase your premiums as a means of covering this risk.

However, there are instances where your insurer might use your modifications to lower the cost of your premiums instead. If you’ve made changes that make your car safer to drive or more secure against theft, you might see the cost of your insurance decline.

If you’re on the hunt for the right kind of modified car insurance, chat to the team at Howden. We’ll help you find the policy that’s right for you, so that you and your souped-up wheels can be on the road in no time. 

Also read:

• What modifications affect car insurance?
• Can you get modified van insurance?
• Tips on servicing and maintaining your car

READ MORE MODIFIED CAR INSURANCE GUIDES