Is modified car insurance cheaper?

Many car enthusiasts are drawn to customising a car to reflect their personal tastes. Whether it’s just a few small aesthetic tweaks or more substantial performance-enhancing adjustments, car modifications can be a huge amount of fun. But before you hit the road in your souped-up wheels, you’ve got to let your insurer know about the changes you’ve made. Which begs the question: is modified car insurance cheaper?

Here, we’ll explore what impact modifying your car is likely to have on the cost of your car insurance, and answer a few other modified car insurance-related questions.

Understanding these points will help to ensure that you’re fully informed and that your (much beloved) car is adequately covered.

Let’s get started.

What does modification mean on car insurance?

First things first, what are insurers referring to when they talk about car modifications?

A modification is any change made to a vehicle that alters its standard, factory specifications. This change can be cosmetic, like new paintwork or tinted windows. Or it can refer to major performance enhancements, like installing turbochargers or upgrading the exhaust system. Other common modifications include altered suspension systems, changing the wheels and tyres, and customising the interiors.

Read more: What modifications affect car insurance?

Insurers classify modifications based on how they affect the car's appearance, safety, and performance. Depending on how significant your modifications are, you might find that these changes affect what you pay for your insurance.

And if you’re wondering whether you need to let your insurer know that you’ve made changes to your car, the answer is an unequivocal yes. In fact, it’s a legal requirement.

You’ve got to tell your insurer about any modifications you make to your vehicle, even if they seem relatively small or if you think that it won’t affect your policy. You’ve even got to let them know if it’s your car’s manufacturer who’s making the modifications.

Stay on the safe side, and let your insurer know. They’ll be able to do an appropriate risk assessment to see whether there needs to be any changes to your policy. If you fail to inform them and you make a claim, your policy might be invalidated, and your insurer could refuse to pay out. This could also have repercussions down the line: because you weren’t honest with your insurer, you might find it harder to get insurance again in the future.

How does modified car insurance work?

Modified car insurance doesn’t work any differently from standard car insurance. It simply factors in any modifications or alterations you’ve made to your car.

Since the unique features to a modified car can pose different risks compared to those posed by standard vehicles, specialised insurance is necessary to adequately cover them. You can expect the following to be included in your typical modified car policy:

• Limited mileage discounts
• Track day cover
• UK and European breakdown
• Club member discounts and access to bespoke schemes
• Multi-vehicle cover

Is modified insurance cheaper than standard car insurance?

So, will your insurance go up if you modify my car?

Generally, modifying your car will increase the cost of your car insurance. This is because modifications, especially those that significantly enhance your car’s aesthetics or performance, usually:

• Increase the value of the car
• Make it more expensive to repair
• Increase the risk of accidents
• Make it more likely to be stolen or damaged

For example, a car with a modified engine can go faster, which increases the likelihood of an accident. And custom bodywork can be time consuming to fix if it’s scratched or damaged, and might require someone with specialist expertise. Insurers weigh up these increased risks and charge higher premiums to cover themselves in the event of an incident.

The following modifications are likely to affect the cost of your insurance:

• Modifying the engine or other vehicle mechanics: Because this can increase your car’s performance, it’s likely to push up your premium.
• Installing a short shifter: A short shifter helps gear changes quicker, and is often associated with younger, riskier drivers.
• Making your exhaust bigger and louder: While you can make some modifications to your exhaust, bear in mind that removing the silencer is illegal and will invalidate your insurance policy.
• Upgrading your car’s brake discs and pads: This will likely add value to your vehicle and consequently increase the price of your insurance.
• Modifying the wheels: Wheel upgrades, such as alloys or wider tyres, are also likely to increase the cost of your insurance.
• Installing body kits: Bumpers, spoilers, side skirts and bonnets aren’t always the safest add-ons and your insurer is likely to consider them a risk.
• Removing or replacing seats: Even reupholstering the seats in your car may increase your premium.
• Changes to the steering wheel and pedals: Any modifications you make to the steering wheel and pedals will likely also increase the price of your car insurance.
• Cosmetic modifications to the exterior: Custom paint jobs, bumper stickers and decals, under-car neon lights, or custom LED highlights are likely to hike the cost up, too.

However, there are exceptions. Some changes, like adding advanced security systems such as alarms, immobilisers, or tracking systems, can actually reduce your premiums. Other modifications that might lower your insurance include:

• Downsizing the engine: Downsize your engine to make it more energy efficient could mean a cheaper premium.
• Installing high-performance brakes: If you have an ordinary car (rather than a sports car), and if your car is already highly modified, improving your braking system could significantly reduce the cost of your insurance.
• Upgrading the suspension: This will usually only lower your premium if your vehicle is heavily modified.
• Installing a sway bar: Again, this will usually only reduce the cost of your car insurance if you’ve made lots of other modifications.
• Installing extra safety features: Improving the security of your vehicle will likely reduce your premium.

There are some modifications that won’t affect the cost of your insurance at all. These include adding a water cooling system, fitting winter tyres, fitting wind deflectors, and tinting your windows. It’s still worthwhile running these changes past your insurer, however, as you wouldn’t want to be unexpectedly caught out by an invalidated policy.

How can I reduce the cost of modified car insurance?

If you’d like to lower the cost of your insurance premiums, be selective about the modifications you choose. Some of the options provided above are likely to affect your insurance more than others — your broker will be able to tell you.

The following tips might also help you to keep your premiums down:

• Lower your mileage
• Park your car in a garage or lock-up
• Pay for your premiums annually rather than monthly
• Increase your excess (be conscious that you can afford this cost, though)
• Add a named driver with a good driving record (remember that this person will genuinely have to drive the car from time to time)
• Look into a black box premiums, which are based on how safely you drive

Is it hard to insure a modified car?

Insuring a modified car can be more challenging than insuring a standard vehicle. Not all insurers cover modified cars, and those that do often have stringent requirements and charge higher premiums.

It does depend on the extent and type of the modifications. Minor cosmetic changes can usually be accommodated quite easily, but extensive performance modifications might limit the number of willing insurers. Finding comprehensive coverage that adequately reflects the value and risks associated with the modifications can be tough.

If you’re looking for modified car insurance, your best bet is to speak to an experienced broker. They’ll assess your modifications and provide you with quotes that adequately cover your needs.

Quickfire summary

Modified car insurance is generally more expensive than standard car insurance. This is because modifications typically make cars more valuable, more expensive to repair, or more likely to get into an accident, stolen or damaged. There are some instances where modifications can lower the cost of insurance premiums, or have no effect at all, but on the whole, you’re likely to pay more.

No matter what kind of modifications you make, be sure to let your insurer know what you’ve done. Failing to inform them properly could void your policy. This might mean not only that they won’t pay in the event of a claim, but that you might battle to secure insurance in the future.

At Howden, we take your unique modifications into account, and recommend insurance policies that fit your individual requirements. Contact us today to find the best coverage for your favourite wheels.

Also read:

• Modified cars – are you driving one and don’t know it?
• Can you get modified van insurance?
• Do I need high performance car insurance?

READ MORE MODIFIED CAR INSURANCE GUIDES