Car modifications and insurance: what you need to know

Car modifications can be a great way to personalise your vehicle and enhance its performance, but did you know it can also impact your car insurance? Here’s a quick guide to help you navigate the world of car modifications and insurance.

What is considered as a modification?

A modification is a change made to a vehicle which alters it from the manufacturer’s standard specification. This includes:

• Performance upgrades: engine remaps, turbochargers, or exhaust system changes.
• Cosmetic changes: custom paint jobs, body kits, or tinted windows.
• Functional additions: upgraded brakes, suspension changes, or tow bars.

Is a tow ball or bar classed as a modification?

Yes! Even something as simple as fitting a tow ball or bar can be considered as a modification by an insurer. Whilst it may seem minor, it’s important to declare it to your insurer otherwise in the event of a claim you may not be covered.

Things to consider before modifying your car

1. Check with your insurer first. Always notify your insurer before making any changes to your vehicle, as the insurer may not cover a vehicle that has been modified.
2. Research the impact. Some modifications can increase your premium, whilst others, like security upgrades, might lower it.
3. Think about the resale value. Not all modifications add value to your car – some might make it harder to sell.
4. Safety first. Ensure any modifications are professionally installed and meet legal standards.

How modifications affect your insurance

Modifications can impact your insurance in several ways. For example:

• Increased premiums. Modifications that enhance performance or make your car more attractive to thieves can raise your premium.
• Policy voidance: Failing to declare a modification could invalidate your policy, leaving you uninsured in the event of a claim.
• Specialist insurance. Heavily modified cars may require specialist insurance policies. This is where a specialist broker can add value, as they have relationships with insurers who will offer cover for modified vehicles.

Why do insurers care about modifications?

Insurers evaluate risk according to a vehicle’s original specification. Modifications can change how a car performs, its safety features, and the likelihood of it being stolen – all of which affect the level of risk.

The bottom line

Modifying your car can be exciting, but it’s important to understand the impact it will have on your insurance and to be transparent with your insurer. Always declare any changes, no matter how small, to avoid any surprises down the road.

If you have any questions about modifications and insurance, please contact our specialist team on 0330 008 9653 or email privateclients@howdeninsurance.co.uk