Car Insurance

Here’s How Car Modifications Affect Your Car Insurance Policy

Who doesn’t love an attractive car that is high on style and performance? Rapid acceleration and the sound of a loud exhaust can surely to excite an automobile enthusiast! There are a lot of people who love to modify their cars and add their own special personal touch to their vehicles. Car modifications can either be done to upgrade the looks of your car or enhance its performance. However, many are oblivious about how car modification affects on car insurance.

Indeed, the premium you pay for your car insurance policy does depend on the number and type of modifications you have performed on your car. For a better understanding, here is how different car modifications will affect your car insurance premium:

  • Engine and performance modifications

    While engine modifications that boost your car’s horsepower are quite desirable, such upgrades are known to cause a hike in the premium you pay for your car insurance policy. This is because by enhancing the performance of your car, it becomes a dangerous machine that can encourage you to over–speed and over–take other vehicles on the road without caution. Such driving etiquette can make you susceptible to an accident. While modifying your car exhaust system and air filters can cause your premium to increase by 25%, engine upgrades – such as turbocharging – can possibly increase your car insurance premium by a whopping 132%!

  • Wheel modifications

    If you change the standard wheels of your car to fancy alloy wheels or broad tyres, your insurance premium can rise by 8% or 18% respectively. You may wonder how a wheel change would affect your car insurance premium. The answer is simple; high–end wheels are quite rewarding for thieves because of their resale value. Thus, modifying the wheels of your car can make them quite attractive to thieves and thus, increases the chances of your car wheels being stolen.

  • Exterior car body modifications

    Car modifications such as bonnet bulges, tinted windows, decals, and changing of lights among others can cause the premium of your car insurance policy to increase. This is because it makes your car look more appealing and increases the chances of your vehicle being stolen or vandalised. Furthermore, such modifications can also increase the cost of getting your car repaired after an accident. Exterior car modifications can cause your car insurance premium to increase by anywhere between 12% to 66% depending on the upgrades.

  • Interior car body modifications

    Interior body modifications usually decrease the safety of your car and can lead to an increase in the car’s susceptibility to getting damaged severely in an accident. As a result, the cost of your car insurance policy increases as well. Changing the factory–made roll cage of your car increases your car insurance premium by around 41%. Furthermore, if you replace the seats of your car, the premium of your car insurance policy would usually increase by 27%. Modifying the upholstery and dashboard of your car would also cause the cost of your car insurance policy to surge by about 16%.

While modifications can make your car the centre of attraction on the roads, you must be aware of how car modification affects on car insurance. Do keep the insurer informed about the modifications you have carried out on your car as failing to do so can cause your insurance claims to be rejected.

Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.

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