Does insurance cover modified cars? A lot of car owners who are concerned with the outlook of their car take great satisfaction in personalizing it to improve performance and express their personal style.
But one important point that most car owners fail to recognize is the way in which these changes can affect insurance coverage.
If you are a car enthusiast who seeks to showcase your car with your unique sense of flair, then you must ask yourself this question: ‘Does insurance cover modified cars?’
Not all insurance companies handle modified cars the same way; hence, it is important to know the specifics of modification coverage in order to safeguard your financial future.
In this article, we would discuss whether insurance covers modified cars and other important information that would add to your knowledge.
What Is Car Modification?
Car modification is simply the process of improving the general outlook, performance, and functionality of a car beyond what was originally specified by the manufacturer.
This can entail a variety of modifications, such as the installation of additional technology and safety systems, performance improvements like engine tuning and suspension upgrades, or cosmetic upgrades like custom paint jobs and body kits.
Car modification is often pursued by enthusiasts who want to customize their cars, improve the driving experience, and add more utility to their cars.
Car owners must, however, take into account the potential effects of these changes on coverage and local laws.
Types Of Car Modifications
Car modifications encompass a variety of car component, such as;
- Body kits or spoilers
- Interior deigns
- Lights
- Alloy wheels
- Car suspension
- Sport seats
- Tinted windows
- Decals
- Upgraded exhaust systems
- Car tuning
- Cold air intake
- Fuel additives
- Brake upgrades
- Light changes
- Engine tuning or remapping
- Turbochargers or superchargers
- Vinyl wraps
- Upgraded wheels and tires
- LED lighting or underglow kits
- Lowering or lifting kits
- Adjustable coilovers or air suspension systems
Does Car Insurance Cover Modified Cars?
When calculating how much you’ll pay for auto insurance coverage, most insurance companies factor in the modifications on your vehicle.
This is because modified cars often include features and parts that are expensive and delicate. If you have a modified car, you will be required to either have a custom car insurance policy or a coverage endorsement.
Essentially, modified cars largely affect how much your insurance rate will be as a result of the high repair cost involved.
So, if you are insuring this kind of vehicle, expect to pay a higher premium. However, it is possible to get an affordable rate and discount from several insurance companies if you add safety features to your car.
For instance, if you install anti-theft devices or an alarm system in your car, insurance companies can charge you less for coverage because the risk of insuring your car is lower than expected.
What Modifications Can Lead To Discounts On My Car Insurance?
There are certain car modifications that attract spatial offers and discounts from insurance companies. If your car has a modification that pays attention to safety and security, you can earn discounts from the insurance company you plan to buy coverage from.
Nevertheless, it is important to note that safety features do not guarantee a lower insurance rate.
This is because some features are often expensive to repair and replace, ultimately leading to higher premiums despite it being a safety feature.
So, if you wish to lower the cost of your car insurance, consider the following modifications:
- Alarms and security systems
- Adaptive headlights
- Rearview camera
- Parking sensors
- Airbags
- Antilock braking system (ABS)
- Electronic stability control (ESC)
- Adaptive cruise control
- Traction control
- Blind spot monitoring
Type of Insurance for Modified Cars
- Comprehensive Insurance: This type of insurance is essential for modified cars as it helps to cover theft, vandalism, and other types of damage incurred to your vehicle.
- Collision Insurance: Collision coverage offers protection for damage incurred to your vehicle in the event of an accident. If any of the modified components in your car get damaged, collision insurance may cover it.
- Liability Insurance: This type of insurance is specifically designed to protect against claims arising from property damage and bodily injury done to others. Regardless of whether your car has modifications or not, purchasing this coverage is a wise option.
- Specialty/Classic Car Insurance: Classic car insurance is designed to offer essential coverage for classic vehicles, specially modified ones.
- Custom Parts and Equipment Coverage: While most standard auto insurance policies may not cover the aftermarket parts and modifications, custom parts and equipment coverage offers protection for modified and custom vehicles.
Frequently Asked Questions
Will My Premiums Increase If I Modify My Car?
Your car insurance premium is most likely to increase if you modify your car. Most often than not, modifications lead to higher premiums, and this is because most insurers consider modified vehicles as higher risk.
They often have a potential for increased performance and theft; hence, your premium is likely to go up.
Do I Need Special Insurance For My Modified Car?
For those who seek adequate coverage for their modified cars, including financial security, consider purchasing special insurance.
We highly recommend Classic car insurance, as they offer adequate coverage for modified cars.
What Happens If I Don’t Inform My Insurer About Modifications?
Once an insurance company finds out that you lied during the application or you failed to disclose certain modifications, it can result in severe consequences.
In most cases, your claims will be denied, or you will not be given the exact coverage for the claim. Worst-case scenario, your auto insurance can get cancelled.