20th January 2022

Are Modified Cars More Expensive To Insure?

Modified cars can offer unique performance capabilities, but could increase insurance premiums, cancel out the added value and spoil your enjoyment? In this article, we look at modified car insurance and how to get the best deal.

What Is a Modified Car?

Within the context of insurance, a 'modified car' is a vehicle that has been altered or upgraded with aftermarket parts to improve its performance. Popular modifications include installing turbochargers, altering the transmission or gears, changing the exhaust system, amending the wheel arches, adjusting the suspension, tuning the electronic control unit (ECU), and fitting alloy wheels. Cosmetic changes such as adding tinted windows, custom paint jobs, and altering the dashboard may also count as modifications to some insurers.

Are Car Modifications Legal In The UK?

As long as they are safe, many modifications are legal. However, some aftermarket parts are either not allowed on public roads under UK law (but may be usable on a private race track), or are a grey area. For instance, under-car neon lights are generally legal, but they cannot flash, must not be green, and must not be visible from inside the vehicle. Tinted windows are legal if enough light enters them, and police have devices to test this. Some alterations, such as the highly dangerous Nitrous Oxide (N20) engine modification, or the environmentally damaging removal of the catalytic converter, are illegal.

Which Car Modifications Must Be Declared?

All modifications, no matter how small, should be declared to the insurance provider. There are a range of reasons for this. For instance, increased horsepower (bph) may affect the likelihood of an accident, while custom or bespoke parts may be more expensive to replace or make the car more attractive to thieves. As such, to calculate the correct premium, insurers need to know the precise performance capabilities of the vehicle. Not declaring modifications can be an expensive gamble because it may render the existing policy void.

Will Modifications Increase My Car Insurance Premium?

In some cases, modifications will increase the cost of car insurance. As a general rule, if the insurance provider thinks that the modifications will make the vehicle more likely to be in an accident, more likely to be stolen, or more expensive to fix, the driver will be asked to cover the risk. Therefore, anything that increases speed will incur additional costs, and opting for branded parts will often hike up the premium. However, some safety-focused modifications can actually lower the cost of car insurance on otherwise pricey cars. Examples include improving the braking system, upgrading the roll cage, or installing speed limiters.

Car insurers want to see vehicles that are safe, efficient, and reliable. As such, modifications are embraced as long as they are not reckless or dangerous. However, it often takes an expert to understand the difference between a cosmetic upgrade and one that adds tangible value, so it pays to partner with an insurance provider that has a specialist interest in modified vehicles. Expert providers will offer solutions that are personalised and fair rather than hitting drivers with a one-size-fits-all modification premium.

What Next?

At ManningUK, we recognise the value of vehicle modification, and support drivers to ensure that the insurance is realistic, comprehensive, and reliable. For more information, please get in touch with one of our vehicle insurance brokers today.

Image Source: Pixabay