Can you Insure a Modified Vehicle?

What Are Modifications?

A vehicle modification is any change you make to your car that’s different from how the manufacturer originally built it. This could be something small, like a new paint job, or something bigger, like upgrading the engine.

Here are a few examples:

• Looks: Custom paint, new wheels, tinted windows, body kits.
• Performance: Turbochargers, new exhaust systems, suspension upgrades.
• Interior: Custom seats, sound systems, high-tech gadgets.
• Wheels & Tires: Bigger rims, off-road tires.

Why You Need to Insure Modifications

Regular car insurance covers your car the way it came from the factory. If you modify it, the value and risk could change. For example, a flashy car with upgrades might be more attractive to thieves or more expensive to repair after an accident.

If you don’t tell your insurance company about the changes, it could lead to problems:

• Claim Denied: If you have an accident or your car gets stolen, your insurer might refuse to pay for repairs or replacements if they didn’t know about the modifications.
• Policy Canceled: Some insurers could even cancel your policy if they find out you didn’t report the changes.

How to Insure a Modified Vehicle

1. Tell Your Insurer: Always let your insurance company know about any modifications, big or small. This helps them adjust your policy.
2. Specialized Insurance: Some insurers offer policies just for modified vehicles. They understand the unique value of your car and cover it accordingly.
3. Agreed Value: With an agreed value policy, you and the insurer decide on a value for your car, including the modifications. If something happens, you’ll get paid based on that agreed amount.
4. Keep Records: Hold onto all your receipts and documentation for the modifications. This can help if you ever need to make a claim.

How Modifications Affect Your Insurance Cost

Modifications can change how much you pay for insurance:

• More Expensive: High-performance upgrades, like a new engine or turbocharger, often lead to higher premiums because they increase the risk of an accident. Flashy modifications can also make your car more likely to be stolen.
• Less Expensive: Some safety upgrades, like better brakes or improved lighting, might actually lower your insurance premiums.

Modifications Insurers Don’t Like

Certain modifications can raise red flags for insurers and may result in higher premiums:

• Engine Tuning: Changes that boost engine power make your car riskier to drive.
• Suspension: Lowering or lifting your car can affect how it handles, which can be risky.
• High-Performance Tires & Brakes: These upgrades can make insurers think you might drive more aggressively.

The Bottom Line

Yes, you can insure a modified vehicle, but it’s important to keep your insurer in the loop about all changes. Look into specialized insurance if you have a lot of modifications and make sure you understand how these changes could affect your premiums. By being honest with your insurer and getting the right coverage, you can drive your customized car with peace of mind.