How will vehicle modifications impact my insurance premium?

A car modification is any kind of alteration to a vehicle which changes the way the vehicle looks, performs, or behaves and isn’t part of the factory’s standard specifications.

Any modification is likely to impact your regular premiums. For example, a car with upgraded alloy wheels is likely to be deemed more expensive and is more likely to be broken into. Similarly, if you make engine modifications to increase a car’s power and performance, most insurers will see the vehicle as a higher risk. The premiums will therefore be higher to counteract the increased risk.

In contrast, some modifications may lower your insurance premiums. Parking sensors could reduce the likelihood of causing damage to your vehicle whilst parking, therefore reducing the premiums payable.

Insurance companies may also give you the option to fit a telematics device, known commonly as a black box. These devices monitor driving characteristics, such as acceleration speeds and braking severity, and adjust the premiums accordingly. It is worth noting that whilst this could reward you with lower premiums for safer driving, you may pay increased premiums if your driving is deemed risky in any way. There may also be a penalty for driving at specific times, such as late in the evening.

It is important to note that if a technician comes out to fit a telematics device to your vehicle and discovers any kind of modification which was not declared to the insurance provider, they may refuse to fit the device and ask you to speak directly with the provider before the installation can be carried out. This could result in a second visit to your vehicle and there could be a cost for this.

When purchasing a new vehicle, you should also consider whether there have been any modifications made to the vehicle by the previous owner as these could also impact your premiums. If you are unsure, you could ask a local repair technician to look over the vehicle to ensure you are relaying the correct information to your insurance provider.

Insurance companies may vary in the way they view different modifications. We would advise calling your insurance provider before making any modifications to help you make an informed financial decision.

If you don’t declare modifications on your car insurance and then need to make a claim, your claim may be refused, and your insurance may be void. It could also lead to cover being more expensive in the future.

For further advice, just give us a call!