Types of Car Modifications and The Cost of Insurance

Modified car insurance tends to cost more than standard polices for two reasons. Firstly modified cars are likely to be more valuable than their 'factory setting' counterparts. Secondly performance modifications suggest faster, more difficult to handle cars, which are inevitably more risky to drive and more likely to be involved in accidents. Often the factors, value and performance, are combined meaning even higher costs. Finally modified cars are often more expensive to repair - parts and labour often attracting a premium!

What are modifications?

Modifications fall into broadly three categories:

Minor Modifications

These include re-sprays, tinted windows and new seating, car phone systems, alarms, tracking devices and immobilisers. Minor modifications generally will not raise your insurance costs drastically, but should still be notified to your insurer as they change the state of the car from its original specifications. Security modifications are likely to reduce the cost of your car insurance - so not all modifications are 'bad'.

Medium Modifications

Including spoilers, alloy wheels and other 'beauty treatments'. Cosmetic changes to your car that enhance the appearance significantly can raise two issues for insurers. Generally these cars are more valuable and therefore at a greater risk of theft. Additionally they are statistically more at risk of vandalism. The cost of repair or replacement is higher than that for cars without modifications which makes the modified car insurance policy more expensive.

Major Modifications

These can be enhanced exhausts, engine chipping, low profile tyres, bodywork modifications. Generally all of the above will attract the highest premiums in the modified car insurance market. All performance enhancing features will tend to put the car in a higher risk category and like other modifications also increase the cost of repairs and replacements.

Modifying the Costs

Keeping the cost of modified car insurance or performance car insurance down is not impossible. Adding security features can balance the higher theft risk category, while reducing the mileage on performance car policies can also be beneficial.

Because the insurance industry is highly competitive it pays to shop around. Compare as many quotes as possible - especially if you fall into the major modification category. Try several comparison sites to get the best overview of the quotes available and approach specialist modified car insurance brokers to find the best deals across the market.

Ensure that you keep your current provider up to date with any modifications - especially the performance type to avoid invalidating your cover. With a little planning modified car insurance can be sourced that is cost effective and means you can build the car of your dreams!