If you’ve changed your car in any way since buying it, it will be classed as a modified car and, depending on the type of modification, your car insurance premiums could go up as a result.
Any change made to a car once it leaves the factory floor is considered to be a car modification.
Car modifications are usually made to enhance the speed, performance or look of a car. Some changes might also help drivers or passengers with disabilities gain better access.
Car modifications usually fall into two main categories – performance and cosmetic. However, modifications can also include changes that improve the safety and security of your vehicle. Examples of each category can be found in the table below:
Adding a tow bar, roof rack, or wheelchair ramp may also be classed as a modification by your insurer.
Insurers work on the assumption that any modification made to the body or mechanics of a car might not be properly guaranteed, which generally results in the risk increasing along with the insurance premiums.
On top of this, if you make cosmetic changes to your car, its value is likely to go up, and the cost of repairs and spare parts may become more expensive. This means your car insurance premiums will rise as a result. Cosmetic changes could also make your car more attractive to thieves, as could installing expensive tech, which will again push up your premiums.
Similarly, if you improve your car’s performance so it can now go at faster speeds, there’s a greater risk of you being involved in an accident and making a claim, so your premiums will be higher.
Modified car insurance covers you against the same risks that standard car insurance will cover you for, but it will also cover the additional parts you’ve modified your car with.
You’ll also be able to bolt on the usual optional extras such as:
Car modifications often result in the value of your car increasing significantly, and this can make your insurance costs more expensive. However, it’s not always easy to calculate the value of a modified car which is why your insurer may offer “agreed value cover” or “salvage retention”.
With agreed value cover, you agree a set value with your insurer. Your insurer will then pay out this amount if your modified car is stolen or written off, regardless of its original market value.
With salvage retention, you can choose to buy back your car from your insurer if it’s written off. Cars are written off when the repair costs are greater than the cost of replacing the car.
The most expensive car modifications to insure
Some modifications are riskier than others which means they are more likely to increase your car insurance premium.
To give you an idea of the most expensive modifications to insure, we’ve compared the cost of a car insurance policy without modifications against the cost of the same policy once certain modifications have been added.
The quote without modifications came to £280.50 per year, and the table below shows the five most expensive modifications that we looked at:
| Modification | Price | Percentage increase (from original quote) |
|---|---|---|
| Chipped engine system | £430.70 | 53.5% |
| Non-standard paintwork | £419.80 | 49.7% |
| Rear spoiler | £385.90 | 37.6% |
| Wider wheels | £370.90 | 32.2% |
| Bonnet bulge | £351.80 | 25.4% |
Yes, if the modifications you’re making improve your vehicle’s security and/or safety and could reduce the risk of an accident, your insurance premiums may be reduced.
Modifications that could affect your insurance in a positive way include:
There are a number of steps you can take to reduce the cost of modified car insurance:
If you’re buying a brand new car from a dealership and have paid extra for certain modifications, it’s unlikely your car insurance premium will be significantly affected. This is simply because the modifications were fitted by the manufacturer itself.
However, if you’re buying a used car that has been modified by someone else, it’s important to find out exactly what modifications have been made so you can pass this information onto the insurance provider. The insurer will want to know about every modification made to the car in order to properly assess its risk and calculate the insurance premiums.
You’ll need to check if your insurer will cover the modifications that have been made and be prepared for your premiums to increase if they relate to the look or performance of the car. If, on the other hand, the modifications enhance the security of your car, you may see your premium drop.
Yes, it’s important that you tell your insurer as soon as possible if you are planning any modifications to your car. That way you can check whether your insurer is still willing to offer you protection or whether you will need to find specialist car cover from elsewhere.
As each insurance provider will have its own guidelines around modifications, contacting your own insurance provider is the only real way of ensuring your protection remains in place at all times. If you don’t tell your insurer about any modifications, you risk invalidating your cover.
You don’t have to, particularly if you’re only making small modifications such as upgraded alloy wheels. However, if your modifications are more substantial, seeking out a specialist insurer can be beneficial as it may have more knowledge about the modifications made to your car or the modifications you plan to make. Specialist providers can also offer important cover benefits as standard that other providers only offer as optional extras.
Some specialist insurers of modified cars will look at the value, power and driver’s experience when calculating the insurance premium rather than the cosmetic or mechanical changes. Do some research to see which insurer can offer you the best cover.
You can, but you must inform your insurer about the modification as soon as possible – don’t wait until it’s time to renew. You may have to pay extra for your premiums as a result of the modification so it’s worth considering this carefully before going ahead with any changes. You may also have to pay an admin fee.
In most cases, modifications are likely to increase your insurance premiums, not lower them. However, if the modifications to your car increase its security or help you to drive more safely, you may see a reduction in the amount you pay for car insurance.
If you don’t declare car modifications to your insurer, you could invalidate your cover and your insurer may refuse to pay out if you later make a claim.
Classic cars are often modified by their owners, but other popular cars to modify include the VW Beetle and the Mini, the Ford Fiesta and the Mazda MX-5.
Car modifications should always be considered carefully. If you’re planning to make any changes to your car, no matter how small, it’s always worth talking to your insurer first to see how it could impact your insurance costs. Smaller, more popular modifications are more likely to be covered by standard car insurance. However, if you plan to make more substantial changes, such as installing a turbo engine, you may need to approach a specialist insurance provider.
| Response | 55+ | 45-54 | 35-44 | 25-34 | 16-24 |
|---|---|---|---|---|---|
| Tinted windows | 5.26% | 12.87% | 17.37% | 26.09% | 30.1% |
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