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An Insight into The Impact of Car Modifications on its Insurance

Most of us are obsessed with one thing or the other, be it clothes, fashion, video games or just about anything. Similarly, many car owners are obsessed with their cars and pamper it just like their children. They may buy a standard car but do not hesitate in making modifications to it to upgrade it to match their style.

Unfortunately, what most do not realize is that any modification in the car does impact your car insurance. This fact makes it essential that you evaluate any modification to your car before executing it. Here, we walk you through a few major modifications to your car and its impact on your car premium and insurance.

Defining car modification

Car insurance terminology has a clear definition of car modification. For them, it is any changes made to the car to change its looks or performance than that sold by the manufacturer. These modifications include the extra changes you purchase from your dealer when you buy a new car.

Modifications that impact your car premium

Foremost, we look into car modifications that can make your Car Insurance Premium to either go up or down. Stay hooked!

  • Engine and mechanics modifications


Any modifications done to the car engine to change the performance of the car like accelerator speed is likely to make your car risk go high. Given that, any changes like changing your engine to a non-standard engine like turbo, supercharging, etc.; any exhaust system changes or even to air filters are likely to get your car premium to hike.

  • Brakes and suspension

The control of the car essentially lies in its brakes. Hence if you are making any changes and modifications to your car brakes and suspension to increase its speed; the premium is likely to hike.

  • Wheels


People often replace standard wheels with a flashy and eye-catching wheel, racing tyres, etc.  to enhance the look and style of your car. According to the insurance company, it is likely to increase the risk of car theft and may get your car insurance premium to shoot.

  • Car interiors


Modifications to the car interiors are a common enough occurrence. Some of the most popular interior car modifications include changing the steering, pedals, car seats, upholstery, etc. Most of these increase the risk of theft and thus spike your premium amount.

  • Bodywork


Making changes in the body of the car to enhance its looks is common enough. For instance, many add a bigger bumper to increase the sporty look of the car. The changes in the front and side skirt is also common. All these compromises the safety of the car and thus these are likely to raise the premium amount.

  • Paintwork


It is a grey area with the car insurance company. If you are doing simple paintwork to your car like changing its colour from white to blue or grey or any other colour; it may leave the premium amount unaffected.

However, if you are going for exotic and flashy paints with logos and racing graphic designs; it is likely to make your car stand out and thus increase its premium.

  • Car stickers or decals


It is again a grey area with the insurance companies. For few companies, it is a minor change that does not impact the car in any way and thus the premium amount remains unaffected. But few companies regard it as a factor increasing the risk of theft and thus make increase the premium amount. Hence, it is always advisable to check with the insurance company about the impact of your chosen decal.

  • Miscellaneous car improvements

Several other changes might make the premium amount to go up. It includes changing fog lights, installing accent lights under the car, stylish ornaments on hoods, improved stereo equipment, tinted windows, etc. All these modifications cause an increase in car insurance premium amount.

  • Anti-theft devices


If you are installing an approved anti-theft device or any other security systems which enhance the security of the car; your car premium amount is likely to go down. Security devices like immobilizers, additional safety locks, tracking devices, etc. might actually make your premium amount to go down. Modifications like parking sensors and tow bars are regarded as good measures but few insurance companies lower the premium amount for it.

Final takeaway


As evident, there are only a few minor modifications that do not impact your car insurance. Most of the car modifications increase your car premium amount. Only security systems tend to decrease the premium amount. Hence, you must always inform your insurance company about any modifications and understand its impact. Non-disclosure can prove counter-productive and can even leave your insurance policy null and void.