Modifying your car not only gives you chance to stamp your personality onto your vehicle but also helps make it faster and safer. However, modifications come with their fair share of pitfalls, such as impacting the reliability of your car and even increasing your car insurance rates. Here’s how.
How to Get Insurance for Car Modifications
To insure the parts on your car that have been modified, you will require modified car insurance. It is a type of insurance that covers car modifications. Modifications or customizations, often known as aftermarket components, are extra elements that do not come from the factory.
A majority of standard insurance policies do not cover these modifications. However, by modifying your insurance policy, you may ensure that you have adequate coverage for your car, including aftermarket parts.
Insurance companies define car modifications differently. Modified car insurance is often a replacement-cost policy, which means it will cover the cost of the modified parts on your vehicle. This implies you may need to hire an appraiser to help you list and put value to your customized parts.
You and your insurance will almost certainly need to agree on the value of the vehicle. While this sort of policy may be more expensive than a conventional policy, it usually provides superior coverage.
Do Car Modifications Affect My Insurance Rates?
Typically, yes. Anything you add to your car insurance policy will almost certainly raise your premium. Your initial auto insurance coverage was most likely set together in accordance with the manufacturer’s factory guidelines. The potential repair expenses for a modified car will be more since the parts are more unique and, quite often, more expensive.
According to insurance companies, drivers who make modifications to their vehicles are more likely to file a claim. This is due to a number of reasons. The first one is that upgrades and expensive equipment installation frequently increase the possibility of theft. Thieves may find cars that stand out more appealing than normal ones.
Second, improving the performance of your vehicle increases the likelihood of an accident. If you install a high-performance engine, car insurance companies can assume that you intend to use it to its full potential. This implies you may travel at higher speeds. The same may be said about larger tires, which can potentially impact safety.
Types of Car Modifications That Won’t Affect Your Insurance Rate
Almost all types of car modifications can impact your insurance rates. A vastly improved car, for example, may significantly boost its value. Alternatively, a shinier, more attractive car is more likely to be broken into or stolen. Also, if you improve the car’s power and performance significantly, most insurers will consider the vehicle to be at higher risk for accidents.
Certain changes, however, will not affect your quote if they are expected to reduce the risk of an accident. Insurance companies don’t consider tow bars or parking sensors as modifications. It is because a car with a tow bar can be driven only at a reduced speed, and reversing with parking sensors reduces the likelihood of a crash.
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Winter tires are one type of car modification that has caused a stir in recent years. We’ve heard cases where some insurers increased premiums or even refused coverage to drivers who installed winter tires. However, this shouldn’t be the case any longer.
There are several modifications you can make that may result in lowering your premiums. Modifications that could help you save money are usually those that increase the safety or security of your car.
Installing airbags, seat belts, rearview mirror cameras, anti-theft gadgets, and crash and blind spot detectors can help make your car safer and reduce your insurance rates.
However, before making such changes, it’s usually a good idea to check with your insurance company. Otherwise, check to see whether your auto insurance carrier gives other discounts for things like telematics, paying the premium ahead, or maintaining a clean driving record.
Common Customizations That Will Increase Your Insurance Rates
Most types of car modifications will increase your insurance rates. The following is a list of modifications that can increase your premiums.
- Custom paint, murals, designs, or decals
- Electronics such as a custom stereo, PC, or TV
- Custom tires, wheels, and spinners
- Custom spoilers, louvers, scoops, and grilles.
- Turbochargers, blowers, and strokers
- Winches or anti-roll/anti-sway bars
- Added chrome
- Auxiliary lighting
- Suspension lifts and hydraulics
Wrapping Up
Any modifications that you make to your car may increase your car insurance premiums. Your auto insurance coverage was most likely put together according to the manufacturer’s factory guidelines. The potential repair expenses for a modified car will be higher since the parts are more unique and expensive. However, by knowing what modifications can impact your premium rates, you can save money. Certain changes will not affect your quote if they are likely to reduce the risk of accidents. We have provided a comprehensive explanation of how, what, and what could not impact your insurance rates after you make modifications to your car. Even so, it is a good idea to check with your insurance company before making any changes.
Renée Martin is a travel and car expert who focuses on road and air travel in the U.S. For the past 6 years, she’s been helping make driving and trip planning easier and budget-friendly for everyday travelers.
