When participating in car club forums and enthusiast groups, we’re often asked what modifications affect Car Insurance and which ones need to be reported to insurers. To clear things up, we thought we’d share some advice.
What counts as a modification for Car Insurance?
A good way to think of a modification is any change to your car after it leaves the factory. Modifications usually fall into two main categories: performance (which includes handling) or cosmetic.
Insurers vary in their approach to modification. Some don’t allow any changes, others charge for all mods, while some only care about performance changes. Others don’t charge at all if the mods fall within certain limits.
So, what modifications affect Car Insurance? It’s always best to check. Declare every change to your insurer and let them decide what matters. Failing to disclose modifications – whether you think they’re important or not – can result in your policy being voided, especially if you make a claim.
Do insurance companies check modifications?
Yes, insurance companies can and do check for modifications, particularly when a claim is made. They may inspect your vehicle to verify the condition and whether any undeclared modifications have been made. If insurers find an undeclared mod, it could invalidate your policy, leaving you unprotected in the event of a claim. This is why it’s always safer to disclose every change, even if you think it’s minor.
The Consumer Insurance (Disclosure and Representations) Act 2012 puts the onus on insurers to ask about modifications at the start of a policy or at renewal. However, your policy wording may require you to inform your insurer of any changes during the policy term. That’s because some modifications could increase the risk of accidents or theft. Again, it’s best to volunteer the information.
How much do modifications add to insurance?
The impact of modifications on your insurance premium depends on several factors, including the type of modification and the insurer’s policies.
Performance mods, such as engine upgrades, tend to increase premiums the most as they may raise the risk of accidents.
Cosmetic changes, like new wheels or paintwork, tend to add less to your premium but can still affect your cover.
On average, modifications can add anywhere from 5% to 50% to your premium, depending on how they alter the vehicle’s value, performance, or safety. Always check with your insurer before making changes to avoid surprises later.
For more information on how modifications can impact your premium, read our detailed article on car modification and insurance premiums.
Is Modified Car Insurance available?
Yes, some insurers cater to modified cars. Many understand that not every change is about squeezing out more horsepower. Sometimes you just want to improve fuel efficiency or enhance stability.
If you’ve made significant performance upgrades, adding safety modifications such as improved suspension or stronger brakes might work in your favour. In these cases, insurers will often replace your mods like-for-like if your car needs repairs, so it’s always best to give them the full list.
It’s also worth telling your broker about any modification plans for the year ahead. They might need to place you with an insurer that can accommodate your mods from the outset. Failing to plan for this could mean your cover stops mid-term, and you lose your no-claims bonus. It also helps you to budget for the extra cost of adding mods before going ahead.
In short, understanding which modifications affect Car Insurance and being transparent with your insurer will avoid any surprises with your policy.
Get a quote for Modified Car Insurance.
Need help insuring your modified car?
We’ve helped owners up and down the country to arrange policies for all sorts of mods, from performance to security. Speak to our team today to find out more and arrange a quote.
