Your car can be modified to increase performance or improve aesthetics. Everything from installing new floor mats to updating the upholstery could be included. Many people, however, need to be made aware of how car modifications affect car insurance. This is due to the perception that modified cars are riskier than standard vehicles. In addition, it has been found that teenagers are frequently the ones who change cars. Insurance companies think that these drivers often drive carelessly.
Changes That May Impact Your Car Insurance Policy
The following details how different car modifications will affect how much your car insurance will cost:
- Engine Modification: People frequently modify a car’s engine to improve performance. These modifications enable the vehicle to accelerate faster and travel faster. Even though engine upgrades are highly desirable, you might discover that your car insurance premiums go up. As your car’s performance increases, it becomes a more dangerous machine that might tempt you to drive recklessly and overtake other vehicles.
- Paint Job: You might believe that changing the paint on your car is a minor modification to your car insurance policy, but it also necessitates notifying your insurer. Particularly drastic modifications, like eye-catching or racing designs, raise your car insurance premium because they present more theft risk and other dangers.
- Wheel Modification: If you’re considering replacing the stock wheels on your car with wide tyres or alloy wheels, be aware that your insurance premiums could go up by 8% to 18%. This results from the high resale value of expensive wheels, making them desirable targets for thieves. By making your car’s wheels more appealing to thieves, you can increase the likelihood that it will be stolen.
- Interior Body Modifications: Usually reduce a car’s safety and raise the chance of sustaining significant damage in an accident. As a result, your car insurance coverage will cost more money. The policy premium will typically increase by 27% if you replace the seats in your car, and it may increase by 16% if you want to replace the dashboard and upholstery. *
- Non-Standard Engine Replacement: The insurance company determines a typical motor insurance policy premium for engines that are factory-installed based on the make, model, brand, and year of manufacture. The premium costs will be impacted if the original manufacturer’s engine is replaced with a non-standard one.
There is no question that the most essential part of controlling any vehicle is its suspension and brakes. As a result, the insurance provider will be alerted if you make changes to such crucial components as your car’s brakes or suspension because they will undoubtedly alter how well it performs on the road. Not all changes result in higher car insurance rates, though. For example, the likelihood of theft or a break-in is decreased by installing a tracking system or an ARAI-approved anti-theft alarm system in your vehicle.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.