Do Modifications Affect My Car Insurance?

If you enjoy modifying your cars and wish to do so, you should be aware that these alterations significantly affect your car insurance prices.

These modifications could range from a modest adjustment to a complete makeover of your vehicle. Your annual car insurance premium may fluctuate due to some changes you make to the car.

Therefore, consider any potential expenses you may incur when modifying your vehicle.

How do you modify a car?

Understanding what constitutes a modification might be challenging in a car insurance policy.

Any alterations you make to your car after purchase from the manufacturer in its original state can be a form of car modification, but these are not the only ones.

The term ’modification’, as used in car insurance, refers to anything that has changed how your car looks or operates. It also refers to the additions that your automobile dealer may provide as options. So, read the terms & conditions of your car insurance to ensure smooth sailing in the event of an accident or theft claim.

The good news is that manufacturer changes are usually market-accepted and meant to be compatible with the car’s specs.

What changes impact your vehicle insurance rate?

  1. Adjustments to the mechanics and engine
  2. The danger of an accident may rise as a result of modifications made to improve engine output and accelerator response.
  3. Overtaking, driving at a more incredible speed, and other accident-prone behaviours are involved in traffic accidents. So, adding a supercharger or turbo might raise your insurance cost.
  • Accident risk: Insurance companies view alterations to your car’s appearance and functionality as a higher accident risk. These alterations include new engines, body kits, spoilers, sports seats, etc.
  • Restriction and Suspension: If you upgrade your car’s suspension and brakes, its performance on the road can also alter. The insurer should know about any such modifications.
  • Wheel alterations: The primary reasons for changing a car’s wheels are to improve its appearance and value.
  • Vehicle interior: You must let your car insurance policy provider know if you want to change the vehicle’s interior, including but not limited to the steering, pedals, sound system, seats, etc.
  • Paintwork: Changing the paint on your car can significantly alter how it looks. Adding intricate racing patterns and motifs can radically transform your car’s appearance.
  • Unusual engine replacement: Your car’s engine is critical in determining your car insurance rate. Use a car insurance calculator to get a clear understanding of the situation and prices. Adding a non-standard machine to your vehicle may undoubtedly be one of the most significant changes you make.

What changes won’t have an impact on your auto insurance?

If a change reduces the chance of an accident or theft, it does not harm the premium. For instance, parking sensors aren’t considered modifications by insurance companies because they shield the vehicle from potential harm during reverse parking.

Why disclose the modifications to your car?

You must disclose every modification you make to your car as the policyholder. Get your vehicle checked out by a mechanic if you’re buying a used automobile. Even if the changes were unintentional, failing to declare them could result in the denial of your application and cancellation of your insurance.


Minor adjustments might not significantly raise the premium of your car insurance policy. However, some noticeable changes affecting the vehicle’s performance may cause car insurance prices to rise dramatically.

It is advised to notify the insurance company of such alterations as soon as possible rather than waiting until the last minute to avoid extra trouble when processing your claim.

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.