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Buying a car is exciting. But for many people, the real fun starts when they begin to modify it. You might want to add new wheels, change the lights, install a better music system, or give your car a sporty look. These changes can make your car look cool and feel more personal.
However, most people don't consider one important thing: car insurance.
When you make changes to your car, your insurance may also be affected. Your premium might go up, or in some cases, your claim might not be accepted if the changes are not reported to the insurance company.
So, does this mean you should not modify your car? Not really. You just need to understand how it works.
In this blog, we will explain in very simple words how car modifications can affect your insurance, what changes are okay, and what you should be careful about.
What is a Car Modification?
A car modification means making any change to your car from its original (company-made) design. These changes can be small or big, and are usually done to make the car look better, work better, or feel more comfortable.
Car insurance protects you from financial loss if something goes wrong. But when you modify your car, the risk can increase. Because of this, insurance companies become more cautious. For example, if you add a turbo engine or spoilers, your car may become faster, which can increase the chances of an accident. If you add expensive items like alloy wheels or fancy accessories, the risk of theft can also go up.
Insurance companies look at all these risks before deciding your premium (the amount you pay for insurance). This means some modifications can increase your premium. On the other hand, adding safety features like parking sensors can help reduce risk and may even lower your premium, as they help avoid accidents.
So, before modifying your car, it is important to understand how these changes can affect your insurance.
| Category | Modification | Impact on Insurance Premium |
|---|---|---|
| Engine and Performance | Turbo / Supercharger | Up to 132% increase |
| Nitrous Oxide System | Around 63% increase | |
| Non-standard Engine Change | Around 26% increase | |
| Exhaust System Changes | Around 25% increase | |
| Air Filter Upgrade | Small impact | |
| Body and Exterior | Bonnet Bulges / Flared Wings | Around 66% increase |
| Complete Body Kit and Panels | Around 57% increase | |
| Spoilers | Around 23% increase | |
| Tinted Windows | Around 16% increase | |
| Lights Addition / Changes | Around 12% increase | |
| Interior | Roll Bars / Roll Cages | Around 41% increase |
| Replacement Seats | Around 27% increase | |
| Upholstery / Dashboard Changes | Around 16% increase | |
| Brakes and Suspension | Upgraded Brakes | Around 36% increase |
| Suspension Changes | Around 25% increase | |
| Paint and Design | Specialised Paint Work | Around 36% increase |
| Stripes, Decals, Badges | Around 22% increase | |
| Wheels and Tyres | Broad / Wider Wheels or Tyres | Around 18% increase |
| Alloy Wheels | Around 8% increase |
Simple Tip: Modifications that increase speed, value, or risk usually lead to a higher insurance premium. Always inform your insurer before making any changes.
Which Car Changes Should You Tell Your Insurance Company About?
If you make any changes to your car, it is important to tell your insurance company. Here are the main types of changes you should always inform them about:
- Body changes If you change the shape or structure of your car (for looks or to carry more load), you should inform your insurer. This is because it can change how the car is used.
- Engine changes The engine is the most important part of your car. Any change to it can affect the car''s speed and power, so it must be reported.
- Brakes and suspension These parts are very important for safety. If you upgrade or change them, you should inform your insurance company.
- Interior changes If you add expensive items like a music system, better AC, or change things like seats, dashboard, or steering wheel, it can affect your insurance cost. So, always inform your insurer.
- Wheel changes Upgrading to bigger or better wheels can increase your car's value. This may also increase your insurance premium.
- Car paint changes If you go for special or designer paint, it can affect your insurance. So, it's better to inform your insurer.
- Modifications for disabled users If you make changes to make the car easier to use for disabled people (like special seats or automatic features), you should inform your insurer.
- Changes for sports or adventure use If you modify your car for racing, off-roading, or long trips, you must inform your insurance company, as this increases risk.
How to Get the Right Insurance for a Modified Car
Follow these simple steps to make sure your modified car is properly insured:
- Keep proof of all changes: Save all bills, receipts, and documents of the modifications. This helps the insurance company understand your car's new value.
- Choose the right insurance company: Some insurance companies understand modified cars better. Try to pick one that offers plans for customised vehicles.
- Inform your insurer about the changes: Always tell your insurance company about any modifications. Ask them to update your policy so the changes are officially included.
- Check your car's Insured Declared Value (IDV): After modifications, your car's value may change. Ask your insurer to update the IDV so you get the right amount in case of theft or total loss.
- Add extra covers (add-ons): You can choose extra protection for better safety, such as:
- Zero Depreciation Cover helps you get full value for parts
- Engine Protection Cover protects against engine damage
- Personal Belongings Cover covers items kept inside the car
Tips to Reduce Your Insurance Premium
Here are some simple ways to keep your insurance costs low, even if you modify your car:
- Install approved security devicesUse safety devices that are approved by ARAI (like anti-theft alarms or tracking systems). These devices make your car safer and reduce the risk of theft, so insurance companies may charge you a lower premium.
- Make useful changes, not just for looksTry to focus on practical modifications instead of only making your car look stylish. Changes that improve safety or comfort are better, as they usually have less impact on your insurance cost.
- Avoid high-performance modificationsDo not go for racing-style changes like engine upgrades or speed boosters. These increase the risk of accidents, and insurance companies may charge a much higher premium because of it.
- Keep proper records of all changesAlways keep photos, bills, and service records of any modification you make. This helps you prove the changes to your insurer and makes the claim process easier if something goes wrong.
Conclusion
Modifying your car can make it look better, perform better, and reflect your personal style. But it is important to remember that these changes can affect your insurance. Some modifications can increase your insurance premium, while others may not have much impact.
The key is to always inform your insurance company about any changes you make. Keep all bills, receipts, and photos as proof, and choose the right insurance plan for your modified car. You can also add extra covers like engine protection or zero depreciation to stay fully protected.
By making smart and safe modifications, keeping proper records, and updating your insurer, you can enjoy your customised car without worrying about losing insurance coverage or facing high costs.
FAQs
Yes, car modifications can affect your insurance. Changes like new engines, spoilers, or expensive accessories may increase the risk of accidents or theft. This can lead to a higher insurance premium or affect your claim if not reported.
Sometimes yes. If your modifications make your car faster, more valuable, or riskier, the insurance company may charge you more. Simple or safe changes may not increase your premium much.
Yes, insurance companies can check your car for modifications. They may ask for proof, like bills or photos. If you don’t tell them about changes and something happens, your claim may be rejected.
Not all modifications are illegal. You can make many changes, but some, like changing the engine beyond legal limits or removing safety features, can be illegal. Always follow rules and get approved modifications.
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