Top Ten alterations that will inflate your modified car insurance premium
One of the most frequent questions that people ask us is, “what can I do to keep my insurance costs downs?” But sometimes, the more pertinent question to ask, “What are the current factors that are driving up the cost of my car insurance?”
One of the main factors which will increase the cost of your insurance, regardless of your age, gender or driving experience, is modifications to your vehicle. These might be performance enhancing modifications, but they could equally be something a little tamer.
Defining car modification
A modification is simply an alteration to your vehicle from its original factory specifications. Modifications are made for a variety of reasons, from the improvement of engine performance to the addition of functionality and purely cosmetic and aesthetic enhancements.
While there’s nothing wrong per-se in modifying your car, you should be mindful of the impact that they may have on your car insurance. And, it should also be noted that it is vital that you declare any modifications to your insurance company, as your policy is likely to be voided otherwise.
Why will modifications increase the cost of my car insurance?
Two identical vehicles with factory settings, driven by the same person, will cost the same to insure because the amount of risk perceived by the insurance company is the same. But once you start making modifications – whether adding parts, taking them away or merely changing them – you change that level of risk. Modifications generally represent a higher amount of risk for insurance companies because they can, in theory, increase the risk of accident, or the threat of the vehicle being stolen, depending on the type of modification.
To help you understand a little more about the effects that mods can have, here we present the top ten modifications that push up your car insurance.
Top ten modifications resulting in insurance cost increases
Moneysupermarket.com recently produced an analysis of 2.3 million modified vehicles in the UK, and calculated from that the amount that each type of modification will increase your insurance costs by. From this, we have extrapolated the top ten across all categories of modification, based on the percentage increase in insurance costs.
1. Turbo/super-charging/ nitrous oxide (132%)
It should perhaps come as no surprise that the modifications that can have the greatest impact on the cost of your car insurance are the ones that are intended purely to increase the power output of the engine, the acceleration and top speed of the vehicle. This is because the faster that you go and the harder you accelerate, the more likely you are to potentially be involved in a road accident.
Not only that though, insurance companies generally perceive those motorists who drive cars with these modifications to more actively engage in risky activities such as speeding and frequent overtaking. For these reasons, adding a turbo, supercharger or nitrous oxide to your vehicle may more than double the price of your car insurance policy.
2. Wheelchair clamps, lifts, straps and winch (69%)
At the opposite end of the spectrum, making a vehicle wheelchair accessible can also have a major impact on the cost of insurance. Though it may seem initially unfair that those in wheelchairs or who transport people with mobility problems should have to pay higher insurance premiums, there is some sense in this. By modifying the vehicle to be wheelchair accessible you are effectively increasing its value substantially, and so the cost of insuring it will also rise correspondingly.
In addition to this, in the event of an accident the vehicle will cost more to repair because of its specialist adaptations, so increasing the payout cost of the insurer.
3. Bonnet ‘bulges’, flared wings and wheel arches (66%)
While bonnet bulges, flared wings and similar parts may seem like purely cosmetic modifications, they are also structural modifications which may affect the aerodynamics and thus handling of the vehicle. On top of this, the insurance company has no guarantees that such modifications have been carried by a reliable mechanic or fitter, and how safe and secure they are, so they are seen as an increased risk.
Such parts can also add significantly to the overall value of the car, the cost of repairing it, and to the likelihood of it being stolen.
4. Modifications to transmission or gears (63%)
Altering the transmission or gears of a vehicle is to change it dramatically from its configuration when it came out of the factory. The risk represented by a standard vehicle and an identical vehicle with a modified gearbox is not the same, and so the insurance cost is not the same either. Modified gears and transmissions may be more costly, complex and time-consuming to repair, while they also increase the cost of a payout to the insurance company in the event that the car is written off.
Gear and transmission modifications are also frequently performance enhancements, which will affect the acceleration capabilities and overall top speed of the vehicle. This again will increase the risk of an accident occurring, and the types of drivers who fit such modifications are generally perceived by the insurance companies as being more prone to engaging in risky driving behaviours which might result in an accident.
5. Hand controls (57%)
While many of the modifications discussed here are purely cosmetic or performance-related enhancements which are in no way ‘necessary’ to the vehicle or its driver, some modifications come from necessity. For drivers who have limited use of their legs or feet, the adaption of the vehicle to have hand controls for acceleration and braking is one such modification.
The reason for the increase in insurance cost for vehicles with hand controls is not because they are perceived as being more difficult to use or more likely to result in an accident, but instead because of the substantially increased cost of repairing or replacing the car and its hand control system in the event of a claim. Because the standard payout for the vehicle at the normal market value would not cover the cost of these repairs, the cost of the policy is greater to account for this.
6. Complete body kit and panels (57%)
Although often sold and fitted as one complete kit, body kits are in fact a collection of modifications comprising a number of different exterior parts. Hardly surprising then that they can increase the cost of your insurance premium by more than half. Body kits usually consist of cosmetic enhancements such a spoilers, front and rear bumpers, skirts, guards and scoops, while panels made of fibreglass and other materials are also frequently used to modify the appearance of the vehicle.
A car fitted with a body kit will cost more when it comes to insurance for a number of reasons. Firstly, the often substantial cost of the body kit itself increases the value of the car, and so the cost of an insurance pay-out in the event of a claim. Secondly, it may increase the attractiveness of the car to thieves, adding substantially to the risk of claim being made on the policy. Thirdly, though predominantly cosmetic, the substantive nature of the modification may significantly affect the handling and aerodynamics of the vehicle while the potential for improperly fitted parts may increase the risk of claims made by third parties struck by parts that come loose.
7. Roll bars/ roll cages/ seat removal (41%)
One could perhaps argue that roll cages and roll bars are designed to make the vehicle safer and protect its occupants in the event of a crash, but the fact is that their main association is with racing (particularly rally racing). Put simply, when insurers find that you have fitted these, they will often question your assertion that you are only going to use it for going to work and the shops. In addition to the perception that the car may be used in risky situations such as racing, the value of the equipment will also push the overall value of the vehicle up.
While most of the modifications discussed here involve the addition of parts to the car, when removing key parts you should also notify your insurance company. There are a number of reasons why you might remove one or car seats, such as for allowing more space for transporting cargo, or reducing the weight of your car if you use it for track days or similar. Whatever the reason it is vital that you tell your insurance company, as you are significantly changing the vehicle from its original state – ie there will be a different number of passengers, therefore a different quantity of risk.
8. Uprated brakes (36%)
The brakes of a vehicle are amongst its most critical parts, and so modifying them in any way will affect the assessment of risk carried out by your insurer. ‘Uprated brakes’ are high-performance brakes which deliver more stopping power. While from a certain perspective it could be possible to perceive better brakes as safer and therefore less of a risk to the insurance companies, this is not the way that they see it.
One of the most common reasons for upgrading brakes is because the power output or acceleration of the car has also been upgraded – more power and faster road speeds require a greater amount of stopping power to slow the vehicle down or bring it to a stop. Driving at faster speeds is associated with a greater amount of risk, and so results in a higher insurance premium. Even if no other performance modifications have been made, when uprated brakes have been installed insurers will generally perceive that the driver will think that he or she can drive faster as well as being able to stop quicker.
As with the other modifications discussed here, the key principle in play is that by modifying an integral part of the vehicle, you have substantially changed the way it behaves and the risks associated with it, therefore it must be reassessed.
9. Specialised paint work (36%)
A new paint job might seem like a pretty innocuous modification that hardly warrants attention, but this too is something which you need to inform your insurance company about. In particular, specialist paint work – such as intricate designs, racing designs and colour shifting paint – can radically alter the look of the vehicle and even increase its value. This, to insurance companies, translates as a higher risk of theft, and so a higher risk of them having to pay out.
If you fail to inform your insurance company about your specialist paint work, you will of course not be covered for it, and even if your policy is not completely voided, your insurance will only cover the cost of a factory standard paint job.
10. Non-standard engine change or tuning (29%)
The engine of your vehicle is undoubtedly one of the biggest factors that will affect how much insurance you pay, and a ‘non-standard’ engine will inevitably result in a non-standard insurance risk and a corresponding increase in the policy cost.
When insurance companies calculate the amount that insurance should cost for a particular make and model of vehicle (without considering the driver or any other factors) , they assess the vehicle as a package. Cars are produced in factories to be identical to those that bear the same model number, and so they present a standard amount of risk across the many thousands that are produced. However if you replace the engine with one which is not found in that in post-factory package, or otherwise tune your engine to alter its performance, they must reassess the amount of risk that it poses is a special case.
Need advice on insuring your modified vehicle? Talk to Park Insurance
Got a modified vehicle or currently thinking of modifying your existing vehicle? Get in touch with Park Insurance to find out how your modifications may affect the cost of your policy, and get competitive quotes which will save you money. Remember, always declare modifications to your vehicle, even small ones, to avoid the risk of your policy being voided.