Do car modifications affect your insurance?

24th Jun, 2024

If you’re a bit of a petrolhead, as many of us are, sometimes it can be tempting to modify your car – especially if you’ve got something particularly cool in mind for it. And while car modifications don’t automatically make a car illegal to drive on public roads, there’s no denying that they can make things a little bit more complicated, legally. For starters, it can have major implications for your insurance – and possibly even make it much more expensive (or even impossible) to insure. And since you may not be ready to scrap your car just yet, here’s what you need to know!

How do modifications affect your insurance premium?

Basically, it all comes down to assessing risk. That’s the basic metric by which insurers calculate your insurance premiums – the higher they deem your risk to be, the more they’ll charge you to offset their chance of paying out. That’s essentially why car modifications heighten your premiums – because they’re seen to heighten the risk.

For example, performance enhancements, such as engine tuning or suspension upgrades, can increase the likelihood of accidents by altering the vehicle’s handling characteristics or boosting its speed capabilities. These changes often result in higher premiums to cover the potential cost of more frequent or severe claims. Similarly, aesthetic modifications like custom paint jobs or body kits can enhance the vehicle’s appeal but may also attract thieves or increase repair costs in case of damage.

Interior modifications, such as installing custom seats or advanced entertainment systems, can impact safety features or distract the driver, potentially raising the risk of accidents.

Not every modification is automatically guaranteed to boost your premiums though. Security modifications, such as alarm systems or immobilizers, mitigate the risk of theft, which may result in lower premiums as insurers offer discounts for enhanced security measures.

Examples of the most common car modifications

There are almost countless specific car modifications, but some are lots more popular than others. Aftermarket exhaust systems are amongst the most sought-after upgrades for example, prized for their ability to increase horsepower and produce a deeper, more aggressive engine note. Below, we’ve grouped some of the most popular engine modifications into a range of key categories. These include…

• Performance enhancements. Modifications like engine tuning, turbocharging, or suspension upgrades can increase your car’s power and speed. Insurers may view these changes as increasing the risk of accidents, leading to higher premiums.
• Aesthetic modifications. Changes to the appearance of your vehicle, such as custom paint jobs, body kits, or tinted windows, can also affect insurance costs. While these modifications may not directly affect performance, they could impact the vehicle’s value and attractiveness to thieves.
• Interior modifications. Upgrades such as custom seats, entertainment systems, or additional gauges can enhance comfort and functionality, but might alter the vehicle’s original specifications. Insurers may need to adjust coverage to reflect these changes accurately.
• Security modifications. Installing security features like alarm systems, immobilizers, or tracking devices can reduce the risk of theft. Some insurers may offer discounts for such enhancements, as they lower the likelihood of claims related to vehicle theft.
• Functional modifications. Modifications that improve vehicle functionality, such as tow bars, roof racks, or camper van conversions, can also affect insurance premiums. These changes may alter the vehicle’s handling and safety features, which in turn can raise insurance premiums.

What kind of effect do modifications have on insurance?

Well, it’s worth noting that any increase in insurance premiums due to car modifications can vary widely depending on factors such as the type and extent of modifications, the insurance provider, the driver’s profile, and the specific policy terms.

To provide a general idea though, you might expect a premium increase of anywhere from £100 to £500 or more per year for significant modifications that enhance performance or increase the vehicle’s value. Cosmetic modifications or minor changes might result in more modest increases, potentially ranging from £50 to £200 annually. Again, we should reiterate that these figures are approximate, and can vary significantly based on individual circumstances and insurance company policies.

So, the question you really need to ask is: are they worth it? And that’s a question that only you can answer!

As for us, we’ll keep doing what we do best, and that’s giving you the very best price when you scrap your car. All you need to do is enter your car reg and postcode into the fields on our site, and we’ll get you an instant online quote before you can say cash for cars. It only takes a few seconds. Curious to find out how much your car is worth?