Why do modifications affect my car insurance?
Modifications affect car insurance because upgrades and ‘improvements’ generally make a car more desirable. And when something’s more desirable, there’s the increased chance of theft or malicious damage.
A modification is anything that changes a car from its original state when it rolled off the factory floor. It doesn’t even have to be a modification that enhances the car’s performance, it could be cosmetic – like painting flowers on the side or adding some snazzy go-faster stripes.
Car insurance is as unique as the policyholder. Lots of things affect car insurance premiums such as driving history and car type. Bigger, more powerful cars are generally pricier to insure because of their higher value, which means they’ll cost insurance providers more to replace if they’re written off. It’s the same principle behind modified cars – if upgrading them increases their value it follows that they’ll cost more to fix or replace. Car adaptations also mean parts could be harder to come by, again, bumping up the cost to the insurance provider in the event of a claim.
Clearly, there’ll be some modifications that really won’t affect the desirability of your car or your premiums – like fluffy dice or a nodding dog, and not all changes will hike up the price. Surprisingly, there are even some modifications that could actually reduce premiums – such as an approved security system – find out more in our simples guide: What modifications won’t increase my premiums?