Does Car Modification Affect Your Insurance Policy?

Does Car Modification Affect Your Insurance Policy?

Have you ever considered modifying your car? Fitting your car with flashy headlights or upgraded engines?. How about replacing those ordinary wheels with some vigorous alloy wheels so that the car’s performance or appearance changes? Although the idea of customizing your vehicle may sound tempting, we often forget to consider one thing. We ignore the factor that a small modification can raise the cost of your insurance premium. If you consider or evaluate the factors involved in determining your auto insurance cost; modifying your car is essential in contributing to the car insurance policy.

This modifying car factor alone can significantly affect your car insurance coverage irrespective of the age, model, type of car, driver’s driving experience, and gender. It doesn’t matter that you have modified your vehicle to enhance your car features or performance. Once you modify your car, be ready to increase your premium amount.

What Is Car Modification?

Modifying your car can be defined as any small or large alteration you make to the car’s factory model to look appealing, different, or increase efficiency. Also, the insurance premium cost of the modified car is comparatively higher than the premiums of a classic car—the risk of theft or difference in efficiency increases due to modification. Hence, increasing the premium costs since your car insurance provides coverage to these risks.

For instance, if you changed to a turbo engine, it might increase your car’s speed, but it also increases the chances of ending in an accident.

Consider another example; you changed your car wheels to strong alloy wheels. Your car looks attractive, but it has also increased the possibility of theft.You are thus aggravating the risks involved.

If you own a modifying car, your insurance agent will consider all these factors and possibilities of risk, hence offering you high insurance premium costs. On the contrary, car modifications such as installing parking sensors might reduce the insurance premium costs as it mitigates the risks of hitting while reversing the car.

What Type of Modifications Can Increase Your Car Insurance?

Car modifications that surge the risks of car accidents or theft directly affect the insurance premium cost. The following are the common types of car modifications with their effect on car insurance.

Car Interiors

The interior of the car includes many parts. You should inform your insurance company if you modify your car’s steering wheel, pedal, sound systems, or even your car seats. The quality or wear and tear for every modification vary hence affecting the costs of insurance premium too.

Wheel Modifications

The wheel modification gives your car a new and attractive look, but it might change your car’s value. It is crucial to inform such modification to your insurance company as it will affect the insurance premium. Usually, wheel modification upsurges the risks of theft, directly impacting the premium amount.


One might think that changing your car’s color is the safest type of modification anyone can think of, yet you are wrong. You must inform your insurance company specifically if the kind of paint is more than just an ordinary color, such as an eye-catchy or racing design. Such designs change your car’s look and make it stand out in the crowd to increase the chances of theft. Because of the increasing risks, your insurance premium costs also increase.

Therefore, before making any modifications to your car, make sure you inform your insurance agent in advance about it. Your insurance agent will calculate the insurance premium increase for you to make the right decision about modification. Remember, if you don’t inform your insurance company about your car modification, it can harm your insurance policy.