Modified Car Insurance – Forbes Advisor UK

Modifying a vehicle to make it faster or safer will have an effect on the auto insurance premiums it attracts. But how exactly does it work? Here’s everything you need to know about modified auto insurance.

Premiums and risk

The price you pay for auto insurance reflects the likelihood of you making a claim. For example, if you live in an area with higher than average crime rates, or if you park your car on the street and not in a driveway, it will likely increase your premiums.

Likewise, if you drive an expensive, powerful car, you are likely to pay more for coverage than if you “recirculated” with a small engine.

In other words, the more likely you are to cost your insurer in making a claim – and the more likely they are to have to pay for repairs or a replacement – the more insurance premiums they will charge you to cover the claim. additional risk.

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How the changes affect premiums

But whether making changes to your vehicle increases or decreases the risk of having to make an insurance claim, it depends on the nature of those changes.

For example, aftermarket security systems such as electronic immobilizers or car alarms make it more difficult to steal a vehicle. So, since the risk of you filing a theft claim is reduced, insurers can offer cheaper coverage in return.

On the other hand, mechanical changes like replacing your vehicle’s transmission (which provides power to the wheels) will increase its acceleration or top speeds. As you are now driving a more powerful car, this could move you to a higher insurance group which will also see premiums increase.

Even cosmetic changes like tinted windows, alloy rims, or vinyl siding can have an effect on your insurance as they could make your vehicle more attractive to thieves.

Changes to facilitate access for disabled drivers or passengers such as tail lifts, ramps and electronic accelerators are also considered changes that may impact the cost of your coverage and, like any change, must be reported to your insurer.

Inform your insurer

Whether you are buying a car that has been modified or making modifications to a vehicle that you already own, you should let your insurer know what has been done to the vehicle.

Buying an insurance policy is an agreement based on good faith. The insurer agrees to pay claims, if any, provided you have provided complete and accurate information about yourself and your vehicle.

If you were to make a claim without disclosing the modifications to your vehicle, the insurer could reasonably reject your claim on the grounds that you were not honest in your claim. In this case, you will have to pay for the repairs or replacements out of pocket.

It’s best to speak to your insurer before making any changes to find out if your current policy will cover the changes or if you need to extend your coverage.

Some modifications, such as colored lights under the body, may be illegal to install on your car. If your insurer refuses to take charge of your changes, it also reserves the right to terminate your contract if you decide to make them anyway. Canceling a policy can make it more difficult to find affordable coverage in the future.

Certain changes must be reported to the Driver and Vehicle Licensing Agency (DVLA) by updating section 7 of your vehicle’s V5 document – which you should have received when purchasing the vehicle.

The types of changes that the DVLA would be interested in would be things like changing your car’s color, displacement (CC) or fuel type, for example converting to liquefied petroleum gas (LPG).

Keep costs low

If you’re determined to make changes to your vehicle and understand that it could mean paying more for coverage, there are other ways to lower your costs.

The first stop is a price comparison service to find out which insurers are offering the best price on the coverage you need. Insurers have just been banned from offering new customers lower premiums than existing customers for the same coverage, so they can no longer use this tactic to compete with other insurers.

Therefore, insurers may need to make their overall pricing more competitive if they want to increase their market share, and you can take advantage of that.

If you drive less because Covid restrictions mean you’re working from home, full-time, or part-time, remember that your annual mileage will likely be lower than usual – and that could save you money. silver.

If you can, paying your premium for the year up front rather than in monthly installments will be cheaper since there is no interest to pay.

Increasing the amount you’re willing to pay voluntary deductible to make a claim can also lower your premium. Just make sure you’re prepared to pay it on top of your mandatory deductible.

Compare auto insurance quotes

Choose from a range of policy options for affordable coverage that’s right for you and your car.

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