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How do modifications affect car insurance premiums

modifications affect car insurance premiums

Keep in mind that some modifications affect car insurance premiums. Hence the reason why it’s essential for you to inform your insurance when undertaking car modifications. There are plenty of reasons for wanting to undertake car customization. After all, it’s one of the ways car owners are able to express their personalities.

Car customization also affects the vehicle’s value. Like when you decide to resell it or when you’re trading it in for another car at your dealership. For example, the VW Golf models modifications make the car more valuable. According to the automotive specialty equipment market association, $36 billion was spent on parts and accessories.

There are different car accessories that people use for car customisation. Most of these accessories have no effect on insurance. The vehicle customisation that has an effect on insurance is mostly the one that impacts safety. Either yours or the vehicles.

The vehicle’s safety is affected in terms of the higher probability of accident occurrence. Additionally, the vehicle’s aesthetic appeal to robbers amongst others. All of these things are a major concern for insurance companies.

Modifications that affect car insurance premiums may increase or lower the premiums. Let’s analyze the entire situation below.

Do aftermarket parts affect insurance?

There is the factor of aftermarket parts when it comes to car modification. Aftermarket car parts is such a broad subject that can’t be explored exhaustively within this article. But some of these modifications affect car insurance premiums positively (reduction) or negatively (increase).

Due to the expensive nature of the aftermarket parts wouldn’t it be really good for you to get extra cover? Insurance companies consider the amount you need for them to return your car to the original state. That also depends on what you’re covered for.

Regular insurance policy.

A regular insurance policy usually excludes the aftermarket parts. Insurers usually consider a number of things in regard to aftermarket parts like; augmented performance, chassis, tires, rims and value of paint work. Further, insurance companies place a car’s value on factory installations.

Supplemental coverage.

Most insurance companies offer a supplementary cover in case you choose to modify your car. This cover is usually around 10% of the price paid for the modification. The amount is meant to cover repair or replacement of the customisation.

There are a number of things you need to consider before modifying your car. And the insurance covers we just mentioned are amongst the first things to consider.

Car modifications that don’t affect insurance.

Seems like modifications affect car insurance premiums either by lowering or increasing them.  Usually, the insurance company considers the value of the vehicle. Meaning that a more expensive car will have a higher insurance premium. Further, it means any car modification that increases value also increases the insurance premiums.

After Insurers assess your vehicle’s value, they check whether any modifications that you have undertaken increase risk. They check whether the modification is fitted properly. Additionally, they ensure that the modification doesn’t increase risk of accidents.

Alternatively there are modifications that will increase the car’s safety standards. For example car sensors. These car customizations will lead to a reduction in insurance premiums. But this entirely depends on the car insurance cover provider. Hence the reason why it’s important to talk to your insurer when undertaking any modification. Other types of car modifications that won’t affect insurance premiums are inclusive of;

  1. Steering wheel lock.
  2. Dash camera.
  3. Catalytic converter cages.
  4. Alarms and immobilizers.
  5. Tracking devices.
  6. Parking sensors.
  7. Advanced driver assistance systems.

Does lowering a car increase insurance?

Vehicle height adjustment is a major issue to car insurance cover providers. According to these companies, the adjustment in vehicle height will be a risk addition factor. It puts the vehicle in the risk of steering problems, making it hard to clear road obstacles and steering problems.

Alternatively, a lowered car stands the advantage of higher fuel mileage and better aerodynamics. Further the vehicle’s risk of rolling over usually decreases.

Lowering the vehicle is usually taken as a method of improving aesthetics. It involves the replacement of suspension springs and the inclusion of aftermarket suspension kits. Vehicle height adjustment will involve bending leaf springs, shortening coil springs or adjusting the torsion bar key.

Ensure that you check the car insurance company’s exclusion policy. This will include all the things that won’t be covered by the policy. Check the “racing parts” exclusion to understand which parts won’t be covered. The car insurance company won’t pay for those damages. Further, consider whether the insurance will cover the full value or just a percentage of the damages.

Does color change affect insurance?

Due to the varying prices of vehicle paint jobs, it easy to assume that a car’s color affects the insurance premiums. Though this isn’t a direct consideration, because there are a number of other things that are involved in the valuation. For example, how old the vehicle is, make, model, year, Engine CC size and risk among others. For that reason, the color of the car doesn’t affect insurance rates.

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