Table of Contents
If parts of your car have been altered or upgraded since it first hit the road, you may need modified car insurance. Here’s all you need to know about insurance for modified cars, including which modifications count and how to get cheap modified car insurance.
What modifications affect car insurance?
Any addition or alteration to your car that means it has different specifications to how it rolled off the assembly line could be considered a modification for insurance purposes.
Some modifications may be designed to enhance its performance, such as engine, brake, exhaust or suspension upgrades. Others may aim to improve a car’s general appearance and functionality, such as custom paint work, an upgraded sound system or tinted windows.
Other popular modifications include body kits, spoilers, wheels, alloys, additional lights, and upgraded safety and security measures, such as alarms, sensors and cameras.
Cars may also be modified to help if you have a disability, perhaps through the addition of a ramp, or adapted pedals, controls and aids.
Are modified cars more expensive to insure?
Some modifications will make your car more expensive to insure. When setting car insurance premiums, insurers try to work out the likelihood that you’ll need to make a claim and the cost of fixing anything that is damaged or goes wrong. So if a modification increases your car’s value or potential repair costs, it could lead to a rise in the cost of cover, as could an upgrade that makes your vehicle more attractive to thieves.
Equally, any modification that increases the speed of your car, or that an insurer thinks makes it more likely you’ll have an accident, may also lead to higher premiums. For these reasons, costs are likely to rise even more if you’re a new driver or young driver trying to get insurance for a modified car.
However, much depends on the type of modification and the insurer. Certain alterations may not affect your premium at all, while some could bring the cost of cover down.
Whatever the modification you’re considering, it makes sense to check with an insurer first how it may affect your premium.
» MORE: Why is car insurance so expensive?
What modifications might reduce your car insurance?
If a modification makes your car more secure, suggests to an insurer you’ll be a safer driver, or lowers the value of your car, there’s the potential for insurance costs to come down.
So upgrades to your security, which may prevent your car from being stolen, such as a better alarm, an immobiliser or a tracking device, could result in lower premiums. Or the cost may fall if you add parking sensors to your vehicle, as you’re less likely to hit another car, or if you swap to a less powerful engine.
If you invest significant time, money, and effort into modifying your car, some specialist insurers may offer lower premiums, assuming you’ll handle the car with extra care and drive responsibly.
Similar often applies to classic car insurance, which can be cheaper than you’d think, because insurers expect the cars to be better looked after and driven less.
Do you have to declare modifications on car insurance?
It is important to tell an insurer about any modifications to your car. This applies if you buy a car that has already been modified, or if you make the modifications while owning the car yourself.
If you’re part-way through your current cover, and modify your car, let your insurer know in case it makes a difference to your cover.
If you don’t declare modifications, your insurance could be invalid, and your policy may not pay out if you make a claim. Tell your insurer about anything that changes the value, performance, appearance or safety of your vehicle.
How does modified car insurance work
Modified car insurance policies tend to work like other car insurance policies. The main difference is that they take into account any modifications and what they may mean for your car. For example, will replacement parts and repair be more expensive? Or is there a greater risk of theft?
As with standard cover, there are three main types of modified car insurance to choose from, each offering a different level of protection:
- Third party: In the event of an accident, third party car insurance covers damage to someone else’s vehicle or property as well as any injury, but doesn’t protect against damage to you or your car.
- Third party, fire and theft: This provides the same cover as a third party only policy but also protects your car against damage by fire or theft.
- Comprehensive: As the highest level of cover, fully comprehensive car insurance offers all the protection of third party, fire and theft, along with cover for your car against damage or loss, and your potential injuries.
It may seem logical that comprehensive cover would cost more than third party cover, but it isn’t always the case. That makes it important to always shop around for the right policy for you.
» MORE: Compare car insurance
Other types of modified car insurance
If your car’s modifications have significantly increased its value, you might want to look into policies with these features, commonly offered by specialist insurers:
Agreed value: when taking out the policy, you and the insurer agree on an amount that will be paid if your vehicle is written off or stolen. The idea is that the agreed value will better reflect the time and money spent on modifications, instead of the payouts based on the market value of a vehicle made under standard policies.
Salvage retention: this allows you to buy your car back if it is written off in an accident, giving you the chance to make further use of various parts.
How to get cheap modified car insurance
Some of the things that could help you get cheaper modified car insurance include:
Shop around
Whether you have a modified car or not, shopping around and taking the time to compare car insurance quotes is one of the main ways to save on cover.
Pay for cover annually
If you can afford to, it is cheaper to pay for insurance upfront and annually rather than making monthly payments, which include interest.
Opt for a higher excess
The higher the amount you’re willing to pay towards a claim yourself, the cheaper car insurance tends to be. Just make sure you’d be comfortable paying that excess amount if you had to.
Watch your mileage
Less time on the road usually means lower premiums. You’ll be asked to estimate your annual mileage when taking a policy out, so think carefully.
Improve your security
Fitting a tracker or an immobiliser can put thieves off and make your vehicle easier to find if it is stolen. These particular modifications may lead to cheaper premiums as a result.
‘Black box’ insurance policies
With black box insurance, a device in your car or your phone monitors how and when you drive, and sends this information to your insurer. If they feel you’re a safe driver, the cost of your cover could come down.
Add an experienced named driver
Adding a more experienced named driver to your policy, typically a parent, may help to lower the cost of your cover.
Choose add-ons wisely
Think carefully whether the optional extras you’re offered when taking a policy out are useful to you and worthwhile. Add-ons such as cover for keys and personal belongings usually increase your premium. Something like breakdown cover may also be cheaper if bought separately.
» MORE: How to get cheaper car insurance
Looking for a particular type of car insurance?
Not all drivers are the same. Whether you’re new behind the wheel, looking for short-term cover, or want something else, you can explore the different car insurance options below.
Car Insurance to Suit You
Finding the right type of car insurance for you is a must. Just as important is shopping around and comparing quotes to save where you can.
Modified car insurance FAQs
Yes, you can insure a modified car. It is a legal requirement to insure any car that will be driven on a UK road.
» MORE: How to check if a car insured
Criteria may differ between insurers, but typically a modified car will have been changed in some way so that its specifications are different to those originally declared by the manufacturer.
Modifying a car could increase your car insurance if the change increases the value of your car or the likelihood of you having an accident. Premiums could also rise due to a modification making your car more expensive to repair or more likely to be stolen. That said, modifications that improve the car’s security can lead to cheaper insurance.
Yes, insurers do check for modifications. This may happen when taking a policy out or if you make a claim. It’s important to be honest with insurance companies about any modifications to your car. Your policy could be cancelled or a claim not paid out if you don’t declare modifications.
A modified car can pass an MOT, though it is also possible for it to fail if it doesn’t pass the checks or meet the parameters set under an MOT.
Yes, there are specialist insurers which offer classic car insurance, including for older or collectible vehicles that have been modified.
Yes, insurance is available for young drivers with modified cars, though their relative inexperience as a driver, and the type of modification, could mean premiums are high.
» MORE: Young driver insurance
The best cover for a modified car will depend on the level of protection you want and the nature of the modifications. However, fully comprehensive insurance generally provides the greatest level of protection for any driver and their car.
Image source: Getty Images
About the Author
Dive even deeper
New Driver Car Insurance
What is Black Box Insurance, and Is it Worth it?
