Modified car insurance

When it comes to car insurance, you never know what you’ll get. Your car insurance premium is determined by various factors, including the type of car you drive, your personal driving record, and where you live. As a result, you can expect car insurance rates to fluctuate each time you renew your policy.

The vehicle you drive has the biggest impact on your insurance premium. As a result, you shouldn’t be surprised that your insurance company wants to know if you drive a modified vehicle. If you plan to make modifications to your vehicle, you should reach out to your broker or insurance company right away. Making modifications without telling your insurance provider can impact your policy and result in you driving uninsured. Let’s learn about the impact a modified vehicle can have on your insurance rates.

Pros and cons of having a modified vehicle

Customizing your car can be a fun way to help your vehicle stand out in the crowd. Modifications range from aesthetic changes such as body kits to performance enhancers such as turbochargers. When handled by an expert, modifications can improve performance and increase your vehicle’s market value.

However, even when carried out by experts, performance modifications can void the warranty of your engine and get you in trouble with the law. Other modifications, such as nitrous injection kits, are illegal in Canada. In some provinces, officers can pull a modified vehicle off the road if they doubt its roadworthiness and safety. If this happens, you will be asked for a certificate of inspection, including the modifications.

Modified vehicles can also malfunction and damage parts, ruining the car or causing an accident. Sometimes, there is no vehicle insurance coverage available for certain modified vehicles, and if there is, insurance premiums will be very high. Additionally, adding modifications to your vehicle without telling your insurance company can be considered a violation of the policy conditions, causing any claims you make to be denied.

Before adding modifications to your vehicle, consider what you gain and what you will lose. Often, insurance for modified cars is fairly limited. Talk to your insurance broker before making a decision. If you don’t, you risk being unable to renew your car insurance policy.

The effects a modified vehicle has on car insurance

Modified car insurance is expensive and relatively limited. That’s why you should take the following into consideration before deciding to modify your car. The safety and performance of your car, in the event that you make significant modifications to your car, you may compromise that safety of your vehicle. The value of your vehicle, whether it appreciates or depreciates. Adding modifications may increase or decrease the value of your car, depending on what modifications you complete.

When you apply for modified car insurance, you have to provide details about your vehicle’s trim, make and model. This information will affect the price of your car insurance coverage. Adding modifications to your vehicle can also affect your insurance company’s appraisal of it. More expensive vehicles usually have higher insurance premiums.

Adding modifications to your vehicle usually increases your car insurance rates. However, modified car insurance is often limited and can sometimes lead to your policy being cancelled altogether. Having an expired car insurance renewal is the equivalent of driving without insurance. Below, we will discuss how modifications can impact your vehicle:

The impact of modifications on vehicle safety

Owning a vehicle with modifications will change its performance. That’s why you should ask your broker about insurance for modified cars before making any changes. Depending on what you do to it, your insurer might not be able to insure your modified vehicle. Changes that can impact performance and safety include:

• Engine modifications
• Vehicle suspension modifications
• Brake or braking system modifications
• Vehicle transmission modifications
• Increasing or decreasing tire size
• Tinting the windows

If you drive a modified car with a lowered suspension or alter the size or power of the engine, you put yourself at higher risk for accidents. Modified car insurance often requires a new policy with a willing insurance company. You will need to speak to your broker to find an insurer that provides coverage for modified cars.

The impact of modifications on vehicle value

Unless otherwise stated, most car insurance policies do not cover aftermarket parts—if they do, coverage for aftermarket modifications is often limited. If you add features such as an expensive aftermarket stereo, special exhaust system, custom paint job, or fancy rims, your insurance policy might not cover the damages. In other cases, if you don’t have modified car insurance, you might void your insurance policy.

If you are going to add aftermarket parts to your car, understand that you might require a new car insurance policy. Contact your insurance broker to get quotes from progressive insurance companies that provide coverage for modified cars.

Reach out to BrokerLink today!

Your car is your pride and joy — that’s amazing! However, you understand that you need modified car insurance to protect you in the event of an accident. Driving without insurance isn’t only illegal but also expensive because you won’t have any history to show when you apply for car insurance. There are many types of auto insurance coverage available. They apply to both regular and modified vehicles and include:

• Third-party liability coverage
• Accident benefits coverage
• Direct compensation - property damage coverage
• Uninsured automobile coverage
• Collision coverage
• Comprehensive coverage
• Accident forgiveness coverage

Are you looking for modified car insurance quotes? A BrokerLink broker can help. Before you modify your vehicle, give us a call, and we’ll help you find an insurance policy that suits your needs. What are you waiting for? Contact us to find a policy today.

Get an auto insurance quote 1-866-724-2372

Can modifying my car impact my insurance FAQs

Are modified cars more expensive to insure?

In most cases, yes, but it depends on the modifications and the insurance company. Many insurance companies will not cover any aftermarket parts but you may be able to find coverage through specialized insurance companies. Before making any aftermarket additions or changes to your vehicles, contact an insurance broker to learn more about getting a modified car insurance policy.

What types of modifications are likely to increase car insurance premiums?

There are many, for example, lowering the suspension or altering the size and power of the engine generally increase the risks of a car accident. So, these are types of modifications that are most likely to escalate your insurance premiums.

What happens if you get into an accident with a modified car?

If you are in a car accident and the insurance company finds out that you modified your vehicle without informing them after the fact, your claim could be denied and your insurance policy could be cancelled, leaving you liable for the damages and cost of the accident.

If you have any questions, contact one of our local branches.