Your modified car may look (and sound) cooler, but is it vulnerable without protection?
Have you ever been tempted to kit out your car with a new sound system? Thought about replacing the manufacturer’s wheels with new alloy tires? Or maybe you’ve considered tuning up the engine?
Modifying your car can be a great way to personalize your vehicle, and even improve its performance. The downside to this, however, is that it can quickly bump up the cost of your car insurance.
What is a car modification?
It is a change made to a vehicle so that it differs from the manufacturer’s original factory specification. The changes can be made to improve performance, aesthetics, or are simply functional.
The impact on auto insurance
Car insurance is based upon risk, and typically, modified cars are more likely to be sought after as they are one of a kind, updated, and improved. Car modifications can seriously affect how insurers assess your car insurance policy in two key areas:
The Risk of Accident – Modifications that alter the look or performance of your vehicle are often considered risky to auto insurers. From engine changes, sports seats, to spoilers, all of these can increase your insurance premium as you’ve potentially added more risk.
The Risk of Theft – Modifications such as phone kits, stereo systems, and performance updates also increase the chance that your car gets broken into or stolen.
If you neglect to tell your auto insurer that you have modified your car, your policy may not be valid for your vehicle, should you need to cash in on a claim!
If you have a modified vehicle or are thinking of adding a few cool updates to your car, call your insurer to discuss how your auto insurance will change! Telling your insurer before you make the change allows your car to fully covered, every step of the process.