Modified Car Insurance

Posted by on January 25th, 2017

Finding an insurance broker willing to cover your modified car can be difficult and finding a policy you’re happy with can be even tougher.

That’s because all your tinkering and modifications change the value of your car. And if your mods have improved performance, it can push you into a high risk profile.

What modified car owners then find is that insurers will only cover the market value of your car, rather than the value of your car including all your mods.

All in all it can lead to some very frustrated modified car drivers.

Fortunately not all insurers are like that and lots of them are on the broker panel.

That means when you compare quotes online and over the phone, you can get insurance quotes for your modified car.

Modified car insurance policies

One of the biggest sticking points for modified car insurance is the value of your motor.

You may think your modifications have increased the value of your modded car, but your insurer might not necessarily agree.

The simplest way to make sure you get the money you think your car is worth in the event of a claim is to go for an Agreed-value policy.

An Agreed-value policy is often used for classic cars and as the name suggests, both you and your insurer agree on exactly how much your car is worth.

Unfortunately not many brokers offer Agreed-value policies so you will have to check the wording of your policy to make sure this is an option on your potential policy.

When you find a broker that does offer Agreed-value policies be prepared, they will be more expensive than market value policies.

Why do modifications increase the cost of car insurance?

Modifications increase the cost of car insurance because drivers with high performance cars are statistically more likely to be involved in accidents, which leads to claims.

Modifications also make cars more desirable to thieves and the more likely your car is to be stolen, the more your insurance will cost.

What if my modifications don’t improve the performance of my car?

Whether or not your modifications improve the performance of your car, they’ will generally still increase the cost of your insurance premium.

Something as basic as adding new alloy wheels to your car, because it changes your vehicle from the manufacturer’s specification, could increase the cost of your car insurance.

The reason? As the manufacturer does not generally carry out modifications themselves, they can’t be guaranteed, so your insurance goes up.

Should I modify my car?

If you want the cheapest car insurance you can possibly get your hands on, modifications are not a sensible option.

They will almost certainly increase your car insurance premium but if your heart is set on tuning your motor, there are a few ways you can keep your modified car insurance premium down.

Ways to reduce my modified car insurance premium

1. Keep your car in a locked garage overnight

For obvious reasons, keeping your car in a secure garage overnight will reduce the chance of theft and should lower your premium.

2. Raise the excess

Increasing the excess on your modified car insurance policy can dramatically reduce your premium.

You need to be able to pay both your compulsory excess and voluntary excess in a lump sum in the event of a claim however, so make sure you can afford it.

3. Pay upfront

Monthly payments can add as much as 20 per cent to the cost of an annual policy. If you can afford it, pay for your policy upfront.

4. Limit your driving

The more miles you drive, the more chance you have of being involved in an incident on the road and making a claim.

Keeping your mileage down can reduce the cost of your modified car insurance policy but if it’s your everyday run-around, that can be impossible.

Don’t underestimate your mileage either, if you get it wrong you can be forced to pay a mileage fee.

5. Further training

Certain insurance brokers offer discounts for drivers who have taken and passed an approved driver training course.

Each insurer has its own list of approved courses so check which one your broker offers discounts for before taking the plunge.

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