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How Modifications in Cars Can Affect Car Insurance?

Published On May 26, 2021

Although the modifications look spectacular, they may affect the car insurance premiums. This article will help you understand how different modifications can affect car insurance.

As a car owner, you might want to customize your car in your way. This could be done by adding a mat, installing robust tyres, putting up flashy lights, and so on. The modifications are performed by the owners to gear up the performance or appearance. But, such personalised alterations in your car can affect the premium amount of your car insurance, hence, you should make the changes with a complete understanding of the impacts of modifications. 

How Modifications in Cars Can Affect Car Insurance?

What Is Car Modification?

When it comes to modifications in cars, it means any change you made to your car in its original condition in which you purchased it. You can also understand it as any alteration you made to your car in order to make it look better or perform differently. Although the car modifications made by the manufacturers are market-approved as they are considered to be harmonious with the specifications of the car, a number of car modifications can affect the premium of car insurance. The insurers revise the prices as the modification changes the original safety features of the car which may jeopardize the safety of passengers and the public.

Modifications That Can Affect Your Car Insurance

Here are some types of modifications that can affect the car insurance premium:

Engine and Mechanics Modifications

These types of modifications are performed to enhance the performance of the engine of the car which ends up in the increase of acceleration speed. Such modifications are subject to increase the risk of an accident due to which insurance companies charge higher car insurance premiums for adding a supercharger, turbo, etc., to your car. 

Brakes and Suspension

As the control of the car lies in its brakes, hence, any alteration in such critical parts of the car requires assessment by insurers. The performance of the car will completely change on upgrading its brakes and suspension due to which car insurance premium may get affected. Therefore, you should inform your insurer about such modifications including the service provider details.

Wheel Modifications

Wheel modifications are made to enhance the look of the car which ultimately increases its value. As the value of the car also plays a role in the evaluation of car insurance, it is recommended to convey the change or alteration of the car wheels to your insurance company. 

Car Interior

If you are making any type of modifications to your car’s steering, pedals, sound system, seats, air conditioner, dashboard, and so on, you need to inform your car insurance company as these can be taken into consideration while computing the car insurance premium. 

Car Paintwork

Changing the paint of your car may look like one of the most harmless modifications that you can make, but it is a crucial modification for which you are advised to inform your insurance provider. The reason behind this is that if it is an extraordinary paint job such as racing car designs or any attractive design, which can change the appearance of your car remarkably, then such modifications may enhance the possibility of theft of your car due to which the premium of your car insurance increases.

Why Should You Declare Your Car Modifications?

You are advised to disclose all the car modifications that you make to your car. If you do not unveil the modifications, then your application for a car insurance claim may get rejected and even your policy coverage may become void. The insurer needs to be informed even if you have not made the alternations yourself. If you do not disclose your modification and your claim gets rejected, then you can also find it harder and costlier to get insurance for your car in the future.

Despite saving your claim from getting cancelled, it is essential to inform the insurance company about the alterations to help your insurer examine and modify the car insurance premium amount accordingly. It is also recommended not to hide or wait for a long time to inform your insurer about modifications as this can shield you from unnecessary hassle during the claim settlement period. 


Different types of modifications can be made to your car which can have effects on the car insurance premium differently. However, it is highly recommended to inform your insurance company about the modifications in advance to help them assess the impact of it on your car and compute the amount of premium accordingly.  Failing to inform your insurance company about the modifications can bring several problems for you at the time of the claim.

Also Read:

5 Most Important Sections In Car Insurance Policy Wordings

Top Factors That Determine The Premium of Your Car Insurance Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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