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Insurance for modified cars is often overlooked or ignored by vehicle owners. Car mods have increased in popularity with the rise of popular films such as The Fast and Furious. It's popularized stunt driving and custom car culture. One thing you don’t see in these films is a discussion about insurance.
Are you thinking about modifying your car? Do you already have modifications? Car modifications can impact your car insurance. Many drivers of modified vehicles lack proper coverage. If you plan on spending money on vehicle mods, you want to make sure you know how it will affect your costs. Here is what you need to know when it comes to vehicle modifications.
Car modifications are making a change to how your vehicle looks or performs. Modifying a vehicle can be a cosmetic change for drivers to personalize their ride. Car mods can also include improving the functionality of the vehicle.
Many drivers want to optimize their vehicles for more than it was originally designed to do. These upgrades can improve engine performance, fuel economy, and dynamic handling characteristics. Car mods can include interior design, stereo systems, or external mods such as engine tuning, suspension, and tire mods.
There are countless ways you can modify a vehicle. Here are the most common mods. Some affect insurance, while others don’t :
Modifications for accessibility, appearance or safety purposes are usually covered by your insurance. Adding aftermarket safety features like dashcams, enhanced braking systems, and anti-theft devices also qualify. Sometimes, you may even qualify for an insurance discount. It is important to hold onto receipts and let your insurer know how much you paid for the mods in the event of a claim.
If cars are modified with performance enhancers (swapping out engines or exhaust system upgrades), you will have to speak with your insurer to see if your car can be insured.
Before you modify your vehicle, you need to check with your company to see if they insure vehicles with modifications. Performance-enhancing modifications, such as changing the engine or modifying the exhaust system, can increase your premium since the vehicle is not factory certified.
By adding new components to your vehicle, you can impact its overall value and the cost to repair it if damaged in an accident. Therefore, modifications can increase rates. Insurers will not cover illegal vehicle mods, even if the job is complete.
Legal car modifications can be added, but often at a cost. Before adding any mods to your vehicle, confirm they are legal in your area and how they will affect your car insurance quote.
Mainstream car mods, such as a bike rack, alloy wheels, stereo systems, and chrome exhaust systems are often covered by your insurer. Please speak with your insurer to verify what mods they cover. What is and is not covered can vary by provider.
If you make changes to your vehicle to make it more accessible for people with disabilities, it will not have a big impact. However, if the value of your vehicle is significantly increased (adding a wheelchair lift, hand controls, or custom seats), it can increase your cost.
A modified car can be insured in Canada. Owners should inform their insurer of the modifications before installation. This allows you to know if your modification is covered and how much it will impact your costs.
If you have modified without consulting your insurer, there is a possibility you have violated your insurance agreement. If you do not tell your insurer about any car mods or lie to your insurance company, you risk having your claim denied if there is an accident. Insurers can deny or cancel if a driver does not properly disclose modifications.
When you modify your vehicle, you also need to apply for a new vehicle permit. Changing your engine, fuel system, doors, axels, or vehicle body style will require a new permit.
The cost for insurance on a modified car can vary based on what modifications have been done. Your car mods may place you in a high-risk category. Reports show that car mods can increase costs by up to 36%. Some companies offer an agreed value policy – if your car is a total loss due to an occurrence or accident, you will be paid the agreed-upon amount.
Yes - if you do not declare car mods to your insurer, you risk having your claim denied or your insurance cancelled. There is also a risk that you will pay a high amount in expenses, especially third-party claims. As a policyholder, it is your responsibility to declare all modifications, performance enhancing or appearance, to your insurer. Failure to declare car mods also puts you at risk for insurance fraud.
Any modifications that result in breaking the law will void your insurance. Here are some car mods that can void it :
Unless you are selling your car in Ontario to someone who wants the modifications, you could be lowering the resale value of your vehicle. Cars are built to specific requirements for a reason – engines, brakes, frame, suspension, and tires are all chosen by a manufacturer for performance and safety. When those features are altered, they can cause issues when the car needs maintenance. Even though car value may go down, it doesn’t mean your insurance will go down.
If you have any modified parts inside or outside your vehicle, you need to contact your provider to make sure it's insured properly. Some mods will be easier to cover, while others may not be covered under your current insurance. There is high-risk auto insurance, but there are fewer options available.
Before you add any modification to your vehicle, do your research and check with your insurer. Have the mods installed or inspected by a qualified professional to ensure your car is safe. Once the job is done, notify your insurer so they can update your policy.
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| Categories | Auto |
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| Tags | Driving TipsAuto Coverage |
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