What insurance issues are involved with modifying?

Insurance and modifications to cars - what to remember

We all know how finicky insurance companies can be regarding modified cars and claims surrounding them, so here are a few tips that should make life with your insurer more bearable.

Rule Number 1!!!!

If you have any doubts, declare anything and everything modified to the car. Remember that insurance companies are legally allowed to dispute any claim if it is found that a car insured was non-standard in any way.

Some mod's might affect your premiums more than others and no two insurance companies will handle modifications the same way. Your circumstances will play a major role in your premiums too.

Some other modification rules to remember:

1. Body
   Even the smallest rear spoilers can be considered part of a "bodykit", in effect anything that alters the exterior appearance needs to be declared. Depending on the degree of the modifications, the increase in your premium should be relatively small, if anything at all.
   
2. Brakes
   If you decide to upgrade the brakes of your ride, say fitting grooved and drilled discs, will not actually affect insurance premiums. But when you start playing with items like bigger discs and calipers, then you might find your insurers being a bit difficult.
   
3. Engine
   Small modifications like induction kits and exhaust systems shouldn't affect your premiums at all. But the mention of a unichip or standalone-management system, and they will load your premium, or even refuse to insure the car. Not to mention swapping engines, which will require a full engineer's report on what was done to the new engine before they'll cover it.
   
4. Interior
   Same as exterior body modifications, depending on the degree of modification, shouldn't make any difference to your premium, but just make sure with them.
   
5. Lights
   Since lights are considered safety-related items, you might be asked a lot of questions, so keep it sensible and as legal as possible, and you'll be fine.
   
6. Security
   Where possible, mention everything regarding your security items - alarms, immobilisers, any mechanical devices and wheel lock nuts. Don't lie on these items and where its parked at night, cause if they find out anything different... you can kiss your cover goodbye!
   
7. Suspension
   A drop in ride height, like 30-40mm is fine, but lower and you may see your premium rise.
   
8. Wheels
   Depending on where you insure, this may or may not affect your premiums.