Do self-vehicle modifications negatively affect your auto insurance?
If you fancy yourself a bit of a car enthusiast, you may have thought about making some modifications to your vehicle. And, while they can be a fun project to take on, and add some flavour to your ride, vehicle mods can have a negative impact on your auto insurance.
What is a car modification?
Before getting into how it affects insurance, let’s take a look at what actually consuetudes as a vehicle mod. Remember the MTV classic Pimp My Ride where they would take a car and trick it out with a new paint job, a bigger transmission, chrome rims, and lifted tires? While they were completely over the top, those are a great example of vehicle mods. A mod is anything that changes the originally factory standard of the vehicle and can include anything from a new stereo to a head turning paintjob.
Can you do the modification yourself?
Depending on your insurer, they may require that you have any modification be done through a legitimate shop. This helps to ensure the mod is completed in a safe and professional manner. Other insurers however will only ask what mods have been done when adjusting your policy. This leaves you free to take on a project and do the mod yourself, assuming you know what you are doing that is.
How do modifications affect your insurance?
More often than not, vehicle modifications will raise the cost of your auto insurance policy, and in some extreme cases they could void your insurance altogether. In the eyes of your insurer, many mods will raise the level of risk associated with your policy, be it from increased collision or theft rates. Fancy mods with chrome rims, loud paint jobs, and tricked out speakers are a red flag for thieves, increasing your chances of car theft and in turn could raise the cost of your premium. Other structural mods, like lifting and dropping the vehicle, or replacing the existing engine with a faster more powerful model, can put you at a high risk of collision. Not to mention, mods are often costly, and expensive to replace or fix, costing your insurance company more in the event that you put forth a claim. Because of the nature of the mods, some insurers may require additional premiums added to your existing policy to cover your vehicle mods.
To help ensure that your insurance remains valid, it is important to only opt for mods that street legal and will not pose a safety issue to you or others on the road.
The take away
The big takeaway here is to make sure that you speak with your broker before you made any vehicle mods and again after they are completed. By speaking to them before you will know exactly how the mods will affect your insurance rates and give you an idea as to whether or not they are worth pursuing. After any mods are completed, your insurer will need to know and adjust your policy accordingly. It is imperative that you are honest and upfront with your insurer, as neglecting to do so could lead to major negative repercussions. If you are in an accident and fail to inform your insurer that there were modifications were made to your car, your claim could be denied. In many cases you could also loss your coverage and find it difficult to obtain a new policy.
To find an insurer to best fit with your newly modified vehicle be sure to shop around online for the cheapest auto insurance price for the coverage you need.