The Impact of Car Modifications on Auto Insurance

Car enthusiasts often enjoy modifying their vehicles to enhance performance, aesthetics or both. While these modifications can make a car unique and exciting, they can also have implications for auto insurance. Understanding how modifications affect insurance coverage and premiums is crucial for any car owner considering changes to their vehicle.

Types of Modifications

Car modifications can range from minor cosmetic changes to major performance enhancements. Some common types of modifications include:

• Performance upgrades (e.g., turbochargers, superchargers and engine swaps)
• Aesthetic changes (e.g., custom paint jobs, body kits and aftermarket wheels)
• Interior modifications (e.g., sound systems, custom seats and advanced navigation systems)
• Safety improvements (e.g., roll cages, upgraded brakes and advanced lighting systems)

Impact on Insurance Premiums

Modifying a car can lead to higher insurance premiums for several reasons. Insurers may view modified vehicles as a higher risk due to increased performance capabilities or the higher cost of repairs and replacements. Here are some factors that can influence premiums:

• Increased risk—Performance modifications can lead to higher speeds and more aggressive driving, increasing the likelihood of accidents.
• Higher repair costs—Custom parts and modifications can be more expensive to repair or replace than standard parts.
• Theft attraction—Modified cars can be more attractive to thieves, leading to a higher risk of theft.

Coverage Considerations

When modifying a car, it’s essential to inform your insurance company about any changes. Failure to do so can result in denied claims or insufficient coverage. Your insurer may need to adjust your policy to reflect the increased value or risk associated with the modifications.

Some insurers offer specialized policies for modified cars that provide better coverage for custom parts and enhancements.

Contact Us

Contact Lefebvre Insurance Agency, Inc. in Providence, RI, for an auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.