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It may be stating the obvious, but there are two reasons you modify a car: to make it look better or perform better. To insurers, this can sometimes mean there is a greater risk of your car being stolen (after all, it looks so good) or a greater risk of you having an accident. It also means repair or replacement costs could be higher. And with these higher risks, you could well end up paying higher premiums.
Whenever you make additions to improve your car’s performance or appearance, it’s usually classed as a modification. So that could include, but is not limited to, things like:
As modifications can impact an insurers decision to insure you, if you make any changes or modifications to your vehicle it’s important to notify your insurer to ensure your vehicle is covered.
Only you can put a value on car modifications; for some of us, our cars are our lives. Still, it’s a good idea to know how much your awesome additions will cost you in Car Insurance premiums. So before you make any changes, you should talk to your insurer about how any intended modifications could affect your policy or premiums.
First things first: always check with your insurer before you make a modification. In fact, most insurers make it mandatory for you to inform them of any changes you make. While larger additions are likely to change your premiums or impact an insurers decision to offer insurance, there are minor modifications that probably won’t.
It’s important to check the Product Disclosure Statement for details about your policy including inclusions and exclusions.
In a word, yes. But what is classed as illegal can change from state to state, so be sure to check with your relevant authority before you make any mods (we’ve included links at the end of this section).
Check with your local transport department regarding modification legalities:
Last updated: 08/09/2021