Is it true that my car insurance rates will increase if I modify my vehicle?

Jessie

Indianapolis, IN

Yes, a modified vehicle can affect your car insurance costs. However, how exactly it affects the cost will depend on the type of work done, the parts used, and if it has affected the market value of your vehicle. It’s possible for your rates to go higher if extensive (and expensive) modifications have been done. Here are six other things that can influence your car insurance costs:

1. Your Credit Score - Good credit means you’re a responsible person and tend to be a safer driver. The safer you are while on the road the less car insurance rates you’re charged.

2. Your Driving History – This is probably the biggest factor that can affect your car insurance costs. Car accidents and even minor, repeated, traffic violations can have a big impact on your rates.

3. Number of Claims You File – If you file claims too much, your insurer may think that you’re a riskier driver. The more risk you represent the bigger premiums you’ll pay.

4. Discounts You’re Eligible for – Knowing about discounts you’re eligible for is a great way to reduce your insurance costs. Be proactive; always ask your insurer about discount options

5. The Amount of Your Deductible – A higher deductible would lead to lower premiums. Those who choose to minimize their deductible price could actually spend more money in the long run.

6. If You Shop Around for Rates – There are many websites today (like this one) where you can get an instant car insurance quote and be able to compare the best deals coming from many insurers. This is an excellent way to spot a great deal.

What vehicle insurance coverage would be my first priority if I were to modify my car? Should there be any concerns to my current premiums when altering a car?

Brian

Orlando, FL

Before you do any modifications, it is wise to ask your agent first and notify your carrier about your plans for the changes. When modifying your car, you could expect a definite change in premiums because you are changing your policy, as well. A modified car is considered an investment, and for this reason, many individuals opt to change their policy in order to protect their investment. These individuals are willing to pay an extra cost to insure their car and its content, which include substantial customization. You can do this by making an endorsement to your vehicle insurance policy.

Collision and Comprehensive are vehicle insurance coverage that you should not overlook; these two would protect your liabilities and investment in case your car gets totaled. You can adjust minor modifications to your policy according to your specifications that would match your customization. You can put emphasis on insuring the contents and accessories of your car at a low cost. You can also extend the type of coverage concerning your interest. After you have made minor alterations to your policy, your next step is to compare rates from multiple insurance companies. Vehicle insurance companies mostly vary in their rates and their level of coverage. Now, you have to weigh them according to their benefits.

Meanwhile, the following extra tips could prove helpful when modifying your car:

1. When making alterations to your car, see to it that you allocate extra money for installation of safety features such as airbags, automated seatbelts, antitheft system, etc. as this could lower your premiums and lower the cost of insurance.
2. Make sure that all installations and modifications are done by professionals. Sloppy installations and maintenance, defective parts, and malfunctions could hurt your vehicle insurance premiums. This would mean a rise in your insurance premiums if your car was unable to pass safety checks.
3. Keep your car protected in a garage. Keeping your car in a closed garage could earn you discounts from your insurance company.
4. Know where to park. If possible, park indoors to avoid the possibility of risks involving theft, vandalism, or perils. The location where you park your car will have a direct impact on your premiums.

I hope you find my suggestions helpful. Have a nice day!

I have been working on some minor modifications on my car. Is it really necessary to have it insured under car insurance for modified cars?

Vince

Detroit, MI

As you may already know, reasonably priced car insurance for modified cars is quite hard to find. Worse, if you are a young driver below the age of 25, then car insurers will be charging you with much more. And add to these considerations the fact that Detroit is the most expensive city when it comes to having a car insured, then you might just face some real headache for those minor modifications you have fitted on your car. But if you were caught driving a modified car without the proper insurance and documentation, then you may just have to give it up to the state impound.

Changing the factory specification of a car by putting on upgraded systems of exhaust, darkened windows, front or rear bumper modifications will require you to report the matter to your car insurer as your regular policy will definitely be insufficient to cover your car. This is because the regular car insurance policy that you bought will not take into consideration the money you have invested on your newly modified car. So, do not delay speaking with your agent to ask for guaranteed ways to get competitive car insurance rates. If the car is parked in a garage, then emphasize this to your agent to qualify for lower discounts. You should also devote some time shopping around, so that you widen your options.

How much will my car insurance premiums increase once my vehicle here in Alabama finishes undergoing modification?

Helmut

Huntsville, AL

Good question. The amount of increase you can expect to see once your vehicle there in Alabama is completely modified depends on how extensive (and expensive) the modification is. It would be hard to tell how much specifically since that would be the job of a car insurance assessor working for your insurance provider. More often than not though, modified car insurance coverage tends to become more expensive. Here’s additional information that can guide you in determining why insurance costs increase after customizing or modifying a vehicle:

1.Some modifications, such as cosmetic exterior improvements, additional accessories or changing the in-car entertainment system would not warrant much increase at all, if any. Some modification such installing a high-powered, high-performance engine however, would definitely cause your rates to soar.

2.Some companies may refuse to provide, or continue providing coverage, on a modified, high-powered vehicle if they see too much risk in doing so, like letting a teenager drive such a vehicle, its a guaranteed car accident and insurance nightmare waiting to happen.

3.Never lie about the changes or upgrades you made on the specs of a modified vehicle. Doing so may cause your insurance policy to be voided in the future.

4.There are many companies out there that specializes on modified auto insurance. You’ll have a bigger chance of getting a relatively cheap modified car insurance with them than you would with a general-purpose insurance carrier. We recommend you get free insurance quotes for your vehicle, as well as find a suitable insurance provider, by using the insurance quote search tool found on this website.

My car here in South Dakota will be part of a TV program and would be modified extensively, will that keep me from getting cheap car insurance?

Dexter

Sioux Falls, SD

Extensive modifications on your vehicle may not only prevent you from getting cheap car insurance, it can also be a reason for your auto insurance premiums to actually increase. Of course, the actual amount of increase would still depend on the kind or level of modification to be done on your vehicle, it’s hard to imagine car insurance expenses skyrocketing just because you got a new paint job on your car. If the said modification, however, increases the value of your vehicle, or makes it more prone to car theft and vandalism, then you may need to purchase higher comprehensive and collision coverage in order to maintain adequate insurance coverage for the modified vehicle that you got there in South Dakota.

One of the best ways to control insurance costs for a modified car is to always park it safe in a garage (and tell your carrier that, as well as any other precautions and steps you are taking to keep your modified car safe). Consider throwing in some safety modifications while your at it, it may make you eligible for much needed discounts on a modified car insurance policy.

You should also run free insurance quote checks on this website to find and compare for cheap modified car insurance. There are many companies out there that specializes in auto insurance for modified vehicles and searching online is one of the easiest and quickest ways to find them.

I want to modify my car, so that I could maximize its potential. I also want it to look good. But since I am just a beginner hobbyist, I still have no idea how car insurance for modified cars work. Can anyone enlighten me?

John

Brooklyn, NY

Recently, television shows like “Pimp My Ride” and movies such as the “Fast and the Furious” series have shown us how far a vehicle could go as far as aesthetics and efficiency are concerned. And we also have to admit that a good-looking car is almost like a status symbol. This is why a lot of car owners are opting to modify their cars.

But sadly, a lot of these people make the very grave mistake of modifying their cars without having to stop and reflect on how car insurance for modified cars works. Most of the time, they go on customizing their cars and find out in the end that their expensive modifications are not even going to be covered in the event of an accident or when they get damaged. So, as a tip to you, always be highly informed before starting any modification on your car.

By now, it should be established that car insurance for modified cars is not as simple as that of the standard cars. Normally, when you purchase a car insurance policy, you shall be asked if you have important vehicular modifications that you would want to be insured. You would even see in the form a check box that asks you for this information. Additional coverage for car modifications is obviously for a price. Now, the case is different if you already have an existing car insurance policy. Adding your car’s modifications to be covered means having to go through a change of policy. And this comes with a price, as well. I suggest that you shop around to know if it is better to stick with your current company or to transfer to a new one because prices vary greatly with each company.

I hope I was able to enlighten you regarding this subject of car insurance for modified cars. And good luck with your newfound hobby.

Do I need to obtain modified car insurance if my car’s suspension has been lowered?

Molly

Tulsa, OK

Car insurance companies require their clients to report if their cars have been modified. This is because there are a large number of modified car owners who file claims against their insurer. This could be due to the accidents attributed to the different handling of modified cars because of lowered suspension or adding of wider wheels. Additionally, modified cars will need special parts, thus will cost the insurer lots of money if repairs or replacements need to be done.

It is for these reasons that you will need to be forthcoming with your car insurance agent about the modifications made to your car. Since the car’s suspension has been lowered, the handling of the car may be greatly affected. This could mean that you may get into more accidents than car owners who have the regular manufacturer’s design. And as such, you will get to pay higher premiums. To get lower modified car insurance, try engaging the services of a seasoned car insurance broker. This way, his expertise on specialty car insurance will be very helpful when negotiating for the terms of modified car insurance coverage for your vehicle. Another way is to ask your friends with modified cars for advice on which car insurance carriers to go with.