Guide to modified car insurance

If you're a modified car owner like me, then one of your biggest headaches is probably the cost and complexity of your car insurance. However, with a little knowledge and forward planning you too can become one of the many modified car owners able to secure comprehensive cover at a reasonable price. Read on for a complete guide to modified car insurance, including my tips and tricks to help you in your quest for a cracking deal.

What difference will modifications make to the cost of my car insurance premium?

Unsurprisingly, it all lies with the type of modification and the extent of your vehicle’s modifications in general. Some modifications will have little impact on premiums, others will send them rocketing; and sometimes, a very minor and seemingly innocent modification can be the straw that breaks the camel's back, tipping the balance and raising a red flag with insurance companies.

If you shop around, drive safely and stay on the right side of our motoring laws you’ll probably find that most standard cars are relatively cheap to insure. Add a few modifications however, particularly those that are power-based or performance-enhancing, and you may find your insurer to be a little less friendly. By spending a few hundred pounds on the car, you’ve immediately increased your risk and, crucially, sent the message that you’re likely to be driving the car a whole lot faster than you did before – the end result is a hike in your car insurance premiums…and a big hole in your pocket!

Conversely, there is an argument that heavily modified cars are cheaper to insure than those with minor enhancements. Admittedly it sounds unlikely, but the rationale behind it is sound. Those who have ploughed a substantial amount of time and money into their cars tend to take much better care of them, not only in terms of where they keep them but also how they drive them. To this type of owner, their car is a prized possession and they are likely to treat it more responsibly as a result. If this is you, then you'll be pleased to hear that some insurance companies will reward you by lowering your level of risk, and in turn this will lower your premiums.

So what constitutes a heavily modified car? Typically, cars that have undergone extensive work usually fall into this category. Extreme modifications to body work, interior trim or ICE (in-car entertainment) contribute to raising a car to this status. Be careful though, increasing engine power and substantially enhancing performance can force premiums up. Take advice before pushing ahead with this work.

So what do I need to declare?

Stick to the golden rule of “ADE” – Always Declare Everything! No matter how trivial or harmless the modification seems, declare it. If you don’t, your insurance could be rendered null and void – leaving you in a very sticky situation should you need to claim. How insurers treat modifications varies from company to company – so before undertaking any work check how much it will add to your premium both now and on renewal.

And don't forget, by law you need to keep the DVLA informed of any alterations you make to your vehicle.

Lowering your risk and your premiums  

Do:  

 ·          Limit your mileage. The less time you spend on the road, the less likely you are to be involved in an accident. If you only use your car at weekends, tell your insurer.  

·          Cut out commuting. Using your car at peak travel times means you are more likely to have a scrape.  

·          Garage it. Unfortunately, modified cars tend to attract undesirable attention. Keeping it securely under lock and key reduces the chance of it being stolen, stripped of parts or broken into.

·          Restrict it. Keep your modified car for track or off-road use only.

·          Fit a tracker or advanced alarm system. A tracker may set you back £600-700 but you’ll soon recoup that with lower car insurance premiums.  

Don't:  

·         Make extreme modifications. You’ll probably find that the nitrous oxide kit you fitted just rendered your insurance void. If in doubt, check!

My other top tips for getting a better deal

For starters, join an owners group or car club. Not only will you get to mix with like minded people, but there will be others in the same boat as you. Sharing experiences is a good way to suss out which insurers will be more sympathetic towards you and as an added bonus, some clubs are offered discounts by some specialist insurers on the basis that they'll attract bulk business.

You can also consider increasing your voluntary excess. Remember, you only pay the excess in the event of a claim, so by raising it you are able to lower your annual premium. However, a word of caution  - if you are worried you can't afford to cover the excess in the event of making a claim, then my advice is don't do it. With this option, there is always an element of risk.

Use comparison sites to compare a wide range of quotes. You've probably been bombarded with TV adverts for the majority of these, but in my opinion the best one for modified car owners is Gocompare.com. Unlike some of the others, you can obtain accurate quotes that take into account the full extent of the modifications you've made, including mods to wheels and tyres, spoilers and body kits, paintwork and stickers, suspension and steering, brakes, engine and accessories. It's definitely worth using this site to shop around for car insurance, even if you end up buying with a specialist insurer that's not on their panel.

Which brings me neatly to specialist insurers, such as Adrian Flux or Performance Direct. They are comfortable with insuring modified cars and experienced at dealing with modified car owners like you and me. Give them a bell or try their online quote process.