Stock cars are boring, which is why so many people choose to customize them. From tinted windows and shiny rims to performance-enhancing modifications, customizing cars has become increasingly popular. And these modifications can have at least a moderate impact on your insurance premiums. If you`re considering modifications for your car, it`s important to understand how they`ll affect your insurance premiums. This guide will cover everything you need to know.
How do modifications affect insurance premiums?
Car modifications can both positively and negatively affect your insurance premiums. They can increase or decrease the cost of your policy, depending on what you`ve changed.
As a general rule, if a modification increases the value of your car, it will also increase the cost of your insurance policy. This is because modifications that add value to a car can make it more attractive to thieves or make it more expensive to repair.
But it`s important not to prioritize modifications over insurance if you can`t afford greater premiums, as you want to cover yourself for any possibility on the road.
On the other hand, modifications that improve safety will typically lower your insurance premiums. This means adding safety features such as airbags, anti-lock brakes, and stability control systems can help you get a better rate on your insurance policy.
Let’s take a look at both types of modifications in more detail.
Modifications that increase insurance premiums
Body modifications
Bodywork modifications include things like installing a spoiler, tinted windows, or changing the paint color.
These modifications can increase your premium because they can make the car more prone to accidents. At other times, they are made of low-quality materials that can get easily damaged during accidents. For example, body kits made of plastic and fiberglass are more likely to crack or break in an accident, increasing repair costs.
Many drivers are surprised when they learn that something as innocent as a paint job or tinted windows can increase their insurance premiums. Importantly, these exterior modifications don’t always increase your premiums — it really depends on the insurer and the kind of claims they’ve processed in the past.
Short gear shift kits
You might install a short gear shift kit if you’re looking for better (and sportier) performance from your car. While this type of modification may be appealing, it can also increase the cost of your insurance policy. That`s because it’s usually associated with racing, which is considered a higher risk and can lead to more accidents.
Alloy wheels
Alloy wheels are a popular choice for car owners looking to customize their vehicle. While they can make your car look great, they can also increase your insurance premium. This is because they are much more expensive than regular steel wheels, which means they’re also more prone to theft.
Engine modifications
Engine modifications are designed to improve the performance of your car. But they can also increase the risk of accidents and theft, and lead to more costly repairs, which is why most insurers will charge you a higher premium for them. Examples of engine modifications include turbochargers, superchargers, and nitrous oxide systems.
Modifications that increase insurance premiums
Fortunately, there are also car modifications that can help you save money on your insurance policy. These are usually modifications that improve the safety of your car and reduce the risk of accidents or theft.
Safety features
Adding the latest safety features to your car is one of the best ways to lower your insurance premiums. This includes things like airbags, anti-lock brakes, and stability control systems. These modifications reduce the risk of injury in an accident, which is why many insurers will offer you a discount for them.
One example of a stability control system is a sway bar. Normally, cars have a tendency to sway during cornering, which can make them difficult to handle. Adding a sway bar helps keep the car more stable on turns, making it safer and less likely to be involved in an accident.
Engine Downsizing
While this is something of an extreme example, engine downsizing can actually help you save money on your insurance policy. This is because it reduces the power of your car and, as a result, reduces the risk of accidents.
What other factors affect your insurance premium?
In addition to modifications, there are a number of other factors that can affect your insurance premium. These include where you live, the type of car you drive, and your driving record.
For example, if you live in an area with a higher crime rate, your insurance premium will be higher because there is a greater risk of theft or vandalism. Similarly, if you have a poor driving record, your rates may be higher because of the increased risk of accidents.
Interestingly, your age and gender can also affect your insurance premium. Teenage drivers and elderly drivers usually pay higher rates because they are considered riskier drivers. Similarly, young male drivers usually pay higher rates than young female drivers.
So before you head out to shop for car insurance, it`s important to understand all of these factors, as they can have a big impact on the cost of your policy.
Final words
Ultimately, the cost of car insurance depends on a number of factors, including the type and amount of modifications you make to your vehicle.
Certain modifications, such as adding safety features or engine downsizing, can actually help you save money on your insurance policy. However, other modifications, like short gear shift kits or alloy wheels, can increase your policy’s cost. It`s important to weigh the pros and cons of any modifications you make before making a decision.
