Why Do Modified Cars Need Specialist Insurance?

Vehicle and automotive modification is a diverse pastime, and one that can have multiple goals for car-owners. While some modifications are designed to improve the speed or performance of a vehicle, for example, others have the primary goal of enhancing its visible appearance. There are also some modifications that are aimed improving the accessibility of a car, such as those aimed at altering a vehicle for a disabled driver or passengers.

Why do Cars of this type require specialist Insurance?

Regardless of the reasons for modifying your car, however, it is important to note that these changes will impact on your insurance and may affect your extended warranty. They may also enhance or diminish the resale value of the vehicle over time, but in the short-term that will translate directly into an adapted insurance premium. Depending on the extent of the changes that you make that are outside of the manufacturer’s original warranty or factory specification, you may need to invest in the type of specialist insurance plans available in the current market.

The primary reason for this is that the majority of modifications will impact on the performance or usability of a particular vehicle, whether this translates into an increase in speed or the way in which the car is operated. Such change would drive greater performance and in turn increase the risk of the vehicle being involved in an accident, which is the first consideration made by insurers when creating policies for drivers. In instances where the chances of an accident increase, insurers will raise the premiums accordingly.

The Last Word

Similarly, modifications may also increase the value of a vehicle, making it a more viable target for thieves and opportunities. If the modifications made also include the installation of expensive sound systems and similar accessories, insurers will also factor in the cost of these individual items into the overall value of the vehicle. They would then in Turn increase premiums and the monthly cost charged to owners.

As a result of these factors, proactive insurers such as A-Plan have worked hard to develop comprehensive coverage that has been specifically designed to suit modified vehicle. Policies of this type automatically factor in the cost of modifications and the impact that they have on each individual vehicle, while they also make account for the increased risk of accident and industry. The resulting coverage is subsequently cheaper, and investing in such a policy is far preferable to continuing with a standard service provider that will apply a heavy premium to modified cars.