The real cost of car modifications

Did you know that your comprehensive car insurance premium will partly depend on the modifications done to your car?

Some insurance companies set guidelines and rules on what modifications they feel are acceptable and what are not allowed by law, which can be costly when it comes to insuring your car. RateCity investigates how much these mods are really going to cost you.

Modifications can make or break the cost of your insurance

Any change to your vehicle that is away from the standard specifications for your particular car’s make and model will need to be disclosed to your insurer.

For example, some insurers regard alloy wheels as insignificant and may not affect your premium. Some may also regard modifications such as installation of car immobilizers and car alarms as increased security which can actually reduce your premiums. However, very few regard an upgraded engine, customised bodywork or lowered suspension in the same way.

What do insurers look for when you modify your car?

Research has shown that cars with higher powered engines are involved in more accidents than standard powered engines. Car insurance companies look at statistics and information regarding the probability of you being involved in a crash, as well as the likelihood of your car being stolen or vandalized.

They also look at the cost of car parts and repairs, so if your modifications cost you a lot to buy and install then you can be certain that your premiums will be affected too.

Imported cars can also be more costly to insure as their parts are generally much more expensive in the event of an accident or to replace. Local cars such as Holden, Toyota and Mitsubishi have parts that are much more readily available and therefore generally cheaper to repair so your premiums should be lower.

The cost of the car affects premiums as well, obviously a souped-up Ferrari would be more expensive to insure than a Suzuki Swift with mods.

No matter what type of car you have, check with your car insurance company before making modifications to see how it will affect your premium.

Tips on how to save on your car insurance

&#62 Compare quotes online at RateCity.com.au to find the best quote that suits you.
&#62 Be honest and disclose all mods to your insurer. In the event of a claim it will cost you more as you will not be covered if it isn’t on the list. The insurer also has the right to decline your claim if you are dishonest.
&#62 Install an alarm and/or an immobiliser as this may lower your premiums.
&#62 Keep your car garaged overnight or parked in a driveway if possible as this is considered lower risk than parking on the road.
&#62 If you want modifications make sure you get the job done professionally for a safer drive.

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