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An in-depth look at modified car insurance As modified cars are usually hit with increased car insurance premiums is it possible to upgrade your car without paying over the odds? How much does it cost to insure a modified car? Car insurance premiums are determined by a number of factors including your driving history, your address, your personal circumstances, your annual mileage and the vehicle itself. As a general rule, modified cars receive higher car insurance premiums because modified parts may be more difficult to repair/replace and can also add to a vehicle’s value meaning an insurer may face a larger payout in the event of a total loss. To illustrate the point, we compared quotes for a 30-year-old male driver from South Wales with a 2002 Alfa Romeo 156 GTA – he has five years’ no-claims and agreed to a £250 excess. Without modifications, his cheapest quote was £395.99 a year for comprehensive car insurance. If the same driver then added non-standard alloy wheels to his vehicle, his cheapest quote would increase to £463.91 a year – an increase of more than £60. Indeed there were more significant increases depending on the modification – for example, by adding upgraded brakes to his vehicle his cheapest quote would increase to £516.23 – an increase of more than £120. However, by turbo charging the engine, the cheapest quote available was for £583.98 – an increase of nearly £190 compared to the original quote.* What’s also important to note is that following this modification there were only five providers willing to offer a quote – with the cheapest coming from a specialist car insurance company. Are specialist car insurance companies the best option? Specialist car insurance companies claim to offer more appropriate deals for modified car drivers because they acknowledge that many modified car owners take a great deal of care with their vehicles. As such they may offer a number of cover options that you might not find with a conventional insurer, including: - Agreed valuations: If your vehicle were written-off or stolen it would normally be subject to a market valuation – and as the values of modified cars can be difficult to determine there is a risk that your vehicle may be undervalued in these circumstances. However, several specialist insurance companies offer guaranteed agreed valuations so you know from the outset that you will receive a fixed payout in the event of a total loss. - Limited mileage discounts: If you use your modified car as a secondary vehicle, or just don’t cover a lot of miles, then consider agreeing to a mileage cap which will reward you for spending less time on the road with a reduced premium. - Owners’/manufacturers’ club discounts: Many modified car drivers are members of owners’ clubs or online forums. Depending on the insurer, joining one of these clubs could earn you a discount as some specialists acknowledge the fact that club members are often more knowledgeable about their car. - Track/race day cover: If you’re planning to take your modified car on to a race track or to compete in a rally, hill climb or other special event, ensure it is covered under the terms of your policy. These incentives could be worth paying an additional premium for however, you should still shop around using a comparison website that can compare specialist deals alongside those from conventional insurers. By doing this, you can determine how much you want to pay for a policy and the cover options available to ensure you’re receiving value for money. Other ways to save on modified car insurance Just because you’re driving a modified car, it doesn’t mean that you should give up on finding cheap car insurance – in fact there are several ways to bring premiums down: - Add security: Many insurance companies offer discounts if you fit approved devices such as alarms, immobilisers and trackers. - Increase your excess: An excess – which is your contribution towards a claim – is usually divided into a compulsory excess established by the insurer and a voluntary excess, which is an additional amount you agree to pay towards a claim when taking the policy out. The more you’re willing to pay towards a claim, the lower your premiums will usually be – however, keep the excess at a level you can comfortably afford. - No-claims discounts: Most insurance companies offer no-claims bonuses as a reward for staying claims free – potentially a no-claims discount could reduce premiums by as much as 60 per cent after four years. - Park safely: You can reduce the risk of vandalism or vehicle theft and save on your premiums by parking your vehicle in a locked garage overnight. - Pay annually: You may be able to avoid monthly interest charges by paying premiums upfront. *All quotes correct as of January 29, 2010 |
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An in-depth look at modified car insurance as modified cars are usually hit with increased car insurance premiums is it possible to
upgrade your car without paying over the odds?
Looking for
cheap insurance?
