Modified cars are a great way to showcase personal style and performance upgrades, but they often come with higher insurance premiums. Whether you’ve added custom wheels, a new exhaust system, or a turbocharged engine, these modifications can change the way your car is valued by insurance companies. Luckily, there are several strategies to help reduce your modified car insurance costs while ensuring you’re fully covered.
In this guide, we’ll walk you through top tips for saving on modified car insurance in 2025, including what you need to know about insurance coverage, factors affecting premiums, and how to take advantage of discounts. Let’s dive in!
Shop Around and Compare Quotes
When it comes to modified car insurance, it’s essential to shop around. Not all insurance companies treat modifications the same way, and premiums can vary significantly depending on the provider.
- Use Comparison Websites: Websites like Compare.com, MoneySuperMarket, and The Zebra can help you quickly compare insurance quotes across different providers.
- Specialist Insurers: Look for insurers who specialize in modified car insurance. These providers are often more flexible when it comes to modifications and may offer better rates for custom vehicles.
Be Transparent About Modifications
Honesty is the best policy when it comes to modified car insurance. Always disclose any modifications to your insurer, even if they seem minor. Failing to do so can lead to denied claims or voided coverage if you’re in an accident.
Insurance companies assess modifications on several factors:
- Performance Modifications: Engine upgrades, turbocharging, and suspension enhancements can make your car more prone to accidents, increasing premiums.
- Appearance Modifications: Cosmetic changes like body kits, custom paint jobs, or rims may impact the car’s value and affect the cost of coverage.
- Security Enhancements: Modifications that improve your vehicle’s security, such as alarms, tracking devices, or upgraded locks, may lower your insurance premium.
Consider Agreed Value or Classic Car Insurance
For high-value modified cars, you may want to explore agreed value insurance or classic car insurance. These policies are designed for vehicles with unique or high-value modifications. Instead of the standard market value, the insurer agrees on a fixed value for your car, which can be beneficial if your modifications increase the car’s worth.
- Agreed Value: With this policy, the insurer and policyholder agree on a set amount of coverage that reflects the true value of the car, including modifications. In case of a total loss, you get the agreed amount without depreciation.
- Classic Car Insurance: If your modified car is vintage or a collector’s item, classic car insurance might be a better option. These policies usually provide coverage that accounts for modifications while offering lower premiums than standard auto insurance.
Choose the Right Type of Coverage
When insuring a modified car, it’s essential to choose the right type of coverage. Here are the main options to consider:
- Comprehensive Coverage: This offers the most extensive protection, covering both accidents and damage to your vehicle due to non-collision incidents, such as theft, fire, or vandalism. It’s often recommended for modified cars.
- Third-Party Insurance: If your car’s modifications don’t affect its safety or value too much, third-party coverage may be enough, and it’s typically cheaper than comprehensive.
- Custom Parts Coverage: Some insurers offer policies specifically tailored for custom parts and modifications. This ensures that any aftermarket components you’ve added are fully covered in case of damage or theft.
Increase Your Deductible
Increasing your deductible is one of the quickest ways to lower your premium. However, this means you’ll pay more out-of-pocket in the event of a claim. If you’re willing to take on more risk to save money upfront, consider raising your deductible.
Be sure to balance the increase in your deductible with the amount you can afford to pay out-of-pocket should something happen to your car.
Install Security Features
As mentioned earlier, modifications that enhance your car’s security can often lead to lower premiums. Numerous guarantees offer rebates for vehicles prepared with:
- Alarm systems
- GPS tracking devices
- Immobilizers or steering wheel locks
Security modifications help reduce the risk of theft, making your car less expensive to insure.
Bundle Your Insurance Policies
If you have multiple insurance policies (such as home, life, or motorcycle insurance), bundling them with the same insurer can often lead to significant savings on your modified car insurance. Many suppliers offer rebates for clients who buy numerous policies.
Check with your insurer to see if bundling can help you reduce your overall premium.
Consider a Low-Mileage Discount
Many insurers offer a discount for low-mileage drivers. If your modified car is a weekend driver or used only occasionally, you might qualify for a discount based on the number of miles you drive annually.
- Telematics Insurance: Some insurers use telematics (a device installed in your vehicle) to track your driving habits. If you’re a safe, low-mileage driver, you could save even more on your premiums.
Maintain a Clean Driving Record
A clean driving record is one of the finest ways to keep your protections premiums moo. Even with a modified car, insurers will offer better rates to drivers who have a history of safe driving.
- Avoid Accidents and Tickets: The fewer claims you file and the fewer traffic violations you have, the more likely you are to receive discounts from your insurer.
- Defensive Driving Courses: Taking a defensive driving course can sometimes lower your premiums, especially if you’re a young or new driver.
Review Your Policy Annually
Insurance rates can change from year to year, so it’s essential to review your modified car insurance policy annually to ensure you’re still getting the best deal. New discounts, updated modification policies, or changes in your driving habits might result in savings.
- Reassess Your Modifications: If you’ve removed or changed some of your modifications, inform your insurer. You might be able to adjust your coverage or lower your premium based on your vehicle’s current value and risk profile.
Conclusion:
Insuring a modified car can be expensive, but with the right strategies, you can significantly reduce your premiums while maintaining the coverage you need. Start by shopping around and being transparent about your modifications. Opt for agreed value insurance if your modifications have substantially increased your car’s value and take advantage of security features and policy bundling.
By following these top tips, you can save money on your modified car insurance while ensuring your custom ride is well protected. Always stay informed, compare quotes regularly, and choose a policy that suits both your budget and your car’s specific needs.
Stay safe on the road and enjoy your modified vehicle with confidence!
