How modifications affect car insurance premiums
18/09/2009 19:16:14

Modify your vehicle and you might get admiring glances from other motorists, but chances are your car insurance provider will not approve.

Generally speaking, insurers frown on modifications as it is believed that they increase the likelihood of an accident occurring or may make the vehicle a more obvious target for thieves. The increased risk of an insurer having to make a payout means that premiums rise too.

The theory behind premium increases

It’s clear that a car with a more powerful engine has the potential to be driven at a faster speed. At the same time, a car that looks more attractive is more desirable to thieves just as it is to reputable motorists.

There are also statistical reasons for insurers’ increased quotations. Modifications are particularly popular among young drivers and statistically this group is the most prone to making car insurance claims. According to the Daily Mail, one in three young male drivers writes off a car within their first year of driving; one quarter of drivers under 21 have an accident after losing control of their car; and one quarter of the convictions for causing death by dangerous driving are for drivers under 20.

This reputation as ‘boy racers’ has a negative impact on all drivers who modify their vehicles. As a consequence most insurers advise drivers to wait until they are at least 25 before modifying their vehicle.

The affect of individual modifications

Even if you wait until you are over 25, modifications can still increase your premiums. Here we look at a 27-year-old married male driver who works in medical research and drives a 2005 Ford Fiesta ST 1999c three-door petrol car and has five years no-claims and a £250 excess. We used a comparison website to look at the quotes this driver would receive first without modifying his vehicle, and then with various modifications. Here are the results*:

• Cheapest quote for vehicle with no modifications: £451.50 Privilege car insurance.

• Cheapest quote for vehicle with alloy wheels: £653.06 ibuyeco.

• Cheapest quote for vehicle with rear spoiler/aerofoil: £653.06 ibuyeco.

• Cheapest quote for vehicle with new air filter: £690.49 Marks & Spencer.

• Cheapest quote for vehicle with complete body kit: £709.36 1st Central.

• Cheapest quote for vehicle with uprated brakes: £709.36 1st Central.

• Cheapest quote for vehicle with turbocharging: £709.36 1st Central.

• Cheapest quote for vehicle with sports steering wheel, tinted windows, uprated brakes, turbocharging, non-standard respray, complete bodykit and alloy wheels: £709.36 1st Central.

The results show that even a relatively simple modification such as adding alloy wheels or a rear spoiler could increase car insurance premiums by more than £200. Though the more significant modifications don’t appear to have such a substantial affect, what’s noticeable is that fewer and fewer insurance companies are willing to offer quotes at all. In fact, for the final quotation only two insurers offered quotes.

How to reduce premiums for a modified car

If your car is modified it’s vital to shop around for car insurance before you buy. Use a comparison website to compare the quotes available from conventional insurers and you may also wish to contact specialist insurers to compare their rates – some of the leading specialists in the UK market do quote on comparision websites including the likes of Flux Direct and Performance Direct.

You may be able to reduce your premiums further if you: are willing to agree to a mileage limit; take an advanced drivers’ course such as the Pass Plus; agree to a higher voluntary excess; are a member of a car/owners’ club; park in a garage overnight; and pay your premiums annually instead of monthly.

*All statistics correct as of September 17, 2009

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