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The Benefits of Declaring Car Modifications

Car modifications, or mods, are becoming more popular as technological capacity expands that market and makes it easier to create more and more products. However, many mod enthusiasts may not have considered the way that modifying a car can affect their car insurance rates, nor do they understand what their obligations are to report mods to car insurance companies. This guide will help you get a better understanding of the relationship between mods and insurance so that they can make the best financial decisions possible.
The Benefits of Declaring Car Modifications

Mods Affect Rates

Modifications affect insurance rates. This makes sense when you consider what kind of modifications are usually added to cars, and the way that insurance costs are calculated. The insurance rate that a company gives is based on an assumed value of the vehicle. Car mods raise the value of the vehicle, exposing the company to more risk because of the higher payout.

Additionally, many mods enhance the performance of a car’s steering, engine, or transmission. The result is that it performs at higher levels. Higher performance autos are statistically more likely to be in an expensive accident, so these sorts of modifications will also raise the price of insurance cover for that auto.

There are some mods that will lower insurance rates. One example is a security system or immobilizer. These systems help prevent the car from being stolen, reducing the risk that the insurance company faces. As a result, security devices and systems can help reduce the cost of insuring a vehicle. Moreover, modifications that make a car safer, such as an enhanced anti-roll bar or better restraining devices can reduce the risk of injury, and thus also reduce the risk the insurance company faces. Many companies are willing to lower the rate they charge for cars that have these types of modifications.

Not every type of modification affects insurance rates. For example, a new paint job may enhance the value of your car, but not to such an extent that it needs to be reported. This is because the paint job is not an enhancement, but a restoration. It brings the car closer to factory condition, which is what an insurance company considers when they are setting prices. Other changes that don’t affect rates might include new windshields or windows, new speakers or other entertainment options. It is important to keep in mind that every insurance company has different policies, so if you aren’t sure if a company needs to know about your modification and if it will affect your rates, then you should be sure to call and ask before you spend the money on your car.

The Benefits of Declaring Modifications

With so much discussion on the way that mods can increase the cost of your car insurance, some drivers may be wondering why they would tell the insurance company about them. There are some very good reasons why it’s a good idea to accept higher rates on insurance by reporting mods.

The first reason has to do with your insurance cover itself. When you buy insurance you give a description of the car, including any mods, to the insurance company. If you mod your car and don’t tell them, and then are in an accident, the car that you file a claim for no longer matches the car that you described to the insurance company. This can lead to an invalidated claim, leaving the motorist hanging for the bill and potentially facing legal consequences as well. The price for repairs to property will likely far outweigh the few quid that your insurance will go up by as a result of the mod.

Another reason why it’s a good idea to report mods to your car insurance UK company is that those mods then become covered by your insurance. Thus, reporting mods means you are protecting them in the event of an accident, and you may be able to get reimbursed the value of any mods should your car be totaled. This makes reporting financially desirable as well as a legal obligation.


As you can see, reporting mods to your car insurance company is a necessary process that protects your investment and shields you from legal and financial issues further down the road should the worst happen. Don’t delay, declare your mods today!