Car Insurance for modified cars - tips and a guide

[waynne]

Here is a long overdue thread. Car insurance - all policies state "Has the car been modified, altered or adapted from the manufacturers original specification or has it been tuned.

All insurers need to know if a car has been modified. The stats of the insurers generally show that modified cars are involved in more claims, not just accidents but there is a theft risk. There is also the possibility that lower suspension or wider wheels could adversely affect the handling of the car so the model they rated and gave a group to does not apply to your unique vehicle. So an underwriter needs to agree 'terms' of cover.

Even stickers could represent a 'Moral hazard' to the insurers. Failure to notify insurers could render your insurance invalid leaving you to face prosecution for failure to insure your vehicle or if a claim is paid on your behalf they could well ask for reimbursement of amounts paid out for you so even if you are Third Party Only you could lose out.

Always keep a copy of all corresponce sent/recieved in response to a modification being notified.

Insurers may insure car at normal terms (no extra premium), Apply terms (extra premium, & or higher excess & or agreement to replace modified parts with standard parts.

State honestly what you have done but note that a SPORTS EXHAUST is the same thing as a 3inch bore stainless steel exhaust with a 25 year guarantee. (One sounds much better to an insurer than the other.) As does a high performance air filter and washable direct replacement air filter. If a chip increases MPG state this as a big reason rather than a side effect and then state that it also gives slightly more power as a secondary reason.

They will also look at the base car - diesels are favoured over petrol. A £500 car with a £1000 ICE install and £2000 worth of 20 inch alloy wheels is an obvious increased theft risk and most insurers would refuse this unless you agree that they can replace the stolen items with standard parts.

Insurers want to see enthusiasts that love cars and look after them rather than the boy racer who wants to impress his mates in the 7/11 car park.

Getting cover first then applying modifications later to the car often means the insurer will listen to you whereas they would refuse a new person with no record. Buying an already modified car is also a good bet - you didn't do the Modifications so theoretically are not so much of a risk.

Modified friendly insurers - Norwich Union, Adrian Flux - if you have any others please post them here. Many Lloyds syndicates will be willing to listen and offer you terms.

[frankly.frank]

Some good advice - I like looking here for to get cheap insurance http://www.moneysupermarket.com/motor/ Good quotes on this thing

[waynne]

Cheer for the tip frank - the site does save a lot of time - but it's not too helpful on modified cars so there is still a number of calls to make but at least it focusses on the cheaper quotes.

[HDi fun]

If you're car is modified in any way you MUST tell your insurer. Insurance companies and underwriters themselves are wising up to the opportunities available for modifying cars to give substantial increases in power and torque.

It's not so much that they don't want to insure you, but please do understand that insurance companies are businesses. Like any business, they operate to make a profit. If they can avoid meeting a claim they will do so. Non disclosure is not defensible by pleading ignorance.

You'll find underwriters more accomodating if you can provide evidence of the Modifications carried out, by whom they were carried out and the resultant increase in power delivery.

I drive a Peugeot 406 with the 2.2 16v diesel engine. It's been lifted (by means of an ECU re-map) from 136bhp to a healthy 192bhp, with about 330lbft of torque on offfer - yep, that's right 330 and, no, I have not confused this with Nm. As such, it goes like a bloody missile. Even punchy 2.5 to 3.0 litre V6 petrols can feel lame by comparison. It's the torque that you're driving, yet we all talk power! Never done an official 0-62 test, but an unofficial one gives about 7.8 seconds! The best bit is the midrange grunt - 50 to 70, about 3 seconds IN FOURTH!!

Modern turbo-diesel units and superbly receptive to ECU tuning. Please avoid the dreadful DIY boxes - they're likely to destroy the fuel pump.

My insurer is happy to cover the car, obviously for a slightly higher premium, but it's nice to relax and know that I have played fair and safe by all parties.

[cheryl_88]

i completly agree with u, it is safe to no that your completly insured, howeva, why is it, that when i tried to insure my car, because i have onli just passed my test, i had alot of trouble finding a company that wud insure me knowin that my car had alloys and a body kit, i dont think this is fair. i understand that rates may go up, but it givs the impression that we cant have the cars we want as insurance is too high! opinions any1?

[waynne]

The insurance market is fragmented into specialist areas. One market for young drivers another for modified cars. If you fall into 2 markets then the number of insurers that offer cover reduces to just a few. As soon as you fall outside the MR AVERAGE the insurers get very picky as these are often the cars that have claims which is something they want to avoid. It does seem unfair but that is life as they say.

[cheryl_88]

BUT what is to say that havin a modded car means ur more likely to crash?

[waynne]

Nothing at all. A modified car is more expensive to fix as the bodykits cost more and are harder to get than standard parts. There is usually a special paint job involved as well which can be a nightmare to match up. The modded car is more attractive to thieves and vandals (its - not me this is a statistical fact). Sometimes cars suspension and wheels are not set up properly and the car is more dangerous to drive or harder to handle than the standard car that the insurance companies rated the premium on. So your not more likely to have an accident but you are more likely to have an expensive claim than most!

[cheryl_88]

makes sense!

[p4paco]

i'm with Norwich union.
when i told them about my Modifications, they didnt even raise an eyebrow.
the chap said i can have "UP TO 3 MODIFICATIONS" with no additional surcharge on my premium. but they're not interested in covering my ice install. they will only pay out upto £500 for ICE/stereo
their service is TOP notch, my golf Had a misfortunate ending, so i've been through the processes.

i dont think anyone will notice that a car has been remapped Mr HDI FUN, because it would be a very long winded process, they would have to download the data on the ECU an compare it with another data map from anothe car EXACTLY the same as yours. and Manufacturers often change specs/ hardware suppliers etc over the years of building the same model.
so it is very difficult.
in my experience
the insurance engineer walks around the car for the condition, looks under the bonnet, wheels, and scrutinizes the accident damage and then checks the mileage to put a value on te car..

Nobody checked the ECU on the golf. Remaps dont really leave any evidence.
i would advise everyone to tell them abot any other Modifications though.
and like Waynne said;
be careful to discribe your Modifications in their best light.
Coz Insurers like car enthusiasts more then Boy racers.