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Sorry to sound like a wet rag but most insurance companies load up modified cars worse than "off the peg" cars. Shop around and be honest when getting quotes. If they find you have modified your motor and not told them they may refuse to pay out. That has a double whammy meaning you not only are...

Basically you are trying to get as much MASS of air in as poss. Cold air is cooler so for a given pressure you will get more mass of air into the cylinders. More mass equals more power. Any way of getting colder air into the induction will improve performance so taking it from outside the engine...