Some people like to express themselves through their clothes. Some decorate their house to reflect their personality. And some take this thought forward by modifying their beloved car. You might’ve seen cars that feature high-end graphics, extra bodywork, specialized paintwork, etc. These cars are modified versions of standard cars available in showrooms. Such changes are bound to have an impact on your car insurance premium. Thus, if you are planning to modify your car, read ahead to know its impact on your car insurance plan.

Planning to Modify Your Car? Know Its Impact on Your Car Insurance Plan - Acko

Your Car Insurance Policy

Modifications to your car will severely affect your car insurance premium if you have a Comprehensive Car Insurance policy. If you have purchased a basic Third-party Liability policy, aesthetic changes to your car will not have an impact on its insurance premium, as this policy doesn’t cover damages to your car.

Types of Car Modifications

Your car’s insurance premium will change depending upon the extent of modifications made to your car. People usually go for the following car modifications.

  • Exterior Car Modifications

These type of car modifications focus on the car’s exterior aesthetics. A paint job or visually appealing graphics on the car’s body are common modifications. Some people go for extra lights as well. Changes in the car’s body work such as bonnet, flared wings, panels, tires, etc. also fall under exterior modifications. Such changes do not directly affect your car’s performance. You need to inform your car insurance company in case you make such modifications.

If you do not inform and such parts get damaged, the car insurance company might not approve the claim as those parts weren’t installed while insuring the car, neither was the company informed. Once informed about the modifications, they can take a call whether the car needs to be inspected or not for a change in its insurance premium. A modified car looks more appealing, making it more susceptible to theft. Anything that increases the car’s risk profile will shoot up its insurance cost.

  • Interior Car Modifications

Externally-fitted parts (not fitted by the manufacturer) inside a car are not covered under a standard Comprehensive Car Insurance policy. However, they are covered if you purchase an Accessories Cover Add-on along with your policy. Thus, if you plan to insure newly-added (not provided by the manufacturer) accessories for car, example – music system, you need to purchase the above-mentioned Add-on and intimate your insurance company about the same. Going for an Add-on will increase your car insurance premium.

  • Performance Enhancement Car Modifications

Changes to the car’s engine, air filter, exhaust system, etc. have a direct impact on the car’s performance. Adding nitrous oxide to your car’s mechanics increases its speed. A car driven at a higher speed is vulnerable to accidents and damages. Thus, such changes increase its risk profile and consequently increases the car’s insurance premium.

The cubic capacity of a car’s engine is one of the most important factors that determine its insurance premium. Any change that affects the engine’s cubic capacity changes its car insurance premium. Higher the cubic capacity, higher the car insurance premium.


Inform your car insurance provider as soon as you modify your car. Do not wait till you renew or buy car insurance online. Different insurance providers might have a different approach towards handling such modifications. They might want to inspect the car thoroughly in some cases or analyze the impact of the changes on the car’s exposure to risk. Thus, informing your insurance company might not always increase the cost of your car insurance policy. However, not informing it might be perceived as not disclosing information willfully, which can prove counterproductive.

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