Ever thought about sprucing up your car`s looks with a new set of alloy wheels or tinted windows? Be aware that many of the modifications that are available for your vehicle may end up having an effect on your insurance rates. Knowing exactly what kinds of modifications will negatively impact your current insurance premium will give you the upper hand when it comes to keeping your insurance affordable while giving your car a spiffier appearance.
Common Types of Car Modifications
Aesthetic car modifications largely focus on improving a vehicle`s overall appearance. These aesthetic mods range from window tint to custom molding and new paint. When tastefully done, aesthetic mods can even add to a car`s resale value.
Performance modifications focus on improving the vehicle`s current handling, acceleration and braking attributes. The type of performance mods available usually vary depending on the vehicle in question. Sports cars often benefit from handling and engine tuning mods while off-road vehicles benefit from suspension, differential and other mods that improve their ability to navigate tough terrain.
Practical mods are usually much smaller and more sensible in comparison. Drivers often add aftermarket stereos, GPS systems and DVD players for their own comfort and that of their passengers.
How Car Modification Impacts Insurance Rates
Aesthetic mods often attract attention to a vehicle, making it a more likely target for car thieves and vandals. Some practical mods, like GPS devices and aftermarket car stereos, also attract thieves if they`re left in plain view. Other mods make it harder for drivers to safely operate their vehicle. For instance, overly dark window tint actually reduces outward visibility under nighttime conditions.
Performance mods make it more likely that you`ll receive more traffic citations or even get into an accident due to aggressive driving or excessive speed. Performance parts are also expensive to replace, making insurance providers all the more reluctant to follow through with a claim.
Why Does Car Modification Increase Premiums?
There are plenty of factors that often come into play when calculating insurance rates, from the driver`s gender and age to marital status, vehicle make and model, mileage and even the area where the owner currently resides. The presence of car modifications is just one of the many factors that most insurance companies take into consideration when figuring out insurance rates.
As it turns out, there`s a good reason why some car modifications have such a dramatic impact on insurance rates. Most car modifications are made by young men, often seen by insurance agencies as high-risk drivers with higher than average accident rates and moving violations. In most cases, a young single man who drives a highly customized and modified vehicle will either end up paying steep premiums or be refused coverage altogether.
Should I Update My Policy to Reflect Car Mods?
When it comes to insurance, honesty is always the best policy. Nevertheless, many people choose not to inform their insurance providers about the modifications they`ve done to their vehicles, usually to keep their insurance rates from rising. If your provider finds out about an unreported modification in the event of a loss, chances are those mods won`t be covered. In some cases, you might even lose your insurance coverage altogether.
The impact car mods have on insurance rates can vary thanks to a wide range of visible and hidden factors. Therefore, it`s always a good idea to talk to your insurance provider about how
car tuning can affect your insurance rates beforehand.
