What is Modified Car Insurance?
Modified Car Insurance is a subcategory of auto insurance created specifically for vehicles that have been altered in anyway. Such changes can be cosmetic addition such as new wheel rims or a spoiler, and mechanical change such as engine tuning or even conversion to a turbo charged engine.
Why is Modified Car Insurance needed?
Increased Value: Such changes actually help to add value to the car. Sometimes a ‘standard’ policy will not cover the full value of the car or enough to cover the cost of the modifications.
Higher Risk: Some modifications can lead to increased likelihood of an accident, or contribute to the commission of a crime. For instance, an enhancement in performance may cause high speed Bendy in driving that may result in an incidence of an accident.
Specialized Repair Costs: Modified cars usually need to acquire particular parts and skills for repairs that costs more than the usual cars.
Key Features of Modified Car Insurance:
Complete Coverage: Modified Car Insurance generally features innovative protections against complete, impact, theft and liability.
Unconditional Value Coverage: Modified Car Insurance lets you and your insurer decide on the price of your car in advance so that in the event of a total loss you will receive fair compensation.
Dedicated Parts Coverage: Modified Car Insurance focuses its provisions on the modified accessorial in the event of an accident to the car or theft of the car.
Higher Premiums: Therefore, when looking for modified car insurance, one should expect to pay a lot of money than you would when purchasing a standard policy.
Important Considerations for Modified Car Insurance:
Disclosure of Modifications: This is a big NO because any changes to the car should be communicated to the insurer no matter how small. If you fail to adhere to these requirements you stand to have your insurance policy nullify.
Judgements and Valuations: You may require judgements or valuations of your modifications in order to determine the true market value of the car.
Specialized Insurers: Modified Car Insurance can also be insured by some insurance companies specializing in this category and these companies normally provide lower prices and better policies.
A Guide to Finding Cheap Modified Car Insurance:
- Compare the Likes of CreditCards.com and Bankrate.com and find out their different rates.
Compare Quotes: Do not agree to be quoted immediately you receive the quote. It is always more advisable to contact many insurance firms with the view of obtaining quotes and comparing the price as well as the policies offered.
Online Comparison Tools: You can compare different quotes from various companies from the comfort of your home with the help of the Internet.
- Many Clients May Want to Consider a Specialized Insurer
Specialized Knowledge: Other insurers are tuned to the specific requirements of owners of modified cars and it might be possible to obtain better prices as well as a more comprehensive chance to select the most optimal insurance plans.
Stronger Relationships: They can also have good working relations with specialty repair shops that will be useful in policy processing and repair work.
- Keep your driver’s license clean
Good Driving Habits: Most insurance companies use the record of the traffic violation to determine recklessness during the road hence help you get cheap insurance quotes.
Avoid Accidents and Tickets: Injury and traffic violation claims also add to the rates you are charged hence avoid them as much as possible.
- Install Anti-Theft Devices
Reduced Risk: Sealing ant theft through using alarms, immobilizers or tracking system, brings insurance premium costs down as a result of reduced risks.
Proof of Installation: Make sure to give your insurance company proof of installation so you can get a discount.
- Defensive driving courses are something that one thinks of
Improved Driving Skills: It’s possible for the course to reduce your insurance rates whilst making you a safer driver as you attend these defensive driving courses.
Certificate of Completion: Fill your insurer with certificate of completion as the necessary measure to take so as to be qualified for the discounts being offered. Another important condition of modified car insurance is the lack of dullness. This is important to let the insurer know of the changes you have made to your vehicle no matter how small they are.
Why is disclosure important?
Accurate Risk Assessment: Insurance companies conduct underwriting with specific characteristics in mind, and modifications are factors that will be considered. By informing them of changes, you enable them to get a better understanding of the risk and make the right decision on the right cover to offer.
Valid Policy: It is a common practice to make changes to your vehicle, but a lack of disclosure will cause your insurance policy to be absolutely null and void in the event of an accident or theft.
How to disclose modifications:
Direct Communication: Insurers and brokers ought to be notified directly about the changes in details, so you can do it.
Written Notification: As with most allegations, documentation in the form of receipts, invoices, photographs, etc. should always be presented to support the allegations.
Policy Review: Get in touch to ask for a policy audit so that you can discover that the change is well represented in your plan.
Appraisals and Estimates:
When making alteration to the car though can be a bit expensive it could however increase the value of that car to a great extent. Thus, appraisals or estimates – the estimations of a vehicle’s worth – are often compulsory to submit to the insurers.
What are appraisals and valuations and why is it important?
Accurate Coverage: An appraisal helps in establishing the right level of covererage to use to protect your investment.
Fair Claims Settlement: Where a vehicle has been written off, a valuation will help you get the right amount in recompense for the value of the car, especially the modifications.
How to obtain an appraisal or valuation:
Professional Evaluator: Get an experienced appraiser to help to determine the value of your car.
Insurer’s Judge: Your insurer may have their own appraisers but it may be wise to seek the services of a third party appraiser.
Documentation: Collect papers like purchase receipts, receipts of repairs, modification records like that of cable matters, etc.
The Effect of Amendment on Insurance Premiums for Modified Car Insurance:
Increased Premiums: Performance enhancements like injection modification or boosting also raise the accident probability and, hence, your insurance premiums.
Specialized Coverage: Particular changes can be very sensitive and may need some sort of coverage in order to be sufficiently protected. For example, such as the brake system or suspension type may require certain type of coverage.
Limited Coverage: For instance, the use of spare parts, or a custom-built body of the car, will not necessarily be catered for by safety or insurance plans. You may require specific supplementary coverage or an endorsement.
