On the planet of pistons, panels and petrol, modifications equal sex appeal. You do not see music videos with beautiful women draped throughout a stock-standard Holden Commodore which has just rolled off the factory floor. Unfortunately, though, the advertisers never indicate what it costs to insure those hotted-up rides. Probably because individuals nationwide would simply faint before their televisions! When it comes to modifications and auto insurance, there are several insurers which will reduce your premiums down should you haven’t made any modifications to your car. Bikini babes is probably not accumulating for you at the traffic lights – but owners of ordinary cars pay less for auto insurance. We look at why.
What is a modified car?
Most car insurers interpret the term ‘modification’ in a fairly strict sense, to include any change to the vehicle that leaves it in different condition compared to factory specifications. So, modifications for your car that could affect your insurance premium can include:
Body modifications like spoilers, skirts or scoops
Engine modifications to improve torque or horsepower
Handling modifications like using stiffer than indicated springs, lowering the ride height, etc.
Using an aftermarket part as opposed to a factory-specified part.
For those who have a relatively new car, however, and take your car to a dealer-approved mechanic for servicing and repairs, you are unlikely to have these modifications in your car. But why does that lower your insurance premium?
Car modifications and insurance premiums
When car modifications alter the properties of mechanical components (for instance, giving your car more power, changing the handling, etc), there normally has not been a safety evaluation done about the new setup. Insurers along with other parties do not have a reliable supply of details about whether your vehicle seems apt to be involved in a crash in line with the modifications, and the only practical avenue is to assume that it is more likely to become involved in an accident. Obviously, when you are more prone to be involved in an accident, your vehicle insurance premiums increase to cover that risk.
This is also true of aftermarket parts or accessories – they might ‘t be made by the original manufacturer and don’t come with an associated safety assessment, which means this might improve your chance of being involved in a crash.
Did you know…
Not all auto insurance companies actually ask you in case your car is modified by any means. Some companies assume that most cars are modified (aftermarket parts are not unheard of, in the end), and set your premiums as much as reflect that. Whenever you come across a auto insurance company that asks whether your car continues to be modified, you can be certain when it hasn’t, you will be seeing lower premiums because of it.
If you have a brand new or unmodified car
You will find quite a large number of drivers in Australia which have their cars serviced regularly and employ factory-specified parts… and many of them are paying more than they have to for his or her auto insurance premiums! Look for a auto insurance company that asks questions, instead of making assumptions about the state of your car if you want to pay less for your premiums, and save money on which makes you happy.