If you're a car enthusiast with a modified car, then you know the importance of insuring your vehicle for repair or replacement if it's involved in an accident.
In general, modified cars are more expensive to insure, but with more competition in the market, it's possible to find an affordable motor insurance policy for your modified car. After all the time and finances you've invested into your car, isn't it worth protecting it against harm?
Why is modified car insurance higher?
Modified car insurance tends to be higher than mainstream car insurance because modifications make it more difficult for standard car insurers to determine the value of your unique car.
Also, cars that are heavily performance modified tend to be involved in more speed-related incidents and are more prone to theft, as they are more highly prized. When this happens, modified cars may be harder to repair or find spare parts for, and all this is calculated in the cost of your premium.
Tips for insuring modified cars!
When choosing an insurance policy for your modified car, you may want to look for insurers who will offer to insure your car for an agreed value, rather than market value. Agreed value is a fixed sum that you choose for your car, while market value will be determined at the time of the incident, depending on the age and condition of your car.
Read the fine print
Before taking out a policy, read the relevant Product Disclosure Statement (PDS) carefully so you're aware of any specific terms and conditions that could affect a claim you make on your modified car. There may also be additional excesses you should be aware of, like an age excess (which is dependent on the age of the driver at the time of an accident) and an inexperienced driver excess (for drivers over 25 who have held their Australian drivers licence for less than two years).
Be honest about your modifications
It is extremely important that you answer all questions about your modifications truthfully when applying for car insurance, as well as informing your insurer about modifications you make after you apply for insurance. Neglecting to do so could nullify your insurance policy so your claim could be rejected when you need it most.
Finding affordable car insurance
You may be able to lower your car insurance premium by keeping your car in a garage and equipping it with a quality car alarm and immobiliser, as this will reduce the risk of theft.
Also, taking an approved driving course like Defensive Driving could reduce the cost of your premium.
Finally, the best way to find affordable modified car insurance is to compare different options, as quotes can vary greatly between car insurers.
These articles are provided as reference material to allow more informed decision making, but are not intended as being a complete source of information on any topic. All readers should make their own independent analysis on the topic to make sure they have considered the aspects that are important to them.