26 Apr 2012

Modified car insurance

TOPICS:
Modified car insurance

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!

Agreed value

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.

This is general information only and does not take into account your personal objectives, financial situation or needs. You should consider the relevant PDS available on this website prior to purchasing any product. Choosi offers insurance products from a range of brands but does not compare all products available in the market.
TOPICS:

Search blog

Topics

Signup to our newsletter

GET MORE ARTICLES

Receive articles, news & tips as soon as they are published. We'll send occasional updates on the latest product offers, competitions and more!
By subscribing you consent to us contacting you and agree to our Privacy Policy



Related articles

New vs second hand car
30 Jun 2014

New vs second hand car

The biggest question people often ask when it comes to buying a car is whether to buy a new or used one. Both options have their own pros and cons, which should be considered carefully before you start shopping around.

Read More
TOPICS:
Your easy guide to understanding car insurance
30 Dec 2013

Your easy guide to understanding car insurance

Find out different types of car insurance available to you, and compare them to find out which one suits you best.

Read More
TOPICS:
Things to consider when comparing car insurance
23 Dec 2013

Things to consider when comparing car insurance

Find out what exactly you need to know before purchasing car insurance, and compare car insurance policies to see which suits you the best.

Read More
TOPICS:

Ready to compare?