• Modified vehicle: What’s the impact on your car insurance?

    24 July 2019Christopher Johnson

    A powerful motor to leave people out in the dust, neons like in Fast and Furious to impress them, tinted windows for anonymity, and a loud exhaust system to make them talk: all of these things will impact your insurance coverage whether they are solely for cosmetic purposes or not. Did you know this?

    Performance maniacs, aesthetics enthusiasts and mechanical geniuses, Assurances Multi-Risques would like make you aware of the importance of telling your insurer about modifications made to your car. By doing so, you will make sure to keep your insurance contract in good standing.

     

    Will insurers cover a modified vehicle?

    Did you know that several insurers will refuse to cover a modified vehicle? Indeed, such a vehicle is considered an increased risk by insurance companies as dangerous driving, fire and theft are more frequent with such cars, and the claims are higher because of the car’s increased worth.

    Modifications also complicate claim settlements, and many insurers will simply refuse to insure these cars to avoid any future litigation. Assurances Multi-Risques therefore recommends that you contact your insurance agent or broker if you are thinking of modifying your vehicle, or if you have just done so.

    Here is list of modifications that should be declared to your insurer :

    • Special or personalized paint job ;
    • Lowered suspension (Hellaflush) ;
    • Modified engine ;
    • Transformation of a regular vehicle into a motorhome ;
    • Installation of any type of conversion kit that is not offered through the car manufacturer ;
    • Conversion into a Hot Rod ;
    • Conversion from diesel to biodiesel engine ;
    • Installation of a nitro kit.

     

    How to properly insure a modified vehicle 

    First of all, be honest with your insurer despite the fact that this will complicate your insurance process and that your premium is likely to go up. If your insurer requests a professional evaluation to assess the car’s real worth in case of a future claim, make sure that you deal with an evaluator accredited by the insurance company. Also, please take note that this evaluation will have to be updated at least every two years in order to make sure that your insurance coverage is adequate if your vehicle’s value increases, and to avoid having potential claims underestimated.

    Before buying a modified vehicle or modifying your vehicle, you should contact the Société d’assurance automobile du Québec to avoid any problems. We also invite you to check out the following link to find out what you can and cannot do as far as vehicle modifications go.

     

    Modifying a vehicle requires a considerable investment in both time and money. It would therefore be a shame not to provide adequate insurance coverage for a work of art on wheels! Contact an independent insurance broker specializing in modified vehicles in order to get proper coverage for your precious car and to benefit from useful tips regarding such vehicles. Once you have done that, you’ll be able to drive around free of care (providing the modifications you have made are legal!).