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Whether you've changed your car up with window tints or a petrol turbo, your car insurance might be affected. If it has been heavily modified, you might need specialist car insurance, which tends to cost more. But before you go there, we've listed how normal car insurers cover modified cars below.
|Company||What does it cover?|
|Budget Direct will cover you for modifications you've told it about that it has approved in writing. If you have any further modifications planned then these should also be communicated.||Get quote|
|Bingle will cover modifications and accessories that are permanently fitted to your car as long as they don't appear on Bingle's list of exceptions.||Get quote|
|Real states it will cover "accessories or modifications made to your car that you have told the insurer about and that they've agreed to cover", but unfortunately doesn't mention any more specifics than that.||More info|
|Youi may provide cover to legally modified cars provided you tell it about the mods and it has agreed on specific amounts that are applicable. Examples of legal modifications include:||Get quote|
|Virgin says you must tell it before you make any modification to the car, but doesn't highlight which mods it does or doesn't cover.||More info|
|Coles does not specify which modifications are or aren't covered. The PDS just states that Coles must be notified of any modifications to the car.||More info|
|AAMI car policies automatically include cover for modifications and accessories up to the amount your vehicle's covered for, you just need to let AAMI know what accessories or modification you've added to your car. You'll also need to make sure your car is valued correctly and includes those modifications.||More info|
|NRMA states it will cover "any modifications, options or accessories that are attached to your vehicle".||More info|
|Everyday Insurance doesn't state which modifications are covered, it just says you must notify it if your car has been modified.||More info|
It varies depending on provider, but modifications covered by most insurers include:
Modifications typically not covered by mainstream insurers include:
CTP greenslip insurance is the only mandatory car insurance but if you'd like further protection then it's worth considering comprehensive, third party fire and theft or third party property damage car insurance.
With certain modifications, such as those listed above, you may not be covered by a standard policy from a mainstream insurer. Instead, you'll need to take out one of the following with a specialist insurer, designed for modified vehicles:
The following is a list of insurance companies who offer modified car insurance for exotic or historical vehicles in Australia:
Enthusiast car insurance
Lumley car insurance
Specialist car insurers appreciate that people take great care in investing time and money into their vehicles and are therefore more willing to insure vehicles with performance-enhancing modifications. Certain modifications, such as to the engine, chassis or suspension, may prevent you from securing cover from a mainstream insurer or make the premiums unreasonable.
Specialist insurers usually cover unique modifications by adding substantially to the excess you pay. They also tend to charge more for more powerful vehicles. Boosting your car's power by 20% will probably boost your premiums by at least 20% as well. You won't necessarily be able to mitigate the cost increases by installing modifications for safety, because the added value of the modifications still contribute to the overall cost of the vehicle.
Specialists are particularly good at taking care of modified classic cars. They are better able to negotiate a more accurate agreed value for the car rather than simply resorting to market value, while understanding the needs of the owner.
For example, they may offer flexible lay-up periods for classic cars which don't see much use. They are also likely to offer you the choice of your own mechanic and the option to retain valuable or rare parts salvaged from your car in the event of an accident. Mainstream insurers can rarely offer such flexibility for modified classic cars.
When looking for modified car insurance you'll have to decide with market or agreed value cover. In most cases, it will probably be best to go for an agreed value policy, as outlined below:
This depends. How cool is your car? Like any policy, there are plenty of ways to reduce your premiums when buying modified car insurance. These include:
Modifications which are typically permitted include:
Modifications which are typically not permitted include:
There are 2 main reasons that a car modification will boost your premiums:
Exactly how much a particular modification will affect your premiums really depends on the specifics of the modification. The only general rule is that an insurance company will be much more willing to give you a good deal if the modification has been installed by a licensed professional, rather than by you.
The cost of your car insurance usually differs depending on your circumstances. Your gender, the type and colour of the car you drive, the amount of cover you need, your driving experience and other factors will have an impact on your quote. Always check the product disclosure statement (PDS) to make sure which product is best for you.
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