Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Car insurance: what the latest modifications could mean for your premiums

Personal_Finance / Insurance Jan 23, 2020 - 02:24 PM GMT

By: Justin_Weinger

Personal_Finance When is a car modified and when it is not modified? No, this isn't intended as a philosophical question, though many motorists could easily feel as though it is when they are trying to navigate the pitfalls of insuring their car. Still, it's a question to which you really need to know the answer.

That's because, if you do need to claim on your car insurance, an insurer could refuse to make the payout if they learn that the vehicle was a modified one without their knowledge. Worse, the insurer could even cancel the policy, as your payments might not have reflected the car's worth.




What exactly do insurers deem a modification, anyway?

That's where things can get hard to decipher, potentially throwing up lots of confusion between the insurer and policyholder - or applicant. Some insurers consider a vehicle modified "if it has been changed in any way since it was first supplied by the vehicle manufacturer."

That's quoting from the British Insurance Brokers' Association (BIBA) in an Auto Express article. However, other insurers can consider even factory-fitted options modifications.

By these insurers' definition, then, a car is modified if it has received "any alteration to the manufacturers' standard specification... including optional extras fitted to the car when new by the vehicle manufacturer or dealer, which improves its value, performance, appearance or attractiveness to thieves." Such extras include panoramic sunroofs and metallic paint coatings.



Do all modifications attract premium increases?

You could easily assume so, but certain modifications do tend to be spared what could be termed the "modifications tax". Roof racks, towbars and locking wheel nuts are all good examples - though, according to BIBA, it remains "prudent" to let your insurer know of these alterations.

You might find that sat-navs are also automatically covered by your existing insurance policy and premiums. However, this isn't necessarily a given; in its own testing, The Sun found that declaring a sat-nav can actually increase the premium by £114.93.

How hard can particular extras hit you in the insurance pocket?

Auto Express has investigated exactly this matter. In its study, it explored how different modifications can affect the premiums of a 123bhp Ford Focus ST Line driven by a 37-year-old resident of rural Hampshire. The cheapest premium for a standard model here was £467.

However, the premium increased by 4.93%, to £490, if aftermarket alloys were fitted. Meanwhile, decals hiked the premium to £541, representing a 15.95% increase. Upgrading the suspension was pricier still, leading to a £553 premium 18.42% higher than the usual price. An additional turbocharger, meanwhile, brought a hefty increase of 177.52% in the premium, leaving it at £1,296.

Top Gear Tuning spokesperson Daniel Kirk told the Express that insurers will charge a "small increase" if the customer informs them of minor tinkering. Still, he adds: "If you're putting massive turbos on it and pushing big power, you will have to find specialist insurers for that sort of stuff." This is where researching modified car insurance online can really help.

By Justin Weinger

© 2020 Copyright Justin Weinger - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in