Modified Car Insurance
Modified car insurance in Ireland is specialist cover required when you’ve made aftermarket changes to your vehicle after purchase.
Modified cars are often treated very well by their owners. The cars are well cared for, and the modifications are designed to reflect the owner’s personality and to be seen at public shows and events.
However, because these vehicles have been modified in ways that may be perceived as increasing risk, they may face significantly higher insurance premiums. The main issue for insurers is assessing the extent of the car’s modifications and whether any changes have affected the vehicle’s safety standards.
What is a Modified Car?
A modified car is any vehicle that has had its features changed from its original factory specifications to increase its power, comfort, design or overall driving experience.
There are a range of ways in which cars can be modified, including design changes, performance enhancements and functionality upgrades.
Even small changes can make a big difference to your modified car insurance policy, as the insurer must question whether any of the modifications have affected the safety or performance of the vehicle. You’re obliged to inform the insurance company of any modifications, no matter how small you think they might be.
Why Do Modified Cars Need Special Insurance?
Modified cars require specialised insurance because modifications to the car’s factory specifications can increase risk to its safe operation. Insurers focus on ensuring that the cost of a vehicle’s repair or replacement is affordable and that modifications to a car don’t increase risk to third parties, such as other drivers or pedestrians.
Repair and replacement parts: A modified car will, by definition, have elements added that are not part of the original valuation of a car with factory specifications. These new elements are usually expensive, hard to source, and require qualified mechanics to install them.
Theft risk: A modified car is designed by its owner to stand out. This makes it a higher risk level for theft. Thieves are attracted to the car in ways that they may not have been if it were without modification.
Safety standards: When a car leaves a factory, it has passed recognised safety inspections. Once modified, the assurance of its built-in safety standards is compromised, and an insurer cannot rely on them. All non-standard modifications must be inspected to ensure they do not affect the safety of passengers, pedestrians, or other drivers.
In general, any modifications that affect performance, bodywork, interiors, or window changes will require special modified car insurance cover in Ireland.
What are the Different Types of Car Modifications?
The following are the major types of car modification. Each modification, no matter how small, should be communicated to your insurer or your policy may be invalidated.
Design changes: Many drivers enhance their vehicle’s exterior to boost its profile, increase visibility on the road, or stand out with its design. Examples include lowering the suspension, adding LED lighting or adding alloy wheels.
Performance: These changes affect a vehicle’s speed, power, braking, and manoeuvrability. The car may be adapted with new engines, exhaust systems, or braking systems to boost its performance.
Upgrades: These changes focus on adding new functionality to the car. It could include new interior sound systems and speakers, modified parking sensors, or internal or external lighting.
Aftermarket performance modifications are those made by a car owner after the vehicle leaves the factory.
Aftermarket performance modifications differ from factory-specified high-performance vehicles, which are made at the factory. It’s common for a brand to offer a higher-spec version of its vehicle with performance above the standard model. This higher specification is typically fully compliant with safety requirements, and an insurer can rely on the fact that the parts, installation, and testing were carried out under licence.
An aftermarket performance modification could include engine tuning to increase power or suspension lowering to boost speed, both of which could increase the risk of accidents.
Many drivers choose to add cosmetic modifications to their car after purchase. This is often to personalise the vehicle and make it more reflective of the owner’s personality.
A very common cosmetic modification is the addition of tinted windows. Insurers need to know about this type of change because, while it may seem minor, it could affect visibility or be illegal in certain markets.
There are many other cosmetic changes that can be undertaken, including lighting, paintjobs and detailing. Each needs to be communicated to the insurer for risk assessment.
Aftermarket functional modifications are changes to the equipment, seats, sound systems or parking sensors or other related technology on board a vehicle. Although they may seem cosmetic or helpful to the driver, each presents risk in its own way. Each functional modification must be added to your policy to ensure you are covered.
No. Options fitted by the manufacturer when the car was new are not modifications. Each of these modifications is made in accordance with specific safety and environmental regulations applicable to the market and to a compliant factory setting. The insurer can rely on the manufacturer’s description of the higher-spec model and the differences it may make to the car’s power and speed.
How Much Does Modified Car Insurance Cost in Ireland?
It’s difficult to estimate the cost of modified insurance because each quote is vehicle-specific. Each modification type affects the car’s overall safety in different ways, and a cumulative list of changes can add up to a very high policy cost.
The average cost of standard insurance in Ireland is around €700. Modified insurance will significantly increase the premium, especially if the changes involve engines or braking systems; it could easily double. To obtain a reliable price, you will need to discuss your car and its modifications with an individual insurance provider.
Drivers of modified cars tend to be younger and may lack driving experience, which will also be a factor. There can also be significant price variations between providers, so it is well worth comparing quotes across a range of competitors.
What Factors Affect Modified Car Insurance Costs?
Modified car insurance costs are shaped by multiple factors, depending on whether the modification is cosmetic, functional, or performance-focused.
Engine power: This is a performance modification and will have an immediate effect on insurance premiums.
Acceleration: Any modification to the car’s speed can result in a higher insurance premium.
Top speed capability: Increasing the car’s factory-set top speed is a high-risk modification that affects drag, gears and engine power.
Vehicle value: the value attributed to a vehicle changes dramatically after modifications. It may even reduce the car’s value, even if the owner perceives the changes as beneficial. This is due to the increased risk factors introduced to the vehicle.
Driver age: As with all car insurance policies, the insured driver’s age is a major factor in assessing risk.
Driving experience: Documented driving experience can help mitigate risk.
Claims history: Your claims history is a vital document for setting a policy price.
Annual mileage: If a modified car is used for display at shows and events, it may have low annual mileage, which could help reduce insurance costs. If a car is modified for high performance or speed, reduced mileage is unlikely.
Security measures: any modifications designed to enhance security, such as installing alarms, will affect your policy. These should be discussed in detail with your provider.
Storage location: If you store your car in a secure location, such as a locked garage, make sure to communicate this to your provider, as it may help bring your policy price down.
Intended use: Policies differ for modified cars, which are used in shows or at events and those that are modified for speed and used frequently. Ascertain the correct use type with your provider.
What Insurance Cover Do You Need for a Modified Car?
Modified car insurance requires full comprehensive coverage that lists all modification types the car has undergone. This full coverage reflects the higher-risk category under which a modified car is insured and helps providers secure the best possible coverage.
Third-party insurance is generally unsuitable for modified cars, as the potential losses from theft or accident-related damage are very high. If your car has minimal cosmetic modifications, you may find an insurer that will cover you for third-party only.
Modified cars are attractive to thieves and so they are at higher risk of theft. Depending on the type of modification your car has received you may be able to find an insurer that will cover you for third-party fire and theft.
Learn more about third-party fire and theft insurance and how it works.
With a comprehensive policy, you may be able to set an agreed value against the car and have it listed in your policy. This depends entirely on the modifications the car has undergone and how your insurer assesses them. Given the investment the owner has made in the modifications and the higher risk they incur, comprehensive insurance is the ideal level of cover for most modified cars.
What Is an Agreed Value Policy for Modified Cars?
An Agreed Value Policy for modified cars is a specialised insurance policy that sets the agreed value of the modified car at the start of the insurance cover.
It details factors such as:
Modifications: The document lists each modification type, including specialist parts used, engine changes, custom paintwork, and any other deviation from the manufacturer’s standard factory model.
Depreciation: In the case of a loss of a vehicle, the policyholder will receive the agreed value stated in the policy, despite any depreciation that might have occurred since the document was drawn up.
Customisation: It documents the level of customisation applied to the car, enabling the true value of the modifications to be recorded.
Proof of value: the Agreed Value Policy often includes photographs and certificates of modification that support the added value.
Do All Insurance Companies Cover Modified Cars?
No. Not all insurance providers offer car insurance for modified cars. Normally, a specialised provider is required and rates vary. It is strongly advised to shop around and compare quotes with competitor providers.
What Do You Need to Insure a Modified Car in Ireland?
To insure a modified car in Ireland, in addition to standard licence and identity documentation, you will need:
A full disclosure document: This should list all modifications and deviations from the manufacturer’s specifications.
Modification receipts and invoices: You will be required to prove that all modifications were carried out by qualified mechanics. You will need to provide receipts and invoices to show to whom you paid for the modifications.
Safety certification: For certain modifications, you may need to have your vehicle tested to prove that it is still roadworthy. This includes seating changes, chassis adjustments or engine modifications.
NCT: The car must have an NCT to prove its roadworthiness.
Modified Car Insurance FAQ
If you don’t declare your car’s modifications, the insurance will be ruled invalid and no cover will be provided.
If a car’s modifications can’t be tested as safe under the NCT, they will not receive a certificate of roadworthiness and will not be able to take out insurance.
Car modifications that enhance security or are purely cosmetic have the lowest impact on insurance premiums.
Modifications to performance and speed result in the largest increases in insurance premiums. If your car is both imported and modified, see our guide to imported car insurance.
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