Is modified car insurance difficult to source?

Car Insurance for modified vehicles is never going to be as easy to find and arrange as standard motor insurance. However, it does depend on the type and degree of modifications that have been made to a car. The way that insurance rating algorithms work is extremely complicated, but the principles are easy to understand. There will be several factors that determine a base rate, such as your age, the car insurance group, the area you live in and the level of cover you require. Once this base rate is obtained various discounts and “loadings” are applied depending on the individual risk.

It is these “loadings” that are applied as a result of vehicle modifications. The amount of loading is related to the sort of modification that has been made. For example, a set of alloys is quite commonplace these days, so a lot of companies will either not load at all or apply a small percentage loading. Conversely, a rattlesnake bodykit on an Ford Escort 1.1 LX will more than likely attract a much heavier loading.

In addition to increasing the premium, certain modifications will incur an increased excess in the event of a claim. The degree of classification of car modifications and their associated rating implications will vary from company to company. We described a percentage loading system above, it may be that some insurers operate on a points system, with discounts attracting minus points and loadings positive points. Once the points total is calculated, it is converted into pounds.

If you have spent a lot of time and money modifying a vehicle, maybe you have given it a unique paint job or a transmission/engine overhaul, then a standard car insurance policy is not going to regard your vehicle as being worth anymore than a standard car. The reality is that within the motor trade the vehicle probably isn’t worth anymore, but it is to you and certainly your wallet! Firebond – a modified car insurance specialist have developed a policy that would provide an agreed sum of money over and above your standard, market value, payout in the event of a total loss situation (i.e. the car being written off after an accident). This agreed sum would cover things such as mechanic works undertaken or modifications.

Firebond are based in Cambridgeshire and have extensive knowledge when it comes to specialist insurance – they can be contacted on 0870 444 0556.

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