Most of the time we hear people say car modification can cause you much of your premium. This is somehow partially true. According to some experts, this is one factor that is usually misunderstood by many. If they hear modification, it means higher car insurance quote. Actually, premium depends on the changes that you make with your car. Let us try to categorize the changes you want to give your car and if it affects the premium you pay.
The two categories of car modification are the following:
Performance modification-These are the changes which improves the performance of the car. It has something to do with the speed. This changes are usually done by enthusiastic car owners who are bored with the average speed of their car and they want to make their car go faster than the normal speed.
Aesthetic modification-These are the changes which make your car attractive not only to the common people but also to thieves and vandals.
The changes which accompany the performance modification include engine tuning. Tuning is the alteration of the internal combustion engines to produce the highest performance of the car. This may cause a higher premium because car insurance companies believe that if the engine’s power output is excellent, it is vulnerable to crash.
Of course to insurance companies, it is just practical to increase the premium rate from the business point of view. Other companies even do not want highly customized cars if possible because they are considered as high risk. In other words, the higher the risks of the car, the higher car insurance rates will be given.
On the other hand, beautification of your car does not cause you much. This includes changing of your wheels to a new alloy one. Almost anybody could do this because there is a wide range of alloy wheels to choose from. The good thing here is that it will not affect the premium rate particularly if locking wheel nuts comes with it. However the downside of this is that if the new rim is damaged, it will not be replaced by the company.
Another change which does not affect the insurance rate much is installing tinted windows. Tinted windows make your car look glossy and to some extent will prevent thieves from looking what is inside your car which may attract their attention. Some insurers though may charge 10% of your premium for tinted window modification. So if your premium is $450, it is likely that you have an added $45. This varies on the different car insurance companies. Again it is safe to inform them of any alteration.
Generally speaking, any refinement of the car which changes the performance cause you more premium rate to pay while those that only give your car artistic look causes a little less money. Sometimes it is easy to just add some adjustment but lost the picture of the consequence of doing such. So the best thing to do is to foresee if your budget can handle the modification you want to impose to your car.
