Car Upgrades That Affect Your Insurance Rates

Every car requires some form of maintenance or upgrades with time to keep up with the changing technology. However, many forget to inform the car insurance provider about the changes they are making to the vehicle when trying to boost their car. Your car insurance premium can increase or decrease depending on the value or modifications. If you plan to modify your vehicle this year, you need to know how each change can affect the insurance rate of your car.

It may be tempting to think that every modification will significantly impact insurance premiums, but that is not the case in reality. Check with your insurance providers timely, especially if you’re based in a state as expensive with its insurance premiums as Florida. You can check Cheapest Car Insurance policies in this regard here. In this article, we will explore how different types of car upgrades can affect your insurance rates and how you can strive to keep these costs at a minimum:

1.    New Paint

While repainting your car may seem like a harmless add-on that does not even significantly increase the car’s value, some insurance companies may declare their old policy invalid if not informed before the change. Your car’s premium can considerably increase if you decide to repaint your vehicle or get any specialized paintwork done. Decorative decals and such changes can also increase the chances of theft for your vehicle, ultimately leading to an increased bearing on the car’s insurance plan. Other exterior work, for example, adding stickers or polishing, should also be communicated to the insurer to avoid any confusion in the future.

2.    Changing Interiors

If you plan to make any significant changes to your car’s interior, it is vital to inform your insurer before the changes and give them a detailed report of each shift. Some common modifications to the car’s interior include changing the steering wheel, car pedals, sound system, or even car seats. Slight changes like changing the seating and covers or even installing a mini screen can affect your insurance if they increase the overall value of your vehicle on the market.

3.    Engine

Engine modification is a widespread car upgrade, usually done to improve the performance and lifespan of the car. While it helps the vehicle improve speed and get quicker acceleration, they also increase the risk of accident and car theft. Any modification to your car’s engine, whether it be adding a turbocharger or nitrous oxide unit, can significantly increase the insurance premium amount.

If you are replacing your engine entirely, an insurance firm may charge an increase in the standard car insurance premium. When you sign up for car insurance, most of the plan is based on factory-installed engines and the manufacturing year of the car. Replacing the original manufacturer’s engine can affect the charge significantly.

4.    Wheels

One of the most common trends nowadays involves changing the standard car wheels with wide tires and alloy wheels. These wheels improve a car’s aesthetic and worth but make it more prone to theft. This, again, increases insurance costs. Changing the wheels can even enhance a vehicle’s lifespan, requiring you to change the length of your insurance plan. Inform your insurance provider if you plan to make this upgrade.

5.    Suspension System and Brakes

Changing your brakes and suspension system for improved security can significantly affect your vehicle’s risk profile and your car safety score. This can decrease the insurance rates, so notify your insurer about the change and the updated safety score. Upgrading brakes can increase your vehicle’s value and lifespan and lengthen the policy time.

Installing carbon-ceramic discs and drilled or slotted discs can significantly increase the worth of the vehicle as these additions can be expensive. Hence, installing such additions can also increase your insurance rate, which is compatible with the increased car value.

6.    Cold Air Intake – Filter Modification

Installing a cold air intake can free up the airflow directed towards the engine and feed it more condensed air. This cooler air helps bring more oxygen and can significantly improve the machine. While installing an air intake seems like a slight modification, it can enhance the life of your engine and decrease your insurance premium.

7.    Exhaust Upgrades

Many vehicle owners prefer improving the exhaust system to improve the engine and workability of their vehicles. An improved exhaust system can aid waste flowing out of the machine, affecting the system’s efficiency. Making the exhaust bigger affects your insurance rates positively and reduces the insurance premium.

However, note that states may consider big bore exhausts illegal, as they contribute to noise pollution by making your vehicle loud. This upgrade could land you paying an on-the-spot fine. Any illegal additions to your car will automatically invalidate your insurance policy.

8.    Sway Bars

Installing sway bars is a popular choice among vehicle owners as they help decrease the body roll and connect the right wheels with the left ones. Sway bars are also called anti-roll or stabilizer bars and are often considered an investment in improving the safety of the vehicle and the driver. This can significantly affect the safety score and hence the value and lifespan of a vehicle. This can lead to a decrease in car insurance rates.

Endnote

It’s prudent to discuss modifications and additions to your vehicle with your insurance provider before you begin implementing them. Claiming for insurance refunds may result in rejection if the insurance company is not notified about any upgrades by the vehicle owner during the insurance term. It is also essential to go for authorized service garages for any enhancements and use certified parts when changing things into your car.

The most significant changes you can make to your vehicle that can affect your insurance rates include modifying or replacing the engine, adjusting the wheels to premium quality ones, modifying brakes, and shaking up the vehicle’s interior with repainting. Some insurers will even alter your insurance rates if you decide to change the interiors, as that can increase the value of your car.

Be mindful of the insurance provider you select for your vehicle and go through their terms beforehand to avoid confusion in the future. Each insurer has a different policy and may or may not be willing to alter their approach to you making upgrades to your vehicle. We recommend meeting up with representatives of the insurance companies and discussing the policies and proof of policies in detail before signing up.