How modifications are treated will vary between insurers, so it’s always important to shop around to get the best modified car insurance.
It’s easy to compare modified car insurance on comparison websites. However, if you’ve got a high-performance car with multiple modifications, it may make sense to get some quotes from specialist insurance companies, too.
Companies that specialise in insurance for modified cars argue they have a better understanding of the needs of ‘modders’ and won’t necessarily regard drivers of modified cars as higher risk. They argue that, in fact, these drivers are passionate about their cars and therefore likely to take better care of them than the average motorist.
A specialist insurance company might also give you a broader range of insurance options in relation to the payout you get if your car is damaged beyond repair or stolen.
Regular insurance companies will normally only offer you the market value of your car; but you might get a higher payout, or more control over what happens to your car, with an agreed value policy or a policy with a salvage retention clause.
Agreed value policies
This is where you agree a figure with your insurer that it will pay out if your car needs to be written off, or is stolen and not recovered. This means the amount you get back reflects the investment you have made in your car – you don’t just get the market value of your car. As this means the pay out is likely to be higher, agreed value policies are more expensive than regular car insurance. In addition to modified cars, drivers of classic cars, kit cars or converted vans might also choose an agreed value policy.
Salvage retention clauses
If your car cannot be repaired after an accident, or the cost of repairs is unfeasible, your insurer might decide to write off your car. When this happens, your car insurer will keep your car. However, if you can’t face the thought of this happening, your insurer may agree to salvage retention. This allows you to buy the car back and either fix it yourself or reuse some of its parts. However, whether salvage retention is available at the point of claim will depend on the level of damage your car has sustained.