Car insurance for a modified car

You don't have to drive a slow car to find affordable car insurance - even if your vehicle is kitted out with everything from a full body kit to a turbocharged engine you may still be able to find a competitive deal.

Here we look at the cost of modifying your car and how to lower your premiums.

Do modifications cost more?

Unless you're fitting security or safety devices to a car, then modifications will usually cause premiums to rise. This is because insurers base premiums on a number of risk factors - and modified cars are often more expensive to repair or replace. Those that have been modified for increased performance are also generally deemed more likely to be involved in high impact accidents.

For example, we compared quotes for a 27-year-old male driver from Merseyside with a 2005 Ford Focus GHIA - who has five years no-claims and agreed to a £250 excess. With no modifications his vehicle cost just £380.89 to insure with the cheapest conventional insurer. However, by modifying the vehicle with a turbocharged engine, the cheapest quote from a non-specialist insurer leapt to £864.37 - more than double the original cost. Fitting a non-standard engine and making exhaust system changes caused premiums to rise even further - in this case the cheapest quote from a non-specialist was £1,760.71.

Crucially however, with a specialist insurer the quotes remained affordable. With a turbocharged engine the cheapest quote for the vehicle was £384.17; while with exhaust system changes and a non-standard engine the quote was just £497.24 - more than £1,000 cheaper than the cheapest conventional insurer.*

Are specialist insurers always the best option?

Though the specialist insurer offered substantial savings for our driver, you shouldn't assume that a specialist will necessarily offer the cheapest deal for you. Insurers assess risks in different ways and don't just take into account the vehicle and its modifications - they also consider your circumstances including your job, marital status and driving history; your address, such as whether you live in a high crime or busy traffic area; and your annual mileage.

As such, quotes can vary widely between insurers, which is why it's vital to take an overview of the market. Comparison websites can compare quotes from more than 100 insurers with one search and may also include several specialists in their listings so they should be your first stop when shopping around.

Of course specialist insurers can bring other advantages too - namely cover features designed specifically for modified car owners. These may include:

• Advanced driving course discounts: By completing an approved advanced driving course you may earn a discount from your insurance provider.
• Agreed valuations: Agree what your vehicle is worth from the outset so there are no disputes when it is time to make a claim.
• Limited mileage discounts: If your modified car is only used as a secondary vehicle, consider agreeing to a mileage cap to earn a discount.
• Owners' club discounts: Money off your premiums if you are part of an owners' or manufacturer's club as this gives an insurer the impression you are more likely to take care of your vehicle.
• Track/race day cover: Insurance for your vehicle if you plan to take part in special events such as track races, hill climbs or rallies.

Are there other ways to save?

In addition to shopping around to ensure you're getting the most competitive deal, look at how you can lower your risk of making a claim - doing so should lower your premiums. Here are some ideas to consider:

• Avoid convictions: The better your driving record, the lower your premiums - so abide by the rules of the road and avoid convictions for offences such as speeding.
• Improve security: One modification insurers do ‘approve' of is increasing the security of your car - such as by adding an alarm, immobiliser or tracking device.
• Increase your excess: An excess is an amount you pay towards a claim - most car insurance policies have a compulsory excess which you can add to with a ‘voluntary excess' - an amount you agree, from the outset, to pay towards a potential claim. Increasing your excess will lower premiums but don't go overboard - keep it at a level you can comfortably afford.
• No-claims discounts: Most insurers offer no-claims discounts which could reduce premiums by as much as 60 per cent after five years. They are a reward for driving safely and avoiding unnecessary claims.
• Park safely: Keep your modified car in a garage overnight and away from the prying eyes of thieves.
• Pay annually: If you have can afford to, then pay your car insurance premiums upfront to avoid interest charges.
• Vehicle use: Think about how you plan to use the vehicle - for example if you'll only use your car to run errands then make sure you're not paying for insurance for commuting or business use.

*All quotes correct as of December 16, 2009

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