Modified Car Insurance

Modified car insurance tends to be higher than regular auto insurance. If you don't report these modifications, you may not have adequate coverage on your car insurance policy.

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A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jan 15, 2021

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Here's what you should know...

  • A modified car can cause higher insurance premiums
  • Cars used for show won’t be as expensive as those used for street racing
  • The more expensive your cars modifications, the greater it will cost to insure
  • Lying to insurance providers about modifications will only hurt you in the long run, since you won’t be receiving adequate coverage

Does modifying a car affect insurance? If you have a dream of turning your car into a souped-up ride, think about modified car insurance before opening the toolbox. The number one factor an insurance company looks at is the risk factor of both you and your car.

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In an insurance company’s eyes, there are exactly two types of modified vehicles: show and street race. The type of car you want to insure will greatly impact your rates.

What are the differences between show cars and street cars?

Show Cars:

  • They tend to get low mileage
  • They are usually driven in sunny weather
  • They are stolen less
  • They are parked in a garage more
  • They are driven carefully

Street Race Cars:

  • They are driven fast and frequently
  • They are driven in any kind of weather
  • They are generally abused and in a lot of accidents
  • They are mainly driven by what’s been termed as ‘boy racers’
  • They are more likely to get stolen
  • They are mainly parked on the street

To an insurance company, a show car is a dream come true, and a street race car is a nightmare. A street race car will equal a considerably higher premium in order to cover all of the liabilities. This is one factor to consider when both modifying your car and searching for modified car insurance.

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What types of modifications affect your premium?

What modifications affect car insurance? There are several types of modifications that you can make to your car. Some modifications will affect your premium, some will not. They are:

Small Modifications:

  • Any minor adjustment, such as alloy wheels
  • These cause no major increase in your premium
  • They do increase the value of your car and the likelihood of it getting stolen

Major/Engine Modifications:

  • Pose a higher risk of theft and accidents
  • Will increase your premium
  • You may be quoted a higher excess as well to cover all of the liabilities

Other modifications:

  • Includes things such as exhaust system modifications
  • Normally considered on a case-by-case basis
  • You may be able to save yourself a little bit of money on your premium by taking and installing proper security measures. Installing an alarm system is recommended.

What are the dos and don’ts of applying for modified car insurance?


  • Disclose any and all modifications. This includes even the most minor modifications.
  • If you have an insurance company already, talk to your representative before modifying your car.


  • Do not hide anything, even if you make the modifications after you get the insurance policy. If you do, and you get into an accident, the assessor can, and most likely will, cancel your policy.

How can you find the best insurance for your modified car?

The best thing you can do is shop around. The third-party rate quote tool offered on this page is ideal. Remember to specify exactly what modifications have been made to your car. If you haven’t made the modifications yet, talk to your current car insurance representative to find out the effects of modifications to your premium. If they can’t offer you a good deal, then it’s time to shop around.

However, it is important that you remember that your car isn’t the only item that insurance companies are looking at. They are also looking at you as a driver. Some factors they will consider are your age and gender. This is especially true if you’re a young, male driver driving a souped-up car.

Though it may be through no fault of your own, you are going to automatically be put in the high-risk driver category, which results in a higher premium or excess.

Everything in car insurance is based on image. There are ways you can improve your image and impress the insurance companies, which in turn can lead to a lower premium. The first thing to do is make sure that you are an extremely conscientious driver. This means a couple of things:

  • No fooling around behind the wheel
  • Definitely no DUI
  • Don’t speed in residential areas
  • Respect the newfound power your car has gained and know how to control it
  • Many recommend taking an advanced driving course, something along the lines of what stunt drivers do. Taking a class and using the tips mentioned above will portray you as a responsible driver, and not an insurance nightmare.

Now you have all of the basic information on what to look for if you have or are planning to have a modified car. Now you are ready to find the perfect modified car insurance company. Remember these tips when conducting your research:
If you haven’t modified your car yet, talk to your current representative. This might save you a lot of hassle.

No need to wait! Enter your zip code and start receiving car insurance quotes today!

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