The Impact Of Modifying Your Car Exhaust: Navigating Insurance Complications

Changing your exhaust can void your insurance, but it depends on the type of exhaust you install and your insurance provider. If you install a chrome exhaust system, your insurance provider will likely cover you. However, deafening exhaust systems are typically not covered by most insurers.

It is important to notify your insurance provider of any modifications to your vehicle, as failing to do so could lead to the cancellation or voidance of your policy and rejection of any claims you make.

Illegal modifications may void your insurance policy

Illegal modifications are alterations to your vehicle that do not meet the roadworthiness requirements set by your state or territory. These modifications may include changes to your vehicle's engine, chassis, tyres, suspension, or exhaust system. Failing to comply with these requirements can result in significant fines, deregistration, or impoundment of your vehicle.

It is crucial to notify your insurance provider of any modifications, regardless of their legality. Not disclosing modifications can lead to the cancellation or voidance of your policy and the rejection of any claims. Even minor modifications, such as tinted windows or alloy wheels, should be declared to your insurer.

Some common illegal modifications that can void your insurance policy include:

• Loud exhaust systems
• Non-compliant modifications to the engine, chassis, tyres, or suspension
• Tinted windows that block more than 70% of light
• Certain light modifications, such as additional red lights or flashing under-car lights
• Removing the catalytic converter or injecting nitrous oxide
• Stretched tyres

It is important to emphasize that the legality of modifications can vary depending on your location. Always consult your relevant state or territory transport department to ensure your modifications comply with the applicable laws and regulations.

In summary, illegal modifications can have severe consequences, including voiding your insurance policy. To avoid this, ensure you understand the legal requirements, disclose all modifications to your insurer, and only proceed with modifications that are approved by the relevant authorities.

Notify your insurer of any modifications

It is crucial to notify your insurer of any modifications made to your car. Failing to do so could lead to the cancellation or voidance of your policy and the rejection of any claims you make. Some insurers may even void your warranty.

Even if your modifications are legal and your insurer covers them, they may still set a requirement that you inform them before modifying your car. They may limit what car modifications are covered under your policy, even if they are legally permitted.

If you make illegal car modifications, your policy may be voided entirely. If your insurer is made aware of illegal modifications, your policy may be cancelled. You may also be denied cover if you apply for car insurance for a vehicle that's illegally modified.

It is worth noting that certain modifications, such as installing an alarm system or adding safety features, can lower your insurance premium by reducing the risk of theft or accidents. However, changes that impact performance and aesthetics usually carry a higher accident risk and, therefore, a higher premium. Other changes that increase the value of your car, like stereo systems and custom parts, also increase its appeal to thieves, resulting in a higher premium.

Modifications that increase performance and aesthetics may increase your premium

When it comes to car insurance, modifications that increase performance and aesthetics may increase your premium. This is because these types of changes can increase the risk of an accident and make your car more attractive to thieves, resulting in a higher insurance premium. Even minor modifications, such as tinted windows or a new exhaust system, can have an impact on your premium. It is important to note that not all modifications will affect your insurance, but it is always best to check with your insurer before making any changes to your vehicle.

Some common modifications that may increase your premium include:

• Engine modifications, such as adding a turbocharger or supercharger
• Mechanical modifications, such as upgrading the exhaust system, brakes, or transmission
• Bodywork modifications, such as adding spoilers, side skirts, or custom paint jobs
• Interior modifications, such as upgrading the seats or steering wheel
• Suspension modifications, such as lowering the car or adding a sway bar

It is worth noting that there are also modifications that may lower your premium, such as adding high-performance brakes or upgrading the suspension on a highly modified car. Additionally, functional modifications, such as adding a car alarm or dashcam, may also result in a lower premium as they are seen as added safety features.

When making any modifications to your vehicle, it is crucial to ensure that they are legal and approved by the relevant authorities. Failing to do so may result in fines, the cancellation of your insurance policy, or even your car being impounded. It is always best to consult with a professional and inform your insurer of any changes to avoid any issues with your insurance coverage.

Specialist insurers may cover modifications that mainstream insurers won't

Specialist insurers will often cover modifications that mainstream insurers won't. For example, specialist insurers will usually provide insurance coverage for enhancements or alterations to suspension, engine or chassis (provided such changes are legally compliant).

However, bear in mind that younger drivers with modified vehicles will typically struggle to secure cover with a specialist insurer, and premiums in general with specialist insurers aren't extremely competitive. The idea is that they will provide you with insurance where other insurers won't, not that they will provide you with cheap insurance where other insurers won't provide you with insurance at all.

While the types of modifications that carry higher premiums will vary among specialist insurers, modifications that increase the power of your vehicle will usually attract a relative increase in premium. For example, if the modification to your car increases its power by 15%, then your insurance premium will also increase by 15%.

Specialist insurers usually cover unique modifications by adding substantially to the excess you pay. They also tend to charge more for more powerful vehicles.

Specialists are particularly good at taking care of modified classic cars. They are better able to negotiate a more accurate agreed value for the car rather than simply resorting to market value, while understanding the needs of the owner.

For example, they may offer flexible lay-up periods for classic cars that don't see much use. They are also likely to offer you the choice of your own mechanic and the option to retain valuable or rare parts salvaged from your car in the event of an accident. Mainstream insurers can rarely offer such flexibility for modified classic cars.

Modifications that improve safety features may lower your premium

Modifications that improve safety features may lower your insurance premium. However, this is not always the case. The impact of modifications on insurance premiums depends on several factors, including the specific modification, the insurer, and the local laws and regulations.

Some modifications that may improve safety and lower insurance premiums include:

• High-performance brakes
• Sway bars
• Water cooling systems for brakes
• Dashcams
• Car alarms
• Tow bars
• Anti-theft devices
• Rearview cameras
• Parking sensors
• GPS tracking devices
• Adaptive cruise control
• Backup cameras
• Lane departure warning systems
• Blind-spot detection systems
• Forward automatic braking systems

However, it is important to note that not all insurers cover all modifications, and some modifications may be considered illegal or unsafe, leading to higher premiums or even the cancellation of the insurance policy. Therefore, it is crucial to consult with your insurer and understand the local laws and regulations before making any modifications to your vehicle.

Frequently asked questions