How do insurers set rates for modified cars and custom cars?
When setting a car insurance premium for a modified car, an insurer will also look at the base car you started from – diesels are favoured over petrol. A £500 car with a £1000 ICE install and £2000 worth of 20 inch alloy wheels is an obviously increases the risk of the car going ‘missing’ and most insurers would refuse this unless you agree that they can replace the nicked items with standard parts. When you drive a Group 20 car costing £30,000 and add £2000 of alloy wheels and a £1000 ICE install they are less likely to impose terms. And if the car already does 0-60 in 4 seconds and you modify it to go 0-60 in 3.7 seconds again there is little weight to the argument of an increased premium. Car insurers want to see enthusiasts that love cars and look after them rather than the boy racer who wants to impress his mates in the 7/11 car park. Getting car insurance cover first and then applying modifications later to the car often means the insurer will listen to you whereas they would ref
