Insurance expert Mauro Convertini points out how post-manufacturer vehicle modifications can increase
risk and insurance premiums. He explains, “certain
modifications can put motorists at a greater risk of having a
collision, such as a lowered or raised suspension, or increasing the
size of your engine. Your vehicle could become untrustworthy on the
road and impact your safety as well as your access to coverage.”
Even modifications you would expect to better the insurance risk of your vehicle, like an improved brake system, may still increase the cost of insurance for the following reasons:
• The modifications might increase the value of the vehicle and then the insurer has to pay out more in the event of a claim.
• Modified vehicles often are more attractive to thieves increasing the risk of theft.
• Vehicles with performance modifications generally mean that the performance of the vehicle is improved which can lead to more severe accidents.
Remember an insurer could refuse to pay a claim and even leave you uninsured if you have not disclosed modifications to your vehicle. So before you invest time and money on a project that could raise your premium, call your broker or insurance company and verify that your insurance will remain valid.
Excerpted from metronews.ca.
Even modifications you would expect to better the insurance risk of your vehicle, like an improved brake system, may still increase the cost of insurance for the following reasons:
• The modifications might increase the value of the vehicle and then the insurer has to pay out more in the event of a claim.
• Modified vehicles often are more attractive to thieves increasing the risk of theft.
• Vehicles with performance modifications generally mean that the performance of the vehicle is improved which can lead to more severe accidents.
Remember an insurer could refuse to pay a claim and even leave you uninsured if you have not disclosed modifications to your vehicle. So before you invest time and money on a project that could raise your premium, call your broker or insurance company and verify that your insurance will remain valid.
Excerpted from metronews.ca.
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