Can Vehicle Modifications Impact Your Insurance?

Deux amis dans un garage modifient une auto de collection en installant une porte.

Have you ever thought about upgrading your vehicle? For many car enthusiasts, it’s a great way to have their vehicle customized to suit their lifestyle. But have you considered how these car modifications can impact your insurance? The Good Hands Advice team has put together this guide to help give you a better understanding.

What are Vehicle Modifications?

Vehicle modifications are any changes made to your car that weren’t present when originally purchased. Vehicles are typically modified for aesthetics and/or for performance.

Can Vehicle Modifications Impact Your Car Insurance?

Your car insurance premiums are calculated based off of several different factors. For example, beyond your car’s make and model, year, and safety rating your driving history and insurance record all contribute to your insurance premiums. Therefore any changes to these factors can mean changes to your vehicle’s insurance coverage.

What Type of Car Modification Can Impact Your Car Insurance?

If we look at car modifications in two categories – aesthetics and performance – we can see how these upgrades may negatively impact your car insurance.


  • Window Tinting – While it may not directly impact your insurance premiums, any design modifications may increase the value of your car – therefore it’s important to disclose any changes made to your car.
  • Vehicle Wraps – Just like with window tinting, this costly investment may increase its overall value – and in turn may increase your insurance premiums.
  • Tire Sizes – Some people may make upgrades to their tires’ size depending on the type of vehicle. So long as these changes don’t impact your car’s safety rating, then your insurance premiums are unlikely to be impacted.
  • Roof Rack – You may be surprised to learn that installing a bike rack may impact your insurance. That’s because your vehicle will have additional weight added to it that may be considered an added risk to your vehicle.
  • Spoilers, skirt kits, lighting, and other modifications –

While these modified cars may vary from insurance companies, your provider may be able to share with you a list of approved modifications to your vehicle that will not impact your insurance rates.


If any changes to your car’s performance have the potential to either increase the value of your or impact its overall safety, this may lead to an increase in premium or impact eligibility. For example

  • Engine Modifications – Such as any increases to your car’s horsepower.
  • Exhaust Systems – Any changes to your exhaust system.
  • Modifications to the Braking System – Changes to your braking system.
  • Upgrades to the Vehicle’s Transmission – Updating the software that controls your vehicle’s transmission, or installing an upgraded torque converter.

These factors (among others) are what insurance companies use to evaluate your car insurance premiums. However, aesthetic mods such as decals, stickers etc. have no impact on your insurance.

Examples of How Vehicle Modifications Can Positively Impact Your Car Insurance

As mentioned earlier, any changes that impact the overall safety or security of your car may contribute to an increase in car insurance premiums. So, any upgrades to your car that adds to its overall safety may lead to discounts lowering your premiums (e.g., installing anti-theft devices)

What Happens if You Don’t Inform Your Insurance Provider of Vehicle Modifications

When getting a car insurance quote your agent may ask if your car has any modifications. It’s important to disclose that information to ensure that you receive the proper coverage for your vehicle. You should also notify your insurance agent whenever there are changes to your vehicle, whether they are lifestyle related – such as changes to your driving habits – or physical.

That’s because your insurance offers coverage to you and your car based off your driving habits and the car’s value at the time of signing your policy.

If you include modifications that may increase the value of your car, you may find that your current coverage may not be enough to cover the cost of damage to your vehicle. Also, failure to disclose any modifications may lead to your claim being denied or your policy being cancelled.

Alternatively, some changes may be illegal depending on which province you live in. Therefore it’s important that you conduct your own research prior to starting any upgrades.

To learn more, connect with your insurance provider to help you determine which upgrades are appropriate for your vehicle and its existing coverage.

Disclaimer: This information and the websites referenced are provided for your convenience only and should not be construed as providing legal or insurance advice. Allstate does not control or guarantee the accuracy of any content on any third-party site.  Allstate is not responsible for the privacy practices of any third-party site.