Insurance for Modified Cars: All You Need to Know

A car isn't just a mode of transportation — it's also a tool for expressing yourself. Drivers can express themselves by purchasing cars of various colours, makes and styles.

But, if you want to take things a step further, the best way to show off your personal style on the road is by modding your vehicle. There are several different types of vehicle modifications that Canadian drivers can choose from. 

If you're planning on making any changes to your vehicle in the near future, you should consult with your car insurance provider about the types of car insurance you may want or need. Insuring modified cars is a relatively simple process, especially if you've done your fair share of research.

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That being said, drivers should be aware of a few factors and nuances before signing on the dotted line. Understanding these crucial factors allows you to make an informed decision and help prevent issues from arising down the road (car insurance pun, we couldn’t help ourselves).

Continue reading to learn the fundamentals of insuring a modified vehicle in Canada.

What is a car modification?

In short, a car modification is a physical change that is made to a motorized vehicle. Both mechanical and aesthetic alterations qualify as vehicle modifications.

Some of the most common examples of the car modifications that you'll see on Canadian roads include the following:

• New tires
• Window tints
• Alterations to the engine
• Seat or other interior upgrades
• Transmissions customization
• Alteration or addition of lights

Don't hesitate to contact your car insurance provider for a complete list of vehicle modifications.

Are all car modifications legal in Canada?

No, there are several types of car modifications that are illegal in Canada. Getting caught with an illegal modification generally results in a ticket and/or fees.

However, drivers should know that their location influences the legality of certain modifications.

For instance, vehicles in Ontario made before 2017 are allowed to have an OEM tint as long as it has 70% VLT and it doesn't extend 75 mm past the top of the windshield (cars made after 2017 cannot have an aftermarket tint). In contrast, the rest of Canada strictly prohibits tinting on vehicles (excluding the rear-side windows under select circumstances).

Be sure to do some research on the rules and regulations for car modifications in your province or territory.

Getting insurance for modified vehicles — does it affect your premiums?

This is a great question; however, the answer isn't as cut-and-dry as you may have thought.

Modifying your vehicle can influence its value and safety level. Your vehicle's value and safety level are vital pieces of information that your insurance provider needs to be aware of.

Value of your vehicle

Some modifications can drastically increase the value of your vehicle. For instance, replacing your stock seats with premium leather will increase your vehicle value.

Increasing the value of your vehicle means that your insurance provider has to pay more to cover potential damage. Your car insurance provider will most likely increase your premiums to make up for this increased financial risk.

Safety level of your vehicle

Some modifications, like a new engine or a set of tires, can have positive or negative side effects on your insurance premiums.

For instance, upgrading your engine may increase your ride's horsepower, but, in the eyes of your insurance provider, it makes you a larger risk. This is due to the notion that drivers with fast vehicles tend to drive at higher speeds and act recklessly. Your insurance provider is forced to increase your premiums to justify the financial risks related to covering your vehicle.

That said, not all modifications will increase your car insurance — some upgrades, such as installing winter tires, can actually help you save on car insurance.

With this in mind, you can see how modifying your vehicle can be a double-edged sword.

Why should you tell your car insurance provider about your modification?

Before making any permanent changes to your vehicle, you should reach out to your car insurance provider. Taking the time to chat about modified cars insurance with your provider can make the process significantly easier, faster and less stressful.

However, this isn't the sole reason you should contact your insurance provider before making alterations to your ride. First of all, not all car insurance providers offer modified vehicle coverage due to the risks related to the process. Double-check with your insurance provider to ensure that they will cover you after altering your vehicle.

If your current provider is open to covering your vehicle post-modification, they'll provide you with a quote. Getting a quote gives you a general idea of how much your premiums will change and prevent any surprises when it comes time to pay the bills.

Lastly, failing to notify your car insurance provider about a modification can land you in some seriously hot water. If you don't keep your car insurance provider in the loop, you may no longer qualify for coverage.

For instance, imagine that you got t-boned by another driver, which resulted in thousands of dollars worth of damage to your vehicle. In most cases, your insurance provider would cover the sum or a portion of the expenses related to the incident.

However, if you modified your car and didn't notify your provider, it could void your policy. In turn, you're left covering the expenses out of pocket.

Long story short — always notify your car insurance provider before modifying your vehicle. Taking the time to do this can be the difference between financial protection and a hefty repair bill with your name on it.

Do you need help finding the best insurance for modified cars in Canada?

If your current provider doesn't cover modified vehicles, or you're having a hard time finding quality quotes, you should reach out to a Surex insurance broker.

Our brokers work tirelessly to find the cheapest car insurance quotes for Canadian drivers. Not to mention, we only work with the most reputable insurance carriers in the country, which means that when you receive a quote, you're receiving the best of the best.

Click or call today to receive ten quotes in ten minutes or less!