By law, if a car owner wants his or her car to be legal to drive, then that car must have a car insurance policy in force, which is a law that also extends to modified cars. This is true even if the owner drives the car or not, whether the car has a registration plate or not, and whether it runs or not. However, insuring a modified car is not the same as insuring a non-modified car, and there are strict rules and regulations the modified car owner must follow. While many modified car owners purchase full tort insurance policies from specialized insurance agents experienced with modified car insurance policies, getting any policy for the car has some downfalls.
The one downfall is having to disclose everything that has been done to the car. While most people would not have an issue with being honest, others, such as those whom have modified their cars with parts that are not street legal, might. As soon as they disclose the part as a modification, one of two things happens.
First, the chances of being able to get insurance is slim to none and even at that, it is possible that the insurance policy could hold a clause stating that the policy is void or will not cover certain damages should the car be driven on the street when those damages were caused. Second, insurers who will offer a policy for non-street legal cars charge much, much more for the coverage knowing that the likelihood of damages in any situation is much higher. In both these cases, it is better to seek a policy from a specialty insurer.
Simply stated, most car insurers offer policies and determine premiums based on three things, which include how expensive the car is, how large the motor is, and whether the car make and model is a common one or not. However, because of the modifications, insurers have no way to determine theses points, which in itself is a downfall. Because modified cars are one of a kind, in that the likelihood of another of the same make and model car having the same modifications is slim to none, there is no way for an insurer to compare a modified car with another car.
Nevertheless, the insurers who do offer modified car insurance typically charge much more for premiums because if the car is in an accident, or if someone steals or otherwise damages the car, a modified car is that much more expensive to fix or replace. This is especially true of the motor, since a modified car’s motor is typically much larger than that of a car without modifications.