Modifying Your Car? Things To Consider Including Insurance

06 Mar Modifying Your Car? Things To Consider Including Insurance

If you’re considering modifying your car in New Zealand, there are a few things you’ll need to think about first. As well as ensuring that any changes you make don’t put you or others at risk on the roads, it’s important you invest in making modifications correctly within the law, paying particular attention to those modifications that could make your car uninsurable. Here are 4 things worth considering if you’re planning to modify your car.

1. How safe is it?

Car modifications are any changes that make your car look, sound or drive differently from the manufacturer’s original specifications and can include:

• Cosmetic changes that alter the appearance of the car, such as a custom paint job, banners and decals, window tinting, spoilers, or a sunroof
• Functional enhancements that improve driver experience, such as wheelchair lifts, hand controls, custom seats, or steering wheel adjustments
• Performance enhancements that improve power and handling, such as new tyres and rims, lifted or lowered suspension, larger transmission, modified exhausts, or engine tuning

Any modifications made to your car must not put you or others at higher risk when you’re on the road. Well-fitted modifications may improve your car’s handling and performance, but your car’s safety could be compromised by poor installation, fitting parts that are inappropriate for your car, or by using poor quality parts.

Before going ahead with a car modification, carefully assess the risk and engage the services of an expert, someone who is experienced at completing similar modifications.

2. Is it legal?

All modified cars in New Zealand must meet Warrant of Fitness requirements and, depending on the level of modification, may also require Low Volume Vehicle (LVV) certification. Car modifications that may need to be checked by an LVV certifier include:

• Modified suspensions that alter the handling capabilities of your car, if the modification exceeds a specified threshold
• Engine conversions or modifications to enhance the performance potential of your car that could impact the braking system capability
• Racing seats fitted to provide better support should be checked for attachment and position in relation to safety belts
• Steering modifications

Check the technical standards information on the Low Volume Vehicle Technical Association’s (LVVTA) website to find out what’s required to ensure your car is safely and legally modified. Without LVV certification, you could be putting your own and other road users at risk.

3. How much will it cost?

Modifying your car may be seen as an alternative to buying a new car, allowing you to personalise it to your specific requirements. However, it’s not unusual for the costs to run into thousands of dollars, particularly when it comes to custom car modifications – things like paintwork, body work, or performance enhancements. Trying to cut costs for the sake of your budget can have negative consequences. Not only could fitting cheap parts reduce the lifespan of your car, it could also compromise your own and others’ safety on the roads. If you need some extra money to pay for the cost associated with car modification, our Personal Lending Team at Max Loans can assist with a personal loan to help customise your car just the way you want it. Give us a call on 0800 ASK MAX (0800 275 629) to discuss your needs directly or apply online for a loan.

4. Are insurance and warranties impacted?

Most car insurance providers prefer to cover cars that are factory-tested for safety and accident prevention. When a car is modified, its safety features may be compromised, potentially exposing the insurance provider to a higher risk of claims. While some car insurers will allow certain modifications and cover the car for damage, other modifications could drastically impact the insurance policy terms or make the car uninsurable. Additionally, any warranties may be forfeited when modifications are made.

If you are planning to modify your car, check what the impact will be on your car insurance and any warranty you hold to ensure you’re covered should things go wrong.

Get car insurance advice

Consult with a Max Insurances Adviser to find out how your car modifications might impact car insurance cover. As experts in NZ insurance, our advisers will work closely with you to help you find a car insurance provider that understands how important modifying your car is to you, and help you compare insurance policies to ensure you’re getting the best car insurance available.

Find this article helpful? Don’t forget to like it or share it on Facebook.