Motor Insurance

Vehicle Modification

Insurers might not insure vehicles with modifications to the vehicle, notwithstanding whether the modifications passed LTA's inspection standards. Motorists must declare all modifications, irrespective of acceptance by LTA, for underwriting.

  • You must inform your insurer if you make any modifications to your car, even if they have passed LTA’s inspection standards. Non-disclosure may result in your claims being repudiated.
  • Many insurers consider modifications made to a car as material information in deciding what premium to charge for a policy; some insurers also do not wish to insure modified cars.
  • We recommend in all instances where your car is modified that you advise your insurer or prospective insurer of what changes have been done to your car.

What is considered "modification?" Does it affect both big and small changes to my vehicle? For example, I want to switch my wheel to sports rims. Does this apply? What about changing the in-vehicle radio to a multi-DVD entertainment system? Does this apply?

Modification refers to changes made to a car which are directly related to how it operates as a car. This includes changes to engine performance, drive train, air intake systems, exhaust systems, transmission systems, or any changes to the handling characteristics of the car including suspension systems, strut towerbars, or bracing as well as any changes made to the control unit of such parts. This list is not exhaustive.

Routine maintenance where like-for-like parts are used, that is in accordance with the manufacturer's standard specifications, will not be considered as modification.

Accessories are parts of your car which are not directly related to how your car operates and will not impact your insurance coverage. This include upholstery, audio equipment, multi media equipment, communication equipment, personal computers, satellite navigation and radar detection systems, provided they are permanently fitted to the car and have no independent power source.

Changes made to rims/tyres and body kits are not considered a modification when they are within the manufacturer's defined and acceptable specifications. However please note that in case of any damage during an accident, insurers will only replace or repair with suitable part(s) in accordance with the manufacturer's standard specification.

If you require further clarification, please contact your insurer.

How do modifications impact my annual motor insurance premiums? Will I have to pay more for my motor insurance because of these modifications?

Do ask your insurer and shop around. Some insurers charge additional premiums and some do not. We recommend that in all instances where your car is modified that you advise your insurer or prospective insurer of what changes have been done to your car and ask how your premiums and coverage, may be affected.

Non-disclosure of vehicle modifications may result in repudiation of claims by your insurer.