Media post: Classic Car Mods That Can Affect Your Car Insurance Coverage

You might have spent years restoring your classic car, and the next natural step is to “make it yours” with custom exhausts, alloys, performance tweaks or a new paint job. But every time you change the way your car looks, drives or is valued, you may also be changing how your car insurance works – and not always in your favour.

Many owners assume that modifications are “just cosmetic” and don’t tell their insurer. That can backfire later as higher premiums, reduced payouts, or even claim disputes if the changes were never declared. This article walks you through the classic car mods that typically matter to insurers, how different types of car insurance respond to these changes, and what you can do to protect both your car and your coverage.

Classic Car Mods That Can Change Your Insurance Scenario

Here are key classic mods you should know that affect your insurance scenario:

– Engine and performance tuning: Turbo or supercharger installs, carb upgrades, ECU remaps, free-flow exhausts, and intake kits can increase power. More power often means a different risk profile. That can lead to adjusted premiums or special terms. Always disclose these changes and keep records of parts and installation.

– Suspension, wheels, and braking: Lowered springs, coilovers, wider tyres, big-brake kits, and steering changes can improve handling, but they also change how the car behaves. Insurers may ask whether parts meet road-use rules and whether the fitment is certified. Keep bills and alignment reports handy.

– Bodywork and structural alterations: Body kits, spoilers, sunroof cuts, roof chops, or any welding on the chassis count as significant alterations. If approvals are required by your local authority, secure them first. Share photos and paperwork with your insurer so your comprehensive insurance reflects the actual build.

– Paint, interiors, and accessories: Custom paint, leather retrims, period-correct gauges, and high-end audio lift the car’s appeal and its theft exposure. These items usually need to be declared so they can be considered in your insured value. Ask how accessories are covered under your policy wording.

– Fuel conversions and safety gear: CNG or LPG kits should be approved and endorsed on the registration. Safety upgrades like roll cages, harnesses, better lights, and fire suppression can be positive, but they still need disclosure. The goal is simple. Avoid surprises during claims.

How Your Type of Car Insurance Influences the Impact of Mods

The same modification can have very different implications depending on whether your policy is third-party car insurance or comprehensive insurance.

Third-party insurance: minimum legal protection

In India, every car on the road must have at least third-party insurance, which primarily covers legal liabilities if your car causes injury, death or property damage to others.

For classic car owners, this type of cover does not usually protect your own vehicle from damage, theft or losses due to modifications. Whether your car has a stock engine or a heavily tuned one, a third-party car insurance policy will generally focus on third-party liabilities only, as per policy wording and regulations.

That said, failing to declare major modifications can still be a concern. If a serious accident is linked to an illegal or undisclosed modification, it may complicate claim handling or liability assessment, subject to the insurer’s terms and applicable law.

Comprehensive insurance: wider protection for a modified classic

Many insurers in India offer comprehensive insurance that combines third-party liability with “own damage” cover for your car. Such policies typically protect against events like accidents, theft, fire and unavoidable natural calamities, and may allow you to add riders (add-ons) for extra protection.

For a classic car, this is where modifications become very relevant:

– If the performance or value of the car has gone up, the risk to the insurer changes. Premiums may adjust, and the insurer may set specific conditions or limits around certain parts or accessories.

– Undeclared high-value modifications can lead to under-insurance, where the claim payout does not reflect the actual cost of your restored or upgraded classic.

– Some insurers also offer standalone own-damage covers, which focus specifically on damage to your car, in addition to the mandatory third-party cover.

The more your car differs from the original factory specification, the more critical it becomes to check how your comprehensive insurance treats those changes.

Final thoughts

A classic car is more than transport. It is a project, a story, and often a long list of upgrades. The right move is to let your insurer know what has changed, choose the policy type that matches how you use the vehicle, and keep your documentation tidy. When you handle disclosure and valuation well, car insurance becomes a safety net that respects your build and the time you put into it, subject to policy terms and conditions. That way, you enjoy every drive, while your cover keeps pace with your evolving classic.