#customcarcoverage

Car modifications can be a great way to personalize your ride or adapt your vehicle for performance, accessibility, or style. But if you’ve added aftermarket parts or made significant changes to your car, there’s one important question to ask: Do you need special insurance for your modified vehicle in Canada?

The answer is yes — in many cases, modifications affect your insurance coverage, rates, and eligibility. Here’s what you need to know before you customize your vehicle.

What Counts as a Vehicle Modification?

A vehicle modification is any change made to the car after it leaves the factory. Modifications may improve performance, enhance appearance, or support medical needs.

Common modifications include:

Performance upgrades (e.g., turbochargers, exhaust systems)

Cosmetic changes (e.g., custom paint, spoilers, rims)

Suspension lifts or lowering

Engine swaps or tuning chips

Handicap accessibility features (e.g., hand controls, wheelchair lifts)

Lighting modifications (e.g., LED or underglow kits)

Even small changes can affect your insurance — and failing to report them may lead to denied claims or cancelled policies.

Learn the Rules :

Driving a modified vehicle comes with responsibilities. Use licenseprep.ca to brush up on road safety, legal vehicle requirements, and local driving laws before hitting the road.

Why Modifications Matter to Insurers

Insurance companies assess risk when determining your premium. Modifications can:

Increase theft risk (e.g., flashy rims or high-end audio systems)

Affect roadworthiness or safety

Boost performance and make the vehicle more accident-prone

Change the vehicle’s value, which affects repair or replacement costs

That’s why it’s essential to declare all modifications when you apply for or renew your policy.

How to Insure a Modified Vehicle

Most major insurance companies in Canada allow you to insure modified vehicles, but you’ll likely need to:

Provide a detailed list of modifications

Submit receipts or photos

Get an appraisal for heavily modified or high-value vehicles

Agree to specific terms or exclusions

Your insurer will determine whether they can cover the modifications and whether your premium needs to be adjusted.

Are All Modifications Covered?

Not necessarily. Some modifications may be:

Covered under a standard policy (e.g., minor upgrades)

Covered with an endorsement/rider (an add-on to your policy)

Not covered at all if the mod violates safety or legal standards

Always ask your provider in writing which modifications are covered and how they’re valued.

Modifications for Accessibility

If your vehicle has been modified to accommodate a disability, most insurance providers do not penalize you for these changes. In fact, some provinces may offer rebates or tax credits for the installation of accessibility devices.

Still, you should inform your insurer and ensure those modifications are included in your coverage to protect your investment.

Legal Requirements for Modified Vehicles

Each province has laws regarding what types of vehicle modifications are legal on public roads. For example:

Window tinting is limited in many provinces

Underglow lighting may be banned in certain colors

Lifted trucks must meet height and bumper regulations

Engine swaps may require inspection and re-registration

Check your local transportation authority’s rules to avoid fines or a failed safety inspection.

What Happens if You Don’t Report a Modification?

Failing to disclose vehicle modifications could result in:

Claim denial after an accident

Voided policy due to misrepresentation

Increased premiums when discovered later

Legal issues if modifications are illegal or unsafe

Play it safe: always be honest with your insurer.

Final Thoughts

Whether you're upgrading your car for style, speed, or accessibility, don’t overlook the insurance side. Modifying your vehicle without notifying your insurer can cost you big in the long run — and possibly leave you unprotected when you need it most.

Want to stay on top of driving laws and licensing requirements in Canada? Visit licenseprep.ca to study road signs, rules, and vehicle requirements tailored to each province.