Vehicle modifications—whether performance upgrades, lifted suspensions, custom wheels, or aesthetic changes—are popular across Canada. But mods can significantly impact your auto insurance, and failing to disclose them can put your coverage at risk.

Why Modifications Matter to Insurers

Insurers assess modifications because they can:

• Increase accident severity or repair costs
• Change how the vehicle performs or handles
• Raise theft risk due to aftermarket parts
• Affect compliance with provincial safety laws

Undisclosed mods may lead to reduced payouts or denied claims.

Common Modifications That Affect Coverage

• Engine tuning, turbo upgrades & exhaust changes
• Lift kits, lowered suspensions & oversized tires
• Custom paint, wraps, body kits & lighting
• Audio systems and electronic upgrades

Insurance Coverage to Consider

• Declared Value or Endorsements for aftermarket parts
• Comprehensive Coverage for theft and vandalism
• Collision Coverage reflecting higher repair costs
• Higher Liability Limits if performance is increased

Smart Risk Management

• Fully disclose all modifications to your insurer
• Keep receipts, photos, and install documentation
• Use licensed installers and approved parts
• Work with a broker familiar with modified vehicles

Final Thought

Modified vehicles aren’t uninsurable—but transparency is critical. The right coverage ensures your investment is protected on Canadian roads. 🇨🇦

Brokers can contact Total Risk Managers to discuss a risk.

This article is general information for insurance brokers. It is not advice, and it is not a quote or an offer of coverage. Policy wording decides what is covered. Coverage is arranged through a licensed insurance broker.