What might occur if modifications to a vehicle are not reported to an insurer?

When modifications to a vehicle are not reported to an insurer, coverage may be voided after an accident because insurers expect policyholders to disclose any changes that can affect the risk associated with insuring a vehicle. Modifications, such as changes in the vehicle's performance or safety features, can alter the risk profile significantly. Failure to inform the insurer about these modifications can lead to the insurer considering the policy as misrepresented or even fraudulent.

In the event of an accident, the insurer may investigate the circumstances surrounding the claim. If they discover that significant modifications were made without prior notification, they may determine that the policyholder has breached the terms of the insurance contract. Consequently, the insurer may choose to deny coverage for the claim or even cancel the policy entirely, which emphasizes the importance of transparency in maintaining valid insurance coverage.

The other options either underestimate the insurer's role in assessing risk or inaccurately suggest benefits that would not occur. Therefore, it is essential for vehicle owners to communicate any modifications to ensure that their coverage reflects the true condition and risk associated with their vehicle.