Why is it important to disclose vehicle modifications to your insurer?

Disclosing vehicle modifications to your insurer is crucial because it allows them to assess the risk accurately. When modifications are made to a vehicle—such as performance enhancements, alterations to the suspension, or changes to safety equipment—they can affect both the vehicle’s safety and its value. Insurers rely on complete and accurate information to evaluate the potential costs they may incur in the event of a claim. Without this information, they might underestimate the risk associated with insuring the vehicle, which could lead to issues with coverage or claims in the future.

Additionally, understanding modifications enables insurers to determine appropriate premiums based on the altered risk profile of the vehicle. For instance, certain modifications could increase the likelihood of theft or accidents, leading to changes in how the vehicle is assessed for coverage. Providing accurate details ensures that both the insured and the insurer have a clear understanding of the coverage needed for the vehicle’s unique condition.