Modify your car insurance before your car

Modify your car insurance before your car

Thinking of splashing out on a new set of alloy wheels or window tint for your car? You may be unknowingly jacking up the price of your car insurance premium or even voiding an existing policy by doing so.

Insurance providers are very specific about the modifications they cover to avoid any confusion or misunderstanding. You’ll need to contact your provider with the details and value of any new accessory so they can either add it to your policy or discuss your options. Remember to keep a record of the purchase as proof of value too and to disclose all non-standard modifications made to your car to make sure you’re fully covered in the event of a claim.

Making even a minor modification can dramatically alter the cost of the premium you will pay on your insurance, depending on your provider, so motorists should consider whether the modification is really worth the extra insurance expenses.

Declare or beware

If a planned modification is set to increase your premium, then you may be tempted to keep tight-lipped when it comes to notifying your provider about any changes to your car. But by doing so, you could be doing yourself a huge disfavour. That’s because even the most minor alteration, such as fitting an aftermarket stereo or navigation system, must be declared when taking out a policy or else insurers may reject any future claims.

You’ll also need to inform your provider of any changes to your personal circumstances as well as modifications to your vehicle – failure to notify your provider of information such as a change of postcode or change in job could result in your policy being invalidated, for instance.

Been told ‘no’?

Not all car insurance providers will accept all modifications – some may balk at your decision to add a body kit to your car, for instance.

That’s why car insurance companies exist such as Just Car Insurance, specialists in cover for young people and modified cars, or Shannon’s, which specialises in cover for special or classic cars.

So it’s vital that motorists do their research and shop around to find the best value policy to suit their circumstances and vehicle preferences. Compare car insurance providers and policies online at RateCity to make finding the best option for your car as simple as a few clicks.

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Learn more about car insurance

Does insurance cover a stolen car if keys were in the car?

A car insurance policy that covers the theft of your car, such as third party fire and theft insurance, usually covers a stolen car, even if the keys were in the car’s ignition.

However, your insurer may deny the claim if you live in an area where there have been several car robberies reported recently. They will see you leaving the keys in the car as a case of negligence. In such cases, your insurance provider may even expect you to have installed anti-theft security measures in your car. 

You may need to confirm whether or not you left your keys in your car, and if they had been stolen or misplaced, before filing your car insurance claim. The loss or theft of your car keys may be covered by a comprehensive car insurance policy, but usually as an optional item.

If you can confirm that your car keys were stolen, mention this in your claim as this will help establish that your car was not stolen as a result of your negligence.

Can you insure your car for 6 months?

Most Australian insurers won’t offer you a 6-month car insurance policy, so you may need to buy a policy that covers your car for damages and cancel it after six months. You will need to purchase comprehensive car insurance to protect your car from accidental damage, theft, vandalism, or natural disasters.. 

Consider checking whether your 6-month comprehensive car insurance will cost more if you pay monthly or six-monthly premiums instead of a one-time annual premium. Another question to ask the insurer is whether you’ll need to pay administration or cancellation fees when you cancel the policy.

Alternatively, you can look for a suitable ‘pay as you drive’ car insurance policy, which usually offers you the coverage of a comprehensive car insurance policy but only requires you to pay for the distance driven. Such a policy may not be the ideal 6-month car insurance plan as it is based on how much you drive rather than for how long. If you need to drive a lot, you may end up paying more than you’d pay for regular car insurance. 

Can I drive a new car without insurance?

It is illegal to drive a car in Australia without insurance. Most states require that you get your insurance in place before you drive the car off the dealership’s plot. So, the answer to whether driving a new car without insurance is no, it is not allowed.

The only time you can possibly legally drive an uninsured car is when you have to get the vehicle registered. You should drive straight to an inspection station or your state's vehicle registry. You must also make sure that you take the most direct or convenient route possible.

It is important to note that your compulsory third party insurance (CTP or green slip) isn’t valid until your car is registered.

Driving an unregistered or uninsured vehicle can have severe legal repercussions. If you are involved in an accident, and are driving an unregistered and uninsured vehicle, you will be personally liable to pay compensation to anyone hurt, as well as for damages. If you are caught driving a vehicle without insurance, you may be fined or even have your vehicle seized.