Modified car insurance in NZ: what to tell your insurer

Which modifications do you need to declare?

Insurers ask the question differently, but the safe reading is anything that changes how the car performs, handles, looks or what it is worth. If you are unsure whether a change counts, declare it and let the insurer decide. Their answer may be no change, a higher premium, an extra excess or a decline.

• Engine tuning, turbo or supercharger changes, engine swaps
• Exhaust and intake changes
• Lowered or raised suspension, coilovers, lift kits
• Non-standard wheels and tyres
• Body kits, spoilers, wraps and paint changes
• Audio and electronics, especially expensive ones
• Performance brakes, seats, harnesses and roll cages

What happens if you don't declare a mod?

If the insurer finds an undeclared modification at claim time, it may decline the claim, pay less, or cancel the policy, depending on what it would have done had it known. It is the same duty to answer questions truthfully that applies to every policy.

If a claim is declined and you disagree, Consumer Protection's advice applies:

“If you have had a claim refused and disagree with your insurer's decision, first take it up with their complaints team. If you can't sort it out directly, ask your insurer which dispute resolution service they belong to and get advice from them.”

— Consumer Protection (Ministry of Business, Innovation and Employment), Car insurance

Do you need LVV certification?

Some modifications to a light vehicle must be inspected and certified by a Low Volume Vehicle certifier before the vehicle can get a warrant of fitness. The Low Volume Vehicle Technical Association publishes the standards and thresholds. A WoF inspector can tell you if a car needs certification.

LVV certification shows a modification meets safety standards; it is not insurance approval. An insurer can still price or decline a certified modification. Keep the LVV certificate and plate details, because an insurer may ask for them.

Agreed value for a modified car

Money spent on modifications does not always show up in a car's market value. If that matters, ask whether the insurer offers agreed value and whether the modifications are included in it.