A guide to car insurance for modified MINIs

MINI owners are renowned for the pride they take in their vehicles and many like to modify their cars to make them look as good as possible. However, what affect will this have on their car insurance?

Will modifying your MINI push your car insurance premiums up?

Car insurance premiums are influenced by a number of factors including your driving history; your address; your annual mileage; your personal circumstances; and the vehicle you drive. As a general rule, older vehicles with smaller engines earn cheaper premiums because they cost less to repair/replace and are usually driven at lower speeds.

Modifications can push car insurance premiums up because modifying a car will usually add to its value. If an insurer is to repair a vehicle to its previous standard following an accident then it will usually cost more to replace modified parts than it would a standard specification. Indeed some modifications can also enhance the performance capabilities of a vehicle, which can push premiums up further.

To analyse the effect that modifications can have on a MINI owner we compared quotes for a 27-year-old male driver from Leeds with a 2001 MINI Cooper with a 1598cc engine, five years’ no-claims bonus and a £250 voluntary excess. By using a comparison website, this driver was able to pick up a quote for as little as £396.17 a year without modifying his vehicle.

We then compared quotes for the same driver with the same vehicle – but this time with the addition of non-standard alloy wheels. This modification alone pushed his annual premiums up by more than £30 to £432.61 a year. Without non-standard alloy wheels but with a non-standard paint job and side stripes, his cheapest quote increased by more than £100 annually to £505.56. Meanwhile, if the same customer owned a standard MINI Cooper but with the sole addition of a turbo charged engine his cheapest premium would be £610.43 – an increase of more than £200 compared to the original quote.

How can you get suitable car insurance for your modified MINI?

If you decide to modify your MINI then it becomes increasingly important to shop around and ensure you’re getting value for money. Comparison websites are a great place to start as they can compare deals from up to 120 insurance companies and often include specialised insurers that offer deals to modified car drivers.

Indeed modified car insurance specialists are well worth considering even if their deals are more expensive than those from conventional insurers. This is because they often offer unique policy features that may not be available elsewhere such as:

- Agreed valuations: Typically if a car is written off or stolen it is subject to a market valuation. However, with modified cars values can be difficult to determine so a market valuation could leave you short-changed. It’s sensible therefore to look for a guaranteed agreed valuation so you know you will receive a fixed payout in the event that your MINI is written off.

- Laid-up cover: If your MINI is a project then consider laid-up cover which will protect it against mishaps and theft while it is off the road.

- Hire cover: Some MINI owners may wish to rent their vehicle for special events – if that’s you then ensure this is covered under the terms of your policy.

- Rally/track race cover: Anyone planning to enter their MINI into a rally, track race or other special event should ensure this is covered by their car insurance.

Furthermore, many modified car insurance specialists offer discounts if you take an advanced driving course, agree to a mileage limit or join an owners’ or manufacturers’ club. While these discounts can offer substantial savings you should still compare these policies alongside those from conventional insurers to ensure you’re receiving value for money.

Tips to save money on car insurance

The key to saving money on car insurance is to lower your perceived ‘risk’ of making a claim – i.e. the less likely you are to make a substantial claim, the lower your premiums will usually be. Here are some tips:

- Agree to a mileage limit: The fewer miles you drive, the less likely it is that an accident will occur so consider agreeing to a mileage limit.

- Increase security: By fitting insurer-approved security devices such as Thatcham alarms, immobilisers and trackers you will limit the risk of theft and will normally earn a discount on your premiums.

- Increase your voluntary excess: The excess is your contribution towards a claim. By increasing the voluntary excess you will pay more if an accident occurs but it should help lower your premiums.

- Join an owners’ club: Some insurers believe that owners’ club members are more likely to take care of their vehicles and reward them with premium savings.

- Park in a garage: Store your MINI in a locked garage overnight where it is out of the sight of prying thieves.

- Pay annually: You can avoid interest charges by paying premiums upfront.

- Take an advanced driving course: Some insurers offer discounts if you improve your driving experience by undertaking a specialist course such as the Pass Plus or IAM.