This is a guest post by Jake Ashaye who doesn’t personally drive a modified car but he certainly remembers the days when he used to!

Today’s youth exhibit a greater sense of individualism than any generation before them.  Our “exterior manifestations” (or decoration, so to speak!) exhibits a unique sense of fashion that reflects our lifestyles.  Tattoos, piercings and hair dyes allow us to enhance our sense of distinction on our own bodies.  Heck, even our cell phones are adorned with skins and wall papers to suit our taste. Our generation has more options than ever before to express our personalities and young people are quick to take advantage of them.  And nothing gives us the freedom to express ourselves than the cars that we drive.

Unfortunately, there is also an important aspect to this that often goes unnoticed by youth.  Younger drivers are far more likely to trick their cars out in order to express their own zest for life.  While this may be great for self-expression, it can also lead to a financial disaster.  There are many ways that cars can be customized and nearly every one of them will lead to higher insurance rates.  Some modifications may even be illegal in some localities while being sold in another nearby.  It’s important for young people to take this into careful consideration before customizing or “modding” their vehicle.

Glow Kits, Spoilers, and Cops

Under glow kits are the perfect example.  They are considered by many to be one of the most interesting customized features among cars.  They give vehicles a futuristic look and even provide the illusion of the car floating.  However, damage caused by under glow kits can be significant.  They are also sometimes associated with more aggressive drivers; both of these aspects will lead to higher insurance rates, not to mention just ASKING for the cops to eye you like a hawk for any wrongdoing just so they can ticket you.

Adding a specialized spoiler to a vehicle can also raise a red flag among insurance providers.  Custom spoilers are popular among street racers, the most dangerous type of driver (as far as insurance companies are concerned).  They can also be expensive to repair, especially if installed improperly.  Due to so many do-it-yourself failures surrounding cars, insurance rates will rise quickly after making such a modification.

            Of course, souping up your car’s engine will lead to the most significant rate increases on insurance policies.  While the concerns surrounding the other modifications are based on speculation, there is no doubt among insurance providers that a souped up engine will lead to higher speeds and greater driver aggression.  It’s also seen as a virtual guarantee that the driver will engage in street racing.  Some insurance companies may not even provide a policy after such a modification let alone give you car insurance quotes.  Those that do are certain to charge a substantially higher rate.

There is a way around the rate increases, however.  A policy holder may simply choose not to report modifications to their insurance company.  By doing so, they can still maintain the required level of insurance without paying the heightened fees.  The disadvantage to this, however, is that in the event of an accident, if any attention is placed on the modifications (which is almost certain to happen as most insurance companies will inspect the vehicle after an accident), the entire policy will be voided.  This will leave the driver fully responsible for all damages and other costs related to the accident.

Modifications and your Warranty

Certain modifications can also void a car’s warranty.  Those that include significant changes to the vehicle’s structure (such as converting a regular sedan into a convertible) are almost certain to always relieve a car manufacturer of any warranty obligations.  This may sometimes even include repairs that are needed because of an original defect.  And it’s almost never limited to whether or not the modification can actually lead to any significant problems.

Ultimately, the best choice regarding a vehicle’s characteristics are to maintain its exterior factory settings.  But this isn’t as bad as it sounds.    Car manufacturers are fully aware of their customers’ individuality and work hard to provide plenty of different vehicles to meet these needs.  Some cars are built with specialized characteristics, while others are built for speed and special uses.  You can also know exactly how much an insurance policy will cost if it’s only based on the factory settings.  Besides, interior modifications are still widely allowed without any consequence.  If you still prefer to alter your vehicle, it’s a good idea to contact your insurance company and manufacturer so that you can be aware of any potential problems beforehand.

Youngandthrifty’s Note: I used to remember the days in high school (and possibly early college) when all my guy friends are into cars.  I have a friend who easily spent $10,000 modifying his car- he added a sound system to it, lowered it, added a spoiler to it etc. etc. In the end he sold his car for $4000.  Modifying the car decreases it’s value when you sell and that’s another huge drawback.