How Car Modifications Modify Your Car Insurance in Dubai, UAE?

How Can Car Modification in Dubai Impact Your Car Insurance Policy?

Car modification in Dubai is common, with louder exhausts, bigger tyres, bold body kits and performance tweaks everywhere. Many drivers ...read more

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What Counts as a Car Modification in Dubai?

A car modification in Dubai is any change made to your vehicle that differs from the original manufacturer’s specifications, even if it feels like a small or harmless upgrade. It can be cosmetic, mechanical, electrical or purely functional. Here are some real, everyday examples that Dubai drivers often overlook —

A new exhaust that gives your car a sharper sound.
Aftermarket wheels that look sportier than the stock ones.
A suspension lift on your 4x4 for desert drives.
Body kits or spoilers to enhance the exterior look.
A performance remap to make your SUV feel more powerful.
Custom paint, wraps or LED lights added for styling.

Even something as simple as replacing standard headlights with brighter aftermarket ones counts as a car modification in the UAE.

And here’s the part most drivers don’t realise—insurers often classify modified cars in the same high-risk category as sports cars. This means your car may still look perfect on the outside, but in the eyes of your insurer, it’s now a “non-standard” vehicle with a different risk profile.

Why UAE Insurers Evaluate Car Modifications So Carefully?

When you make a car modification in Dubai, your car no longer matches the original factory safety standards. And that instantly changes how insurers look at it. A modified vehicle behaves differently on the road, which means the risk for the insurer also changes.

For example,

A performance remap can push your engine beyond factory limits, while a lowered suspension or oversized wheels can make your car react differently at high speeds. Even a simple aftermarket lighting upgrade counts as a car modification UAE insurers pay attention to.

This is exactly why UAE insurers apply higher deductibles to modified vehicles.

How Do Car Modifications in Dubai Affect Your Insurance Premium?

When you make a car modification in Dubai, insurers look at how that upgrade changes your vehicle’s behaviour, safety and repair cost. And almost all insurers in the UAE have similar guidelines when it comes to modified vehicles.

Their rules are based on one idea: Anything that changes your car from its original factory condition increases risk. Here’s what the majority of insurers in the UAE follow when dealing with car modification —

1. Modified Vehicles Usually Get a Higher Deductible (Up to 15%)

Most insurers apply an additional deductible when your car has been modified. This can be up to 15% of the claim amount, depending on the modification type.

What does this mean for you?

If your car has AED 20,000 worth of damage after an accident, you could end up paying an extra AED 3,000 out of pocket simply because your car is modified.

2. Modifications Done Outside the Factory Can Lead to the Highest Deductible (Up to 20%)

If your car modification was done at a non-factory workshop, insurers treat it as a higher risk. This often leads to an extra deductible of up to 20% during a claim.

Why do insurers do this?
Because modifications done outside the factory may not meet original safety standards, this increases the chance of a claim becoming more expensive.

3. Undeclared Accessories & Enhancements Are Usually Not Covered

Most drivers don’t realise this, but accessories and enhancements must be declared and insured separately. If you install:

A new infotainment screen
Subwoofers or amplified audio
Ambient lighting
Custom upholstery
Dash cams hardwired into the system

…and don’t declare it, insurers can simply exclude these items during a claim.

Example:
If your AED 3,000 music system gets damaged, the insurer may pay for the accident damage — but not for the audio system because it wasn’t declared.

4. Modified Cars Are Often Treated Like High-Risk Vehicles

Across the UAE insurance market, modified vehicles are grouped into the same high-risk category as:

Sports cars
High-performance vehicles
Rental cars
Cars driven by young drivers

This automatically means:

Stricter policy conditions
Higher deductibles
More inspection during claims
Limited coverage on modified components

Even a simple cosmetic car modification Dubai garages offer can push your car into the high-risk zone if it affects safety, handling or repair cost.

Legal & Approval Requirements for Car Modification in Dubai (as of 2025)

When you consider a car modification in Dubai, you’re stepping into a regulated space. The UAE has now adopted a nationwide standard that directly affects how your modified vehicle must comply.

Here’s what the official regulation says and how it affects you —

On 22 October 2024, the Cabinet approved the resolution titled “Technical Regulation for Safety Requirements for Modified Vehicles”, which is mandatory across the UAE.
The regulation number is UAE.S 5014:2024 (“Safety Requirements for Modified Vehicles”).
It repeals the previous standard (UAE.S 5014:2016).
It enters into force 180 days after its publication — meaning from 29 April 2025, all car modifications must meet these standards.

What It Means for You (If You’re Modifying a Car in UAE)

If you carry out any car modification Dubai workshop offers — especially anything beyond a simple cosmetic change — your vehicle must comply with UAE.S 5014:2024.
If your vehicle does not meet these legal standards, even if you have a valid car insurance UAE policy, you may face registration issues, inspection failures or claim problems.
For modifications that affect structure, suspension, engine power, bodywork or safety systems, you must ensure the upgrade is RTA-approved (or via the Abu Dhabi equivalent) and meets the updated safety regulations.
After 29 April 2025, insurers will likely check for compliance with this regulation during claims for modified vehicles. So any oversight could impact your ability to claim.

Did You Know? Your Car Modification Could Cost You More Than Just Higher Motor Insurance

The given table highlights the penalties drivers face in the UAE for noisy or illegally modified vehicles —

Violation	Fine (AED)	Black Points	Extra Penalty
Using loud horns or blasting music that disturbs others	400	4	—
Noise caused by a modified or loud vehicle (exhaust/engine / sound mods)	2,000	12	The vehicle can be impounded
Driving a car with unauthorised modifications	—	—	Impound + AED 10,000 release fee
Not paying the impound release fee within 3 months	—	—	Vehicle may be auctioned

Many modified cars, especially those with —

loud exhausts,
performance tunes,
altered intakes,
aftermarket audio systems –

are instantly detected by Dubai’s new AI-powered noise radars. These radars identify the exact vehicle responsible. So even if you “tap the throttle for fun”, the radar knows!

⚠️ A Quick Example You’ll Relate To

Let’s say you installed a sports exhaust because you like the deeper sound.
Now imagine:

You’re crossing a quiet residential area at night.
You accelerate a bit.
The radar picks up the noise spike from your exhaust.

In less than a second, you’ve earned:
👉 AED 2,000 fine
👉 12 black points
👉 Possible vehicle impound (+ AED 10,000 to release it)

And if this modification isn’t declared to your insurer?
You’re now dealing with higher deductibles, limited coverage or even a rejected claim.

Thinking about giving your car a fresh new look or a power boost? Make sure your insurance keeps up with your modification, too. On Policybazaar.ae, you can quickly compare plans that actually fit the way you drive — whether it’s a body kit, performance tune or a small upgrade you’re proud of. Take a minute, check your options, and protect your modified car the smart, stress-free way!

Frequently Asked Questions (FAQs)

Yes, most insurers in the UAE require you to declare any change from the original manufacturer condition, i.e., any car modification. According to most car insurers in the UAE, vehicles with modifications are treated differently (higher deductibles up to 15%-20%).

Yes, it’s possible. However, the insurance premium may increase, and the deductible may be higher. Many insurers state that only modifications by authorised dealers or workshops (and compliant with UAE standards) will be covered.

Yes, even cosmetic changes count as a car modification that UAE insurers consider.If the accessory or change was not declared, your insurer could exclude that part or apply a higher deductible.

There is no fixed number published for every case, as the impact depends on the type, extent and value of the car modification UAE. But generally policies come with extra deductibles of up to 15% for modified vehicles and up to 20% for modifications outside factory standard.