Modified Car Insurance in UAE: Everything You Need to Know

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The factory version of the cars usually has generalised amenities that focus on the masses. To enhance some features and looks, you may need to replace or upgrade a few parts. Now, when you buy insurance for your new car, the insurance company only covers the parts installed during manufacturing. Any modifications, generally called aftermarket, can impact your car insurance in UAE. The insurance premium also depends on the type and build of the car. If the replacement parts are not easily replaceable, you may have to pay a higher premium.  

Depending on the car insurance company, you may have a different definition of car modification. While buying car insurance in UAE, you need to clarify everything that your issuer considers a modification.

Since traditional car insurances don’t protect against loss or damages to aftermarket parts, your vehicle can be exposed to risk. A modified car insurance plan in UAE secures the modifications in your vehicle and thus ensures you adequate coverage. The following article sheds light on modified car insurance in UAE, its benefits and how you can get one. 

What is a Car Modification?

Any alteration to enhance the performance, looks or longevity of your vehicle can be called a modification. They may not necessarily add value or degrade the vehicle’s warranty. However, they make your car unique and deliver you an enjoyable ride. A modification can range from simply installing a seat cover to replacing the engine altogether. It depends on your insurance provider, whether they consider minute changes as a modification or not. Following are some of the widely done modifications - 

  • Changing bumpers or chrome rims.
  • Installing/replacing turbo boosters and chargers. 
  • Executing paint jobs and related modifications.
  • Replacing/installing sound systems/players. 
  • Changing exterior lamps, interior lightings, etc.

To get comprehensive coverage, you need to intimate your insurer of each modification, who then quotes the premium accordingly. Not all modifications shoot up your modified car insurance in the UAE, and a few modifications such as installing anti-theft alarms or a rearview camera can eventually bring your premium down. It is for the fact that security enhancements can reduce claim chances. 

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What exactly is Modified Car Insurance?

As mentioned before, traditional car insurances in UAE have a downside of covering only the factory-made parts. Modified car insurance, on the other hand, protects your vehicle as well as the customised parts. To have a better understanding of its working, we need to understand car insurance and its coverage. 

Normal car insurance protects your vehicle against loss or damages due to accidents and medical expenses for the injured (driver and passengers). Comprehensive car insurance includes vehicle damage due to fire and allied perils even when you are not driving. Third-party liability insurance protects the loss of life and property of individuals other than the insured. However, these insurances don’t cover any modifications in your car and damages to such items cannot be claimed.

To ensure the complete safety of your vehicle, you need to buy additional protection in the form of modified car insurance. 

Several insurance companies in the UAE offer aftermarket modification coverage which secures the repair and replacement of your customised products during accidents. The insurer reimburses the cost of factory-installed equipment and the modified parts. If your insurer doesn’t provide customised parts protection, you may choose a specialised insurer that covers rare vehicles like classic, vintage, sports cars, etc. They usually offer modified car insurance. Getting additional coverage will surely increase your premium, so you should clarify it with the insurance provider. 

Should You Inform Your Insurer about any Modifications?

You need to inform your insurance provider about your car modifications. It’s so because to save a little on your premium you may risk your complete reimbursement. Considering misrepresentation of insurance coverage, your insurance company may deny your claims on finding customisation without intimation. 

Additionally, to make the reimbursement process hassle-free and ensuring your insurance company that you are not filing a fraudulent or excessive claim, you need to disclose your car modifications. You may not get the reimbursement for aftermarket customisation in normal insurance; still, you should inform your insurance provider. 

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How do Customisations Affect My Car Insurance Premium? 

A car modification can affect your insurance premium positively or negatively. Customisations that are not security-related increases the price of your car insurance premium in the UAE. The issuer can decide the premium price based on what it considers a modification. A simple mobile mount or steering wheel cover may not be considered a modification and won’t impact your insurance. 

There are several instances where modifications can reduce your insurance premium. These customisations are specific to security upgrades. If you have any modifications or planning one in the future, it is better to consult your insurance representative and ask about the impact on your insurance premium. 

Car Modifications that can Reduce Your Insurance Premium 

While most of the customisations usually increase the insurance cost, safety modifications can lower your insurance premium. With security upgrades, your vehicle possesses a lesser risk to the insurer and they may offer you a discount accordingly. The following modifications can bring down your insurance price. 

  • Installing an anti-theft security system - Instruments such as Burglar’s Alarms, GPS and other tracking devices, OnStar Service, LoJack, etc. can help you locate your vehicle, reducing the risk of theft. 
  • Installing Rearview Camera - Rearview camera helps you while reversing, blind spot detection, etc. 
  • Installing Adaptive Headlamps - An adaptive headlamp increases the night vision capability. 

Not all safety modifications reduce your insurance premium, but they reduce the chances of accidents. If the replaced parts are expensive, the insurer may increase your premium cost because repairing/replacing such parts can be costly.  

What are the Benefits of Modified Car Insurance in the UAE?

Modified car insurance comes with numerous benefits. If you are confused about whether to opt for modified car insurance, consider the following benefits - 

  • Secures Customised Parts of the Vehicle - Normal car insurance usually covers only the factory-made parts. If an accident occurs, the insurance company won’t reimburse for the aftermarket modification, resulting in higher expenses from your pocket. 
  • Protects Your Car Insurance Plan - If you modify your car and don’t disclose it to your insurer, the company may reject your insurance claim. Modified car insurance protects your customised parts and also the policy. 

Getting involved in an accident with a modified car can have a hectic claim settlement if you don’t have modified car insurance. 

What are the requirements for a modified car in UAE?

Modified cars in UAE need to satisfy a few basic requirements to be eligible for modified car insurance. These criteria may vary from one company to another. 

  • Vehicle modification done through an authorised dealer or showroom may only be able to receive modified car insurance. The insurer may not accept applications for the vehicle modified through third-party workshops. 
  • The modified car owner needs to possess a certificate of modifications issued by ESMA (Emirates Authority for Standardization and Metrology). ESMA issues the certificate after safety inspection and roadworthiness. 

How to Purchase Modified Car Insurance in UAE?

Normal car insurance won’t cover modified parts of your vehicle. To buy modified car insurance, you can visit the insurance provider in person or reach out to the Policybazaar support team. Here, we will guide you through the whole process of purchasing a modified car insurance plan.


Modified car insurance is an effective option to protect customised parts of your vehicle. Individuals who like modifying their vehicles should opt for it to ensure complete safety. Modified car insurance may not be compulsory, but it can cause claim rejection if you don’t disclose your vehicle modifications to the insurer. Also, if you have existing car insurance, it’s better to consult your insurance representative and clarify vehicle customisation impact on your premium before modifying your vehicle.

Several insurance providers offer custom parts and equipment add-ons, while some may provide separate modified car insurance. Compare various insurance options available before purchasing one.

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