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Car finance customers warned of increased premiums following car modifications

Drivers using car loans to purchase and modify a new car are being reminded of the laws and regulations relating to car modifications.

Drivers using car loans to purchase and modify a new car are being reminded of the laws and regulations relating to car modifications.

Direct Line Car Insurance says that any work which increases a vehicle's performance, value or desirability to a thief will attract increased car insurance premiums.

Spokesperson Jennifer Culley explains that this is because such modifications could raise the risk, value of likelihood of a claim.

Her advice to motorists planning to modify their vehicles is to ensure they are carried out by a professional and notify their car insurance provider of the work.

"There can be implications that an amateur may not consider," she says.

"Make sure you notify your insurer prior to performing any modification so that you know how much they will increase your premium and if the risk is still acceptable."

Any modification should be noted on the policy to ensure it is not invalidated, Ms Culley adds.

The Insurance Daily reported findings from confused.com in March which showed that modifying a vehicle can increase an insurance premium by up to 139 per cent.

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