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In New Zealand, insurers generally assess modified, imported and unusually valuable cars by looking at what the vehicle is, how much it would cost to replace or repair, how it is used, and how its modifications or history affect the risk.

The important distinction is that getting a car insured is not necessarily the same as getting it insured for its full value. An insurer might agree to cover a vehicle but apply a standard market-value settlement, exclude certain modifications, impose conditions, or require a specialist policy.

1. What insurers assess

Modified vehicles

Insurers consider engine upgrades, turbochargers, suspension changes, non-standard wheels, exhausts, body kits, custom paint and other alterations. They may accept the car with an additional premium, excess or special conditions, or decline it. Some require written approval. Duty of Disclosure: What to Tell Your InsurerHow Are Modified Vehicles CoveredVehicle Policy Wording

Imported vehicles

They assess the make, model, year, exact specification, parts availability, repair costs and local resale market. A rare Japanese import, grey import or model never officially sold in New Zealand may need extra documentation or specialist underwriting. These factors can affect both acceptance and valuation.

Unusually valuable or collectible cars

They may assess condition, originality, rarity, restoration quality, provenance, specialist valuations and comparable sales. A standard market-value policy may not reflect a collector car's true worth, so agreed-value, certified-value or specialist classic-car cover may be worth discussing. Car insurance buying guideVehicle Policy WordingClassic Vehicle Insurance Policy

2. How they decide what the car is worth

Two common valuation methods are important in New Zealand. Car insuranceCar insurance buying guide

Method	How it works	What to watch
Market value	The vehicle's value immediately before the loss, assessed under the policy's valuation rules.	Modifications and rarity may not add as much value as you expect.
Agreed value	You and the insurer agree on a value, recorded in the policy schedule.	Check whether modifications and accessories are included and whether the value changes at renewal.
Certified or fixed value	Some specialist policies offer a valuation-based or specified-value arrangement.	The insurer's definition, valuation requirements and settlement conditions determine what you actually receive.

An agreed value is not necessarily a guarantee that every component, restoration expense or modification will be paid for separately. The policy wording still matters.

For example, AMI explains that its agreed value can be adjusted at renewal, while its sum-insured arrangements can be subject to a market-value limit. Is My Car Insured For Agreed Value Or Market Value?My Car Is Insured For Agreed Value. Does The Value Remain Unchanged?

3. What evidence might they request?

For a modified, imported or high-value car, prepare the following where relevant:

• Vehicle details: VIN, registration, year, exact model and variant, import history and specification.
• Modification list: Parts fitted, performance upgrades, installation invoices, receipts and any engineering or certification documents.
• Valuation evidence: A recent independent valuation, comparable NZ sales, purchase invoice or auction records.
• Condition and originality: Current photographs, service history, restoration records and evidence of rare factory options.
• Security and use: Where the vehicle is kept, anti-theft devices, annual mileage, intended use and who will drive it.

An insurer may not require every item. However, strong documentation helps establish both the risk and the amount of cover requested. The Insurance Council of New Zealand advises disclosing relevant information even if you are unsure whether the insurer specifically needs it. Duty of Disclosure: What to Tell Your InsurerMotor Insurance: What You Need to Know

4. Road legality and insurance are separate

A car having a current Warrant of Fitness (WoF) does not, by itself, establish that an insurer has accepted its modifications.

New Zealand Transport Agency Waka Kotahi says certain modifications, including some engine, steering and suspension changes, require Low Volume Vehicle (LVV) certification. Imported modified vehicles may also need specialist certification before they can be registered for road use. Modifying your vehicleVehicle Inspection PortalScratchbuilt or modified vehicles

In practice, you should establish both that the vehicle meets applicable road requirements and that your insurer has accepted its actual specification.

5. What if a standard insurer will not cover it?

You can approach a specialist vehicle insurer or a broker experienced in modified, performance, classic or collector vehicles.

For example, Star Insure publishes specialist vehicle policy wording covering modifications and several different valuation arrangements. Check its current eligibility criteria and settlement terms rather than assuming every vehicle qualifies. Vehicle Policy Wording

Useful starting points:

• Star Insure — vehicle policy wording
• AMI — how modified vehicles are covered
• Consumer Protection NZ — car insurance guide

6. Questions to ask before accepting a policy

When obtaining quotes, ask the insurer to confirm in writing:

1. Have you accepted the exact import specification and every listed modification?
2. Is the policy based on market value, agreed value, certified value or another arrangement?
3. Are the modifications and aftermarket parts included in the insured value, and are there any separate limits?
4. If the vehicle is written off, how will you value a rare model that has few comparable NZ sales?
5. Can repairs use genuine imported parts or specialist repairers, and are freight and overseas parts costs covered?
6. Are there restrictions on track days, motorsport, club events, storage or occasional use?
7. What happens to the cover and premium if I modify the car again or its value rises?

The key principle: get the insurer's written acceptance of the car as it actually exists, and make sure the settlement method reflects what it would genuinely cost to replace. A high sum insured alone does not guarantee that result.