The short answer: yes, chip tuning can affect your car insurance. As soon as you modify the engine power, your car no longer meets the original manufacturer’s specifications – and that can have consequences for your policy, premium and cover.
Why does chip tuning matter to insurers?
Insurers calculate their premiums based on manufacturer’s specifications such as power output, weight and intended use. When you have your car chip-tuned, the power output (often) changes and, in some cases, so does the car’s handling. For the insurer, this means greater risk, which can lead to:
- Higher premium
- Changes to your cover
- Loss of compensation if the tuning has not been declared
In the worst-case scenario, an insurer may decide not to pay out following an accident, particularly if it transpires that the car has been tuned without this being reported or registered.
Are you obliged to report chip tuning?
Yes. In the Netherlands, you are legally obliged to report technical modifications that affect performance or safety to both the RDW and your insurer. If you fail to do so, you run the risk of being uninsured or only partially insured in the event of a claim.
Does this also apply to Stage 1 chip tuning?
Yes, even with relatively mild Stage 1 tuning, the engine management software is altered. This may seem harmless to you, but for an insurer, any adjustment that deviates from the factory settings counts as a modification. It is therefore wise to always declare this, however minor the adjustment may seem.
Advice from JT-Products
At JT-Products, we do not carry out chip tuning ourselves, but we advise customers daily on parts that support tuning, such as air intakes, cooling systems and fuel systems. Our advice: don’t be caught out. Always consult your insurer before having your car tuned, so that you know exactly where you stand.
