Modified car insurance in Australia is governed by a mix of federal and state/territory legislation, creating a complex landscape for enthusiasts. The key federal framework is the Insurance Contracts Act 1984, which mandates disclosure obligations — but implementation varies by insurer and state. According to the Motor Trades Association of Australia, there are approximately 2.3 million modified vehicles on Australian roads, with fewer than 40% carrying appropriate specialist insurance.

What Must You Declare in Australia?

Under the Insurance Contracts Act 1984, you must disclose anything a reasonable insurer would consider material. This includes all vehicle modifications. Australian insurers have successfully avoided claim payments for non-disclosed modifications including exhaust systems, wheel upgrades, and suspension changes — not just engine work. The conservative approach is to declare everything.

State Registration and Modification Rules

Insurance requirements interact with your state’s vehicle modification rules:

• NSW: Modified vehicles require an ATECO (Automotive Trades Electronic Certification Organisation) engineer’s certificate for most modifications
• VIC: VicRoads requires notification and inspection for most non-factory modifications
• QLD: Approved low-risk modifications require a LM (Low Risk Modification) plate; significant mods require an engineer’s certificate
• WA: DoT requires reporting of modifications affecting safety systems

An unregistered or illegally modified vehicle may be uninsurable — getting state compliance sorted before seeking insurance is essential.

Best Australian Specialist Insurers

• Shannons — Australia’s best-known specialist for modified and classic cars
• Enthusiast Motor Insurance (EMI) — dedicated to performance and modified vehicles
• Hagerty Australia — agreed value, oriented toward collector and classic builds
• Club 4×4 — strong on lifted and off-road modified vehicles
• Just Cars Insurance — strong on older and modified vehicles

Track Day Insurance in Australia

Road policies universally exclude track use in Australia. Track day insurance is available through specialist providers including Motorsport Australia (CAMS) affiliated brokers and Shannons. A typical track day insurance day rate in Australia is AUD $80–$250 depending on the car’s value and excess level. Annual motorsport policies are available from AUD $400.

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