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.

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 — and it’s worth using the correct scheme name when you’re dealing with your state authority or a certifier:

• NSW: significantly modified vehicles need certification under the Vehicle Safety Compliance Certification Scheme (VSCCS), administered by Transport for NSW — a licensed VSCCS certifier inspects and certifies the vehicle against the relevant Australian Design Rules
• VIC: VicRoads requires notification and inspection for most non-factory modifications
• QLD: modifications are governed by the Queensland Code of Practice for Vehicle Modifications; low-risk changes may not need formal approval, while more complex modifications require certification by an Approved Person under the relevant modification code — check the current handbook rather than assuming your specific mod is exempt
• 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 One Underwriting, Motorsport Australia (the governing body formerly known as CAMS, rebranded in 2020) affiliated brokers, and Shannons. There’s no published rate card — pricing depends on your car’s value, the circuit, and your excess level. Get quotes from more than one specialist rather than assuming a figure, and ask about annual multi-event policies if you attend more than a handful of days a year.

Sources

• Service NSW — VSCCS Licensed Certifiers
• Wikipedia — Motorsport Australia
• Shannons — Modified Car Insurance
• One Underwriting — Track Day Insurance