You will need new shorter springs. I did this on a car a couple of years ago and it cost me about $65 per spring. Didn't need to alter damping but did have to check alignment both ends.
I presume you have a LS Zetec? I also have one and reckon it needs 2cm taken off for that menacing look, however it might scrape it's chin so I'm not going to worry.
If you have an issue with insurance leave it standard for peace of mind.
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