How Will Car Modification Affect Your Insurance Policy?

Posted on: Feb 20, 2019 | | Written by:

How Will Car Modification Affect Your Insurance Policy?

Published on April 27, 2020. EST READ TIME: 5 MIN

Ever thought of getting your car fitted with flashy headlights or turbo engines? How about replacing those boring wheels with some robust alloy wheels? It might seem tempting to get your car customised in order to gear up its performance and appearance but there is one thing we often miss considering. A small glitch – it can increase the cost of your car insurance premium. In fact if you are wondering and trying to evaluate factors that might be contributing to your car insurance costs, car modification is one of the most prime reasons. Irrespective of your age, type of car, gender and driving experience, this one factor can substantially affect your insurance cover. Even though you have got the car modified for enhancement of its features, you have to be ready to pay a higher premium for it. You can check various auto insurance plans on HDFC Ergo website to check the one that suits you the most.

What is Considered as a Modification

Any big or small modification you make to your car’s factory model to make it look different, appealing or efficient is known as modification of your car.

Modified CAR INSURANCE premiums are generally higher as compared to classic car insurance. Modifications seem to increase the risks to your car in terms of efficiency or theft, since your insurance cover is there to cover those risks, the premium amounts go high. Consider for an example, if you have turned a turbo engine, it would speed up your car but also increase the chances of your car landing up in an accident. Another example would be where you get alloy wheels or other modifications to make your car look attractive, that increases the probability of theft, thereby increasing the risks involved.

Considering these factors, your insurance provider will consider all probabilities and hence make your insurance premium extremely high. On the other hand, installing parking sensors would decrease your cost of premium as it reduces your risk of smashing while reversing the car.

How do modifications affect car insurance?

1. Wheel modifications

Wheel modification may enhance the look of your car but at the same time it may upturn its value. So, do not forget to disclose such modifications to your insurance provider.

2. Car interiors

Making any modifications to your steering wheels, seats, sound system or pedals should also be informed to your insurance company. The quality and wear and tear of these additions vary, and hence it affects your insurance premium too.

3. Paint work

You may think that getting your car’s paint changed is the most harmless modification you can think of, but it is vital that you inform it to your insurance provider, especially if it is an extraordinary paint job like racing designs or any other eye-catching design that can significantly change the look of your car and make it stand out in the crowd. The reason is that such modifications increase the possibility of theft and as a result your premium amount increases.

Checklist for Car Owners Who Are Planning to make Modifications

Now that you know more about car modifications and their impact on your car insurance premium , you may want to approach the modification project with greater care. Here is a handy checklist to help you move forward:

• Be aware of the illegal modifications

First and foremost, do your research and determine which car modification is allowed in India and which is not. For example, it is illegal to use a tinted film on the windows of your vehicle. It is also illegal for you to attach loud, powerful horns and sirens in the car. This apart, you should refrain from installing extra or fancy lights as that is not allowed by the law. Find out what modifications are not allowed and steer clear of them when undertaking the car modification project.

• Be aware of the legal modifications

Similarly, there are some permissible modifications that you can safely undertake. These include modifying the colour of your vehicle and upgrading the tyres. You can also modify the vehicle to make it accessible for differently-abled people. Additionally, you are also allowed to upgrade the suspension of the car to make it smoother and safer.

• Inform your insurance provider

No matter what kind of modification you do to your car, always remember to inform your insurance provider and keep them in the loop. Your insurance premium will increase, but that should not stop you from being honest and open with your insurer as that will help in the long run.

Conclusion

Therefore, it is imperative that before getting any kind of modifications done to your vehicle, you inform your insurance provider well in advance. This will help your insurance provider calculate the impact and let you make a wise decision. Also, remember that any modification you make to your vehicle may undermine your policy if you do not inform your insurance provider on time.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before going ahead with the sales.

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