Does Making Modifications in Your Car Affect Your Car Insurance Premium?

Some people own a car, some people make it their own with the help of modifications. If you are fond of modifications, you definitely should be aware how a modification can alter your car insurance premium. This modification could be anything from a minor change to revamping your car with some significant alterations. Some changes that you make to the vehicle will impact the amount of 4 wheeler insurance premium that you pay annually. Therefore it is advisable to consider the potential costs that you will bear when you modify your car. First let us understand what is a car modification? A car modification includes but is not limited to any changes that you made to your car in its original condition that is sold by the manufacturer. How important is it to modify the car and inform the insurer? Modification of your car increases its overall value. Be it the engine, the alloy wheels, new seat overs or a new music system. If you install them, automatically the value of your car increases. This increases the premium of your car too! That’s why it becomes very essential to inform your insurance company about the modifications that you have made. If you don’t, later on your claims can be rejected.

How do modifications change the rate that you pay for car insurance?

Insurance companies use some calculations before coming to the final price they will ask you for your premium. There are mainly two areas where car insurers assess your car insurance policy: Risk of theft: Modification such as making the car look flashy and good can increase its chances of being stolen. Risk of an accident: Modification in the name of increasing the performance of your car results in the car being prone to higher risk of accidents.

What modifications affect your car insurance premium?

Engine and mechanics modifications: The modifications that are done to ascend the performance of the engine or accelerator speed give rise to more chances of accidents. This will increase your car insurance premium. Breaks and suspension: If you wish to change the critical parts of the 4 wheeler such as brakes and suspension, you need to inform your insurer. If you are altering the breaks and suspension, it will affect the performance of the car on the road. You must inform the insurer of such amendments including the details of the service provider. Wheel modifications: Wheel modification is done to enhance the look of the car. It increases the possibilities of the car being stolen. It is important for you to inform your insurer about this modification so that they can calculate the premium accordingly. Car interior: If you plan to modify the car’s interior including but not limited to steering, pedals, sound system, seats, etc. you need to inform your car insurance company. It will affect the premium calculated on the car. Paintwork: Getting your car’s paint changed can drastically change the look of your car. Especially, adding complex racing designs and eye-catching patterns can completely change the look of your car. This might seem one of the most harmless modifications that you do to your car, but this also requires you to inform your 4 wheeler insurance provider. Car stickers: Many car insurance companies think decals or any stickers stuck on the car as a part of modification. If you either have one or plan of applying one, do check with your car insurance provider whether it would otherwise affect your car insurance premium.

What Modifications do not affect your Four Wheeler Insurance?

Any modification done to your car changes the premium charged on the car. However, certain changes do not adversely affect the premium if they are likely to decrease the risk of an accident or theft. For instance, insurance companies don’t count parking sensor as a modification as it protects the car from the damage that may occur while reverse parking.

Why declare your car modifications?

As a policy holder, it is your duty to disclose the modifications done to your car. If you have bought a second hand car and are not sure about the modifications, get it checked by a technician and disclose all the modifications. If you don’t disclose the alterations, no matter whether they were intentional – your application may be rejected, and your coverage will be void. Along with your car modification if you wish to switch your car insurance, you can look at Bajaj Allianz Car Insurance Policy. It is one of the most comprehensive policies in India with myriad of features. It has the following:

• 24x7 Spot Assistance
• Easy online 4 wheeler insurance purchase & renewal
• Tie up with 4000+ garages
• Zero Depreciation
• Motor On-the-Spot

  If you plan to modify your car, don’t forget to disclose it to your insurer and to enjoy the best possible 4 wheeler insurance in India, buy Bajaj Allianz Car Insurance Policy today!