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How Modifications In Your Car Can Affect the Premium
Feb 14, 2023

How Adding Accessories to Your Car Can Affect Your Premium Rates?

Have you ever thought of personalizing your beloved car? Have you ever considered adding some extra headlights or alloy wheels to your car, improving its performance, changing its colour, or putting on accessories to change the look of your car? Pampering one of the most valued possessions, your car, is one thing that many of you might have thought of or done. But do you know that making modifications to your car can affect your car insurance premium? The premium for your car insurance depends on several factors:
  1. IDV (depending on make, model, sub-model, and registration date) of your car
  2. Cubic capacity (cc) of your car
  3. Age of your car
  4. Geographical zone
  5. Accessories, which you use to modify your car
  6. Add-on covers opted by you for your car along with your comprehensive car insurance policy
  7. Voluntary deductibles are chosen by you
  8. NCB - No Claim Bonus (if you do not file a claim in your current policy period)
The car accessories that you put in your car to give it a personal touch might be expensive, and thus, insuring them is of utmost importance. While minor modifications like replacing the car mats and changing the upholstery might not have a major impact on the security aspect of your car, however, customizations like installation of a CNG/LPG kit, fitting fiberglass fuel tank, and adding electronic accessories might increase the risk of theft, burglary, and the damage incurred in case of an unfortunate event like an accident. Usually, cars fitted with additional accessories are at higher risk and, therefore, having an appropriate car insurance policy is a must so that you get maximum coverage in case of any tragic incident. The premium of your car insurance policy might increase if you customise your car by adding accessories. However, the change in premium depends on the type of additions & can be estimated with the help of an online car insurance calculator. Some of the most used accessories in a car, which might increase your premium amount are:
  1. Electronic accessories like extra headlights, audio & video accessories, car dash cam, car jump starter and GPS.
  2. Other accessories like chrome bumpers, fog lights, alloy wheels, spoilers and tire pressure monitoring systems.
  3. CNG/LPG kit
  4. Fiberglass fuel tank
It is best advised that you inform your insurer about the modifications that you are making in your insured vehicle. It is important to update your policy during car insurance renewal if you have installed any of the accessories after buying your car. If you have installed the accessories at the time of purchasing your car, you should ask your car dealer to include the cost of the same in the final price of your car. This will help insurance companies to offer you a cheap car insurance plan that provides adequate coverage. You might also want to enhance the coverage of your base plan after the addition of these accessories by opting for suitable add-on covers. Even installing an aftermarket CNG kit on your car is considered an alteration to the car. This is because there is an alteration in the fuel type on which the car operates. Thus, there is a need for informing your insurance company by way of an endorsement. This is possible by making a request for endorsement in your car insurance policy where the insurer makes a note of the changes made. Failing to request an endorsement may lead to the rejection of your claim application in the event of an accident or damage to your car. We understand that your car is your most valuable asset and thus we recommend that you always opt for an adequate car insurance policy that can safeguard your finances if your car gets lost/damaged in case of any unfortunate incident. Make sure you include all the installed accessories of your car in your car insurance policy so that any damage done to them due to accident or loss incurred by you in case of theft can be covered by your car insurance plan.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.      

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