Car enthusiasts often modify their car to enhance its aesthetic appeal, add more comfort, or improve performance. These changes can affect the vehicle insurance premium as they may compromise the safety aspect of the vehicle.
Whether you’re modifying your car or even adding any accessories that could alter a car’s security or performance, you need to inform the car insurance provider about any such changes. Depending on the modifications made, your car insurance premium, it may increase or reduce.
Modifications That Can Increase Car Insurance Premium
- New Paint Job
Specialised paintworks such as decorative decals or eye-catching designs painted on your car can increase the chances of theft and may have a bearing on the car’s insurance premium.
- Changing Car Interiors
You need to inform your insurer about any changes to the car’s interior. This includes changing the car’s steering wheel, pedals, sound system or even seats. The quality of products used also affects the insurance premium.
- Engine Modification
People often modify the car's engine to improve its performance. Such modifications can help the vehicle achieve higher speed and quicker acceleration. On the flip side, such changes also raise the risk of accidents or even theft, increasing the car's risk profile.
Therefore, any such engine modification, like adding a turbocharger or nitrous oxide unit, will increase the insurance premium amount.
- Replacing the Engine
The insurance firm charges a standard car insurance premium on factory-installed engines based on the make of the model, brand, and manufacturing year. Therefore, replacing the original manufacturer’s engine with a non-standard one will affect the premium charges.
Nowadays, it is common to change the standard car wheels with alloy wheels or even broader tyres. Installing such tires can increase the car’s worth or the risk of theft or both. In either case, it often results in higher insurance premium costs.
- Suspension System and Brakes
Upgrading or changing your brakes and suspension system can change the overall risk profile and safety score of the car. Notify your insurer to reassess your insurance premium in case of any such modifications to your car.
Some Modifications Can Reduce Car Insurance Premium
All modifications don’t result in a higher vehicle insurance premium. For instance, Installing an ARAI-approved anti-theft alarm system or a tracking system in your car lowers the risk of theft or break-in. Similarly, installing parking sensors will reduce the risk of accidentally smashing your car against another car or a wall while reversing.
Such modifications reduce the risk for the insurer. Therefore, the insurer is likely to encourage such customisations by providing discounts on the Own Damage part of the car insurance premium.
Benefits of a comprehensive motor insurance policy
It is important to inform your car insurance provider about any modifications/changes made to the car. Not doing so could result in the rejection of the claim. Also, go for authorised service garages and certified parts for making any changes to your car.
A comprehensive motor insurance policy should cover all the damages caused to you, your vehicle, and the third-party damages caused by the accident. Offered by Kotak General Insurance, Kotak Car Secure is a comprehensive car insurance plan that protects your car from damages caused by natural and man-made calamities (including third party damages caused in an accident).