Car modification is a popular fad among auto enthusiasts. These can range from performance-based modification or simply design based upgrades. High turbo output, engine upgrades, steering and gearbox updates, or vinyl, applying wraps and such similar changes. These changes definitely set your car apart from the crowd but its impact is also noticed on your car insurance premium amount.
Not all modifications are permitted by the law, but there are few modifications that are allowed which shall impact the premium. For this purpose, it is essential to intimate your insurer and get it amended in your four wheeler insurance policy.
What is the impact of alterations or modification on your car insurance premium?
Car insurance premiums are considered accounting for various factors like model, make, engine capacity, accessories, condition of your vehicle and more. Any modifications to your car change the parameters for these calculators and impact the premium directly.
For example, while selling a car that is driven for 50,000 kms, the insurance premium will differ from a new car from the same manufacturer. Thus, any changes that enhance the performance or look or even accessories shall impact the premium and must be informed to your insurance company.
What car modification should be intimated to your insurance company?
#1 Alteration to the body
Any alteration to the body of the car is done to improve the aesthetic appeal of your car. It can also be done to increase the load-bearing capacity. Hence, any alteration in the body made for whichever reason should be informed of the insurer so as any changes in the scope will be covered under your insurance policy. Note that addition of anti-theft devices approved by ARAI may result in a some savings on your premium during renewal.
#2 Performance upgrades
Any changes that specifically increases the performance of the car in terms of power figures should be communicated to your insurance company. Since insurance premiums are directly impacted due to the power output of your car, it is necessary to inform about such changes. These changes can be either intimated at the initial purchase date or at time of car insurance renewal online.
#3 Braking and suspension system
Any changes in these features are likely to influence the IDV of your car and thus should be informed to the insurance company.
Interiors like music system, air conditioning, dashboard, upholstery are features that are customisable when buying a car. Any changes to these accessories will increase the scope of insurance policy and should be intimated to the insurer.
#5 Alterations for disabled users
Car manufacturers are now making their cars friendly for disabled drivers too. Features like automatic transmission, swivel seats, power steering and more are widely available that make it friendly for all types of drivers.
#5 Alterations for adventure purposes
Often individuals modify their cars for races, moto-cross contents and cross-country expeditions, etc. If these changes are to be insured, they need to be intimated to your insurance company.
When you make alterations to your car, remember to make necessary additions to your policy using add-ons. A car insurance premium calculator is a nifty tool that will aid the comparison process of different add-ons that can be purchased to ensure optimal coverage at an affordable cost.