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How Modifications in your Car affect your Car Insurance

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car background design 1300 61

When we buy a car, we do our research and compare the features and specifications of every model in consideration that fits our desired budget. Sometimes we get lucky when everything comes together and we get exactly what we had in mind. However, there are times you may not be pleased with a specific feature of your car. Generally, cars are designed by keeping in the consideration of people’s likes and preferences, and also what suits the model the best. So, car owners either upgrade their cars or sometimes even revamp them to suit their taste better.

They also add their personal touches and customize their vehicles so that it feels more aesthetic. These modifications are sometimes done even to boost the efficiency of their vehicle. But, what most people don’t realize is that making these modifications affects their car insurance premium. So, it is ideal to have a thorough understanding of how these modifications affect your car insurance so as to know the potential costs that you will have to shell out at the time of payment.

How do modifications in your car affect your car insurance? 

Modification in a car is nothing but the enhancement or customization of a car in order to amp up their looks or performance. There is a general belief that these car modifications are mostly done by young drivers in order to keep up with the current trends. It could be something as simple as getting a revamped upholstery or getting alloy wheels to give it a more amped-up look. Most insurance companies believe that technical modifications come with higher risks when compared to ordinary cars and are more expensive than the original vehicle.

Insurance providers have classified these modifications into specific two categories –

  • Modifications that don’t affect the premium 
  • Modifications that affect the premium

Modifications that don’t affect the premium

There are certain modifications that can be done to a car that will not affect the car premiums like painting the car, the addition of stickers, installation of no-risk bearing items like an air conditioner, sound system, replacement of seats, etc. These modifications do not affect the premium since they do not possess any threat or risk to the car which might result in accidents.

Modifications that affect the premium

The addition or up-gradation of any feature that amps up the performance of the car and also increases the risk of accidents affect the insurance policy premiums. Modifications done to the engine, braking system, interior features, addition of cladding, etc may add to your existing premium amount for they increase the risk of accidents. However, installing an ARAI-approved anti-theft device in the car makes a car owner eligible for discounts on their own-damage car insurance premium of the policy.

It is the responsibility of the car owners to disclose any and every modification made to their car at the time of policy purchase to their insurance providers. Not disclosing the same could lead to your claims getting rejected at the settlement. 

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