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How modification in your car affects the insurance policy: Report



Depending on the modifications made, your car insurance premium, it may increase or decrease.


Car enthusiasts often modify their car to enhance the beauty, add more comfort, or improve performance. These changes may affect the vehicle insurance premium as they may compromise the safety aspect of the vehicle.

Whether you are modifying your car or adding any accessories that may alter the safety or performance of the car, you must notify the car insurance provider of any such changes. Depending on the modifications made, your car insurance premium, it may increase or decrease.

Modifications That Can Raise Car Insurance Premiums

new paint job

Special paintwork like decorative decals or attractive designs painted on your car can increase the chances of theft and affect the insurance premium of the car.

car interior replacement

You must inform your insurer about any changes in the interior of the car. This includes replacing the car’s steering wheel, pedals, sound system or even the seats. The quality of the products used also affects the insurance premium.

engine modification

People often modify their engine to improve the performance of the car. Such modifications can help the vehicle to achieve higher speeds and faster acceleration. On the other hand, such changes also increase the risk of accident or theft, thereby increasing the risk profile of the car.

Therefore, any such engine modification, such as adding a turbocharger or nitrous oxide unit will increase the insurance premium amount.

replace engine

The insurance firm charges a standard car insurance premium on factory-installed engines based on the model, brand and year of manufacture. Therefore, replacing the original manufacturer’s engine with a non-standard one will affect the premium charges.


Nowadays, it is common practice to replace standard car wheels with alloy wheels or even wider tyres. Wearing such tires can increase the value of the car or the risk of theft or both. In any case, this often results in higher insurance premium costs.

Suspension system and brakes

Upgrading or replacing your brake and suspension systems can change a car’s overall risk profile and safety score. Inform your insurer to re-evaluate your insurance premium in case of any such modifications to your car.

Certain modifications can reduce car insurance premiums

Not all modifications result in higher auto insurance premiums. For example, installing an ARAI-approved anti-theft alarm system or tracking system in your car reduces the risk of theft or break-in. Similarly, installing parking sensors will reduce the risk of your car accidentally colliding with another car or a wall while overturning.

Such modifications reduce the risk for the insurer. Therefore, the insurer is likely to encourage such optimization by providing a discount on the self-loss portion 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. Failure to do so may result in the claim being rejected. Also, visit an authorized service garage and certified parts to make any changes to your car.

A comprehensive motor insurance policy should cover all damages caused to you, your vehicle and third party damages due to 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 in an accident).

This story is provided by BusinessWire India. ANI will not be responsible in any way for the content of this article. (ANI/BusinessWire India)

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)


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