Many people continue to modify their car to make it beautiful, more comfortable and improve its performance. These changes may affect the insurance premium of the vehicle as it may be a compromise in terms of safety. If you modify the car or add accessories to it, this may change the safety or performance of the car, so you should inform the car insurer about this. Depending on the modification, your car insurance premium will increase or decrease.
These modifications can increase the car’s insurance premium
new paint Specialized paints such as painted decorative stickers or eye-catching designs on your car increase the chances of it being stolen. This can also put a burden on the car insurance premium.
Changes in the interior of the car: You must inform your insurer of any changes made to the interior of the vehicle. This includes the steering wheel, pedals, sound system or car seat. The quality of the products used also affects the premium.
Engine modification: People often modify the engine to improve the performance of the car. Such modifications help to increase the speed and acceleration of the car. On the contrary, such changes increase the risk of accidents and theft. This increases the risk profile of the car. Therefore, any engine modification that includes the addition of a turbocharger or nitrous oxide unit will increase the amount of the insurance premium.
Engine replacement: The insurance company charges a standard auto insurance premium for a factory-installed engine based on the model, make and year of manufacture. Therefore, replacing the OEM engine with a non-standard engine will affect the premium charges.
wheels: These days, it has become common practice to replace standard car wheels with alloy wheels or wide tires. Fitting such tires increases both the value of the car and the risk of theft. In both cases, this results in a higher insurance premium.
Suspension and Brake System: Upgrading or changing the brakes and suspension system can change the safety score and overall risk profile of the vehicle. If you do, inform your insurer so that the premium can be reassessed.
These modifications can lower your car insurance premium
Not all types of modifications increase the car insurance premium. For example, having an ARAI approved anti-theft alarm or tracking system installed in your car reduces the chances of it being stolen or broken. Similarly, by installing parking sensors, the risk of the car colliding with another car or a wall while reversing is reduced. Such modifications reduce the risk to the insurance company or insurer. Consequently, insurers encourage such customization by offering a discount on the damage portion below the auto insurance premium.
Let us tell you once again that it is necessary to inform the insurer of any modifications or changes to the vehicle. Failure to do so may result in your claim being denied. Also, to carry out any modifications on the car, visit an authorized workshop and install certified parts. Comprehensive car insurance should cover you, your vehicle and third parties for damage caused by accidents. It is worth noting that Kotak General Insurance offers a comprehensive car insurance plan under the name Kotak Car Secure. This plan provides protection for your vehicle against natural and man-made disasters. This also includes damage to a third party during an accident.