Do Car Modifications Affect My Insurance Premium?

You might get tempted to make changes to your car to improve its performance or look, but doing so can quickly make your car insurance more expensive.

Car lovers who devote a lot of time and effort to getting their cars modified. The performance and appearance of a car may both be improved by modifications. It's also crucial to be aware that no vehicle can be modified from its original specifications, according to Section 52 of the Motor Vehicles Act of 1988. Only a few sorts of changes to the vehicle are permitted.
 

What is a car modification?

This can be any small change you make to the factory (company) model of your car to make it look different and stand out. Changes will be made to make it work better, look better or improve the overall dynamics of the car. When you modify your car, the risk goes up, so the insurers are extra cautious.
 

For example, if you upgrade your car with a turbo engine or add spoilers, the speed of the car will go faster, thereby increasing the chances of an accident. If you add alloys or any other modification that makes your car look good, it will also be more likely to be stolen.
 

Taking all of these things into account, insurance companies figure out all the possible outcomes and come up with the highest premiums. On the other hand, fitting parking sensors would lower the premiums because it would make it less likely that the car would hit something when you reverse your car.
 

Changes that can make your car insurance go up

1. Engine Modification

When changes are made to the engine to make it more powerful and speed up acceleration, the risk is always higher. This is because cars are more likely to crash when going fast. When people drive carelessly, they are more likely to pass other cars, do rash driving and other dangerous things. Because of this, modifying with nitrous oxide or a turbo supercharger on one’s car can make their insurance cost more.
 

2. Altering wheels

Changing your car's wheels can make it look better, but upgrading them can make it worth more. So, if one changes their car's wheels, make sure their insurance company knows about it on time.
 

3. Suspension & Brakes

The brakes help in controlling car’s speed and any changes to such important parts would need to be approved by the insurance company. If an individual gets better brakes for their car or changes the way it rides, its performance changes on the road.
 

This is also something they need to tell their insurance company. Also, the insurance company won't know much about where the insured had their car modified.
 

4. Interiors

The changes an individual makes to the car's steering wheel, pedals, seats or sound system should be communicated to their insurance company. The way your insurance premium is calculated depends on the quality of the products used and how much wear and tear they have.
 

5. Paint work

Getting the car's paint changed might seem like the safest change you can make to it, but you still need to notify the car insurance company. Especially if you get complex racing designs or other eye-catching designs painted on your car, this can change entirely the way it looks. It makes it flashy that someone might steal it, so the insurance premium will also go up for additional protection.
 

6. Non-standard engine swap

The engine of the car is an important part of figuring out the car insurance premium. A non-standard engine is a surefire way to get a non-standard insurance risk and an increased premium. The year, make and model of your car are taken into account by the insurance company when figuring out how much your policy will cost. All parts of the package are made based on this evaluation. If an individual looks up car insurance online, they'll find that the premium for certain car models is usually the same and if anything changes, they might have to recalculate their policy premium.
 

Things to Keep in Mind

Before having any modifications done to the car, make sure you notify the insurer well in advance. This will let them assess the impact on the car and compute the premium accordingly. Don't put it off until the last minute when it comes to coverage renewal. Every insurance provider has a different perspective on the changes you make to the car.
 

Coverage might become invalid if you do not notify the insurance provider before making any changes to vehicle. While the information might increase the overall cost, if it is not revealed, it may be regarded as deceptive and cause complications throughout the claim process.
 

Key Highlights

• It's also crucial to be aware that no vehicle can be modified from its original specifications, according to Section 52 of the Motor Vehicles Act of 1988.
• When you modify your car, the risk goes up, so the insurers are extra cautious.
• The way your insurance premium is calculated depends on the quality of the products used and how much wear and tear they have.
• Coverage might become invalid if you do not notify the insurance provider before making any changes to the vehicle.

 

FAQ

1. Does modification nullify insurance?

Making changes to a car could make it more likely to crash or raise its value. The chances of getting stolen are very high with sparkling changes. If you don't tell the insurance company about the changes to your car, then policy could be cancelled. So, you should pay extra attention to that.

2. What changes count as an alteration for car insurance?

• Wrapped parts like the dashboard and trimmed chrome
• Steering wheel replacement
• Badges that did not come with the car when it was made
• Windows with tint
• Roof racks
• LED headlight upgrade , etc

3. What happens if you don't declare modifications?

If you do not notify your insurance company of any changes and subsequently need to make a claim, your policy may be considered invalid. The insurance company may refuse to pay out or may offer you a lower claim amount.