Purchasing one's dream car is nothing short of a triumph. A lot of research goes into it right from looking for the best deals for the favorite car, followed by the loan options available and lastly the insurance which is a must-have to drive on roads and a safeguard in case of any unforeseen circumstances like theft or accident.
It's human nature to mold everything to one�s liking, and a car is no exception, and the best way to give it a personal touch is through customization. It could be anything from the color of lights to change in upholstery. But what happens if there is a major modification involved? Let�s deep dive and understand this in detail.
What is a car modification?
Modification can be any minor change one makes to the factory model of the vehicle to make it look unique and stand out in a crowd. It can be improved to make it more efficient, stylish, or practical.
A few alterations can affect the amount paid for the car insurance policy. As a result, it is preferable to consider the potential expenses that a modification may entail. Vehicles that have been modified pose a greater risk than vehicles that have not been altered. The more features are installed in a car, the more susceptible it is to theft. Insurance protects from risk, and when people implement modifications to the initially delivered vehicle, the likelihood of risk grows, rendering insurers more apprehensive. For example, having a supercharger installed or going for a fuel system upgrade increases the car's speed, raising the risk of a mishap, and having rims or any other alluring alteration increases the likelihood of theft. Taking these factors into account, insurance companies assess all the odds, culminating in increased insurance premiums. On the other hand, installing parking sensors would lower premium prices by decreasing the probability of mishaps while reversing the vehicle.
Young drivers are also perceived to be the ones that customize their vehicles and are also believed to be dangerous behind the wheel.
Modifications that can alter the Car insurance
- Interior modifications
Interior upgrades like high-end audio systems and advanced front-to-rear air conditioning may impact the premium computation. Apart from that, the insurance price takes into account steering wheels and dashboards, which are also significant changes that should be notified to the insurance company. The quality of the materials utilized and their wear and tear contribute to how insurance premium is calculated accordingly.
- Bodywork/ Wheel change
An insurance company may raise the coverage premium if the policyholder installs a fresh spoiler, exhaust system, modifies the wheel, or makes any other change that alters the car's performance.
Changing a car's wheels can be aesthetically pleasing while upgrading the wheels can increase its worth.
This is usually done to improve the car's visual attractiveness and make it appear to have a better road presence or for practical reasons like increasing load-carrying capacity. Any alterations to the vehicle's body, for whatever reason, may impact its functionality and must be disclosed to the insurer.
- Brake Modifications
The brakes are the most critical portion of any vehicle's control, and any modifications to these vital components would need to be approved by the insurance company. If a newly upgraded braking system is installed or the car suspension is adjusted, the car's performance on the road will alter. These modifications must also be communicated to the insurance company. These changes might hamper the current safety levels of the car; hence insurers could be apprehensive and increase the premium cost further.
- Engine Modifications
Modifications to improve an engine's performance might enhance the chance of a mishap, which insurance providers interpret as an operational risk and command a higher premium as a result. Modifications that boost engine power and enhance acceleration speed invariably increase risk. This is because road accidents are more likely to occur at high speeds. Overtaking, speeding, and other risky driving behaviors are more common among reckless drivers. As a result, installing a supercharger or nitrous oxide in the car can raise insurance costs.
- Paint Work
One may believe that changing the paint of the car is the most innocuous modification possible. Still, the insurance provider must be informed of the change, especially if the paint job is out of the ordinary, such as racing designs or any other dazzling design that can drastically alter the car's aesthetic and make it distinctive. This is because such changes increase the risk of theft, which raises the premium.
As a result, users must notify the insurance company before any alterations are made to the vehicle. It will assist the insurance company in assessing the consequence and allowing customers to make an informed decision.
- Alterations for disabled users
Nowadays, cars are modified to make them suitable for disabled people who require alterations, both at the driver and the passenger's seat. Hand controls, Swivel seats, automatic transmission, pedal extensions, wheelchair accessibility, scooter lifts, assist bars, and power steering are some of the most typical adaptations to make a car more accessible to disabled people. These modifications must also be communicated to the insurer.
- Installation of Anti-theft devices approved by ARAI
The Automobile Research Association of India Pune approves the anti-theft equipment in vehicles and those vehicles that get approved by any other Automobile Associations for the anti-theft set up become eligible for a 2.5 percent discount of up to Rs.500 on the own-damage provision of premium.
For the remaining period of the policy, a pro-rata proportion of the premium discount computed as per tariff provision is granted for the mid-term deployment of an anti-theft mechanism authorized and verified as above in the vehicle insured.
Before any modifications are made to the vehicle, make sure to notify the insurance company ahead of time. This will aid them in calculating the premium based on its impact on the vehicle. When renewing the insurance policy, don't wait until the last minute.
Every insurance provider has a different perspective on the modifications made to the car.
If the insurance company is not informed in advance of any alteration or change to the car, it may invalidate the coverage. While the information may increase the total cost, if it is not revealed, it may be considered deceptive and cause complications when the claim is filed.