Your Car Insurer needs to be informed of any modifications to your vehicle!  | Insurance Chat

If you do not believe in thinking of your vehicle as just a utility, you’ve probably already made changes to make it look feel like yours. Like you, there are many others who customize their vehicle to add a personal touch. It can add new covers or new mats to your car seats. Even so, many people still avoid making bigger changes that they wish to. And the reason for this is their car insurance plan. Many people wonder if these changes in their car will affect their insurance plan.

However, there is still a question of 4 wheeler insurance coverage. Hence, every time you make a modification to your car, you are required to notify your insurance provider. This applies to certain significant modifications. Here is an overview of the policy on car modification and how they might affect your insurance plan. 

How do car modifications affect insurance premiums?

Car insurance premium is calculated based on various factors such as manufacture, model, specifications, mileage, market value, condition of the vehicle, accessories etc. When modifying any insured car, it changes the parameters of the premium calculation.

For example, a car has already covered 80,000 km on the road and has been sold. The car insurance premium calculations for such a car will be different from calculations for a new car with the same characteristics. This is especially true for major changes such as changes made to increase engine performance or increase mileage. A car equipped with a dual exhaust system to increase its lift also increases the risk of accidents. Therefore, its insurers increase its premium. Similarly, a car with a dual fuel supply system attracts a higher premium. On the other hand, cars with more safety features and advanced technical features that reduce the risk of accidents will have a lower premium. Failing to report changes to your car can create problems for you during an insurance claim. * Standard T&C Apply

Car modifications that need you to notify your insurance company

  • Body modification

This is often done for visual or practical reasons such as enhancing aesthetic appeal and making the car look better or increasing its load-bearing capacity. Physical changes made for any reason will probably alter the purpose and performance of the vehicle, so it should be reported to the insurance company. *

  • Engine changes

The engine is the heart of the vehicle. Any changes to it will have an impact on power and speed. Hence, it should be reported to the insurance company. *

  • Braking and suspension modifications 

Both of these are important features for car safety. They help you maintain control of the vehicle on the road. Changes to these systems must be reported to the insurance company. *

  • Tire modifications

Upgrading the tires makes your car look more beautiful. But it also can change the performance of the car. Moreover, it also increases the price of the car. Hence, it will result in a boost in the car insurance prices. * 

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.