If you are fond of cars and spend ample time in your vehicle, you would’ve probably considered giving your vehicle a personal touch by customizing it according to your needs. Making modifications to your vehicle might help enhance its appearance and performance but on the other hand, it can impact the amount of insurance premium you pay annually. Therefore, it is best to think about the potential costs that you might have to bear when you modify your vehicle.
Most of the car insurance providers consider modified vehicles to have a higher accident risk compared to ordinary cars. Moreover, it has also been found that car customizations are usually done by young drivers, who are generally considered unsafe behind the wheels. All these factors, lead to an increased premium rate of car insurance. It is essential that you inform your insurance provider about all the modifications you make to your car. The car insurance provider will most likely add an endorsement to your insurance policy that would require you to pay an additional premium.
Any modification, be it minor or a major one, will have an impact on your car insurance. Below is a list of car modifications and how they might affect your car insurance premium rates.
Road accidents are commonly a result of overspeeding and over-taking. As a result, the modifications made to increase engine performance and speed are considered to increase the risk of an accident. Therefore, car insurance providers increase the premium cost in case you add supercharger or turbo to your vehicle’s engine.
Many young car owners make wheel modifications to their car in order to give it a fancy look. However, such a modification can upturn the premium rates. Therefore, it is recommended to inform the insurance provider about such modifications.
Breaks and suspension
The overall control of the vehicle lies in its breaks. Therefore, changing such critical parts need assessment by the insurance company. In case you are upgrading breaks and suspension of your car, the performance of your vehicle on the road will change. You must inform your car insurance provider about such amendments along with the details of the service provider.
In addition to the above-mentioned modifications, minor changes like applying car stickers, paintwork, altering the car interiors might also impact your existing car insurance.
According to The Motor Vehicles Act, 1988, it is compulsory for all the car owners to buy at least a Third-party Car Insurance Policy in India. Purchasing car insurance is vital as it covers your expenses in the event of vehicle damage or injuries to other drivers, passengers or pedestrians.
Nowadays, with the help of leading financial institutions, you can purchase your car insurance online in a hassle-free manner. However, before choosing your insurance provider, it is advisable that you should go through its terms and conditions carefully. This will help you avoid any inconvenience in the later stages. Lastly, you should always opt for a financial institution that provides a wide coverage at the most competitive premium rates.