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Modifications That Your Car Insurer Must Know

Know the impact of car modifications on insurance premiums. Inform insurers to avoid claim rejection. Learn about risk factors & cost implications.

  • 29 Mar 2018
  • 2 min read
  • 17 views

The modifications made to your car have a direct effect on the insurance premium

You must have thought of equipping your car with those flashy headlights, robust alloy wheels and sporty spoilers. The thought of bigger turbochargers could have tempted you to improve your car’s performance and speed. A modification can be a great way to personalize your car and improve its performance. But, here are some things that need to be taken into account.

Tell Your Insurer About The Modifications

If you are contemplating pushing up your car’s oomph factor, there are few obligations to consider when it comes to your car insurance. From engine upgrades to fresh paint and stickers, always inform your insurer about the modifications made to the car. If you fail to declare any alterations to the car, it could result in rejection of your insurance claim.

How Modifications Affect Insurance Premiums?

Insurance companies provide a cover from risk and damages to your car. When you modify a car, it may result in increased or decreased chances of risk to the car. Hence, the insurance premium on your car may also rise or fall depending upon the modifications.

For example, if you install a turbocharger to your naturally aspirated engine, it may increase the speed. Which means higher chances of risk or accident and hence an increase in the insurance premium. Whereas, installing safety devices like parking sensors may decrease the cost of premium as it reduces the risk of collision while reversing the car.

What Are The Possible Modifications That Car Insurers Must Know?

  • Engine modification: These modifications enhance power and speed, and hence increase the risk. Therefore, they can hike your car insurance premium.
  • Wheel modification: Replacement of your car wheels may enhance the look and wheel upgrade may upturn the car’s value.
  • Bodywork: Any modifications like bonnet bulges, bigger wings, extended spoilers, tinted windows or additional lights may increase the premium cost.
  • Brakes and suspension: It is a critical safety component of the car, and are assessed by the insurance company before calculating premium.
  • Car interior: Any changes to seat upholstery, steering wheels, pedals or sound systems may alter the premium depending on the quality.
  • Paintwork: Specialized body paint or any stripes or designs on the car may change its appearance and hence may increase its value.

Before getting any modification done to your vehicle, make sure to inform your insurer as it will enable them to evaluate the premium cost and ensure your claim is not rejected in the event of an accident.

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Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.  

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