Cars have a special place in the hearts of the majority of their buyers. It is their first car for some, while it is a dream to tick it off their bucket list for a few. Whichever category you belong to, adding a special touch to your car by way of modification is the way to express your love for it. These modifications can range from revamping the upholstery to making electronic upgrades. But some changes are not just on the inside but also the outside. They mean changing your vehicle’s color, adding body kits, or even performance enhancement like upgrading the engine spares for higher power figures.
Some of these changes do not go well with your insurer, and thus, you must reconsider making them. These modifications increase the premium and, at times, may result in a denial of coverage altogether. In January 2019, the Supreme Court of India reversed a judgment passed by the Kerala High Court that permitted such modifications. With that being done, alterations to your car can now negatively impact your premium. This article enlists those modifications that can affect the bonus when buying car insurance online or offline.
1. Alteration to the body
This is a widespread alteration considering it significantly enhances the aesthetic appeal of your car, making it look unique and personalized. But any alteration to its body can mean a change in the purpose of the vehicle, and this must be informed to the insurance company.
2. Performance changes to the engine
The subsequent modification that impacts the car insurance premium is performance upgrades. Changes to the engine are a way to improve the horsepower or torque of the machine. This can be achieved by fitting a larger capacity of the bore or even changing the dimension of the engine valves and other such modifications.
3. Changes to brakes and suspension systems
These changes improve the ride quality of your car and enhance safety levels. But as you fit your vehicle with a higher quality spare and more expensive component, the IDV increases, increasing the premiums. * Standard T&C Apply
4. Interior changes
Any changes to the livery or upholstery of your car can mean a higher amount of compensation required in the event of damage to your vehicle. Thus, modification to the interior of your vehicle can affect the premium of your car insurance too.
5. Paint
If changed, the car’s paint is another modification, which may result in a spike in your premium. These changes are discouraged since it requires getting it changed in your vehicle’s registration certificate.
6. Wheel and rims
Changes in the wheels and rims as provided by your manufacturer can impact your car’s fuel consumption. In addition, the edges need to give support to the chassis load bearing capacity at certain speeds. Thus, damages to these spares require a higher replacement cost, thereby pushing up the premium amount.
These are some of the modifications that impact car insurance renewal premiums. While you can choose from a comprehensive or third-party car insurance plan, it is the former in which the impact is seen since premiums for the later policy are defined by the regulator. Lastly, remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
