How Do Car Modifications Affect Your Insurance?
Updated On Oct 18, 2023
Learn which modifications to your automobile have an impact on your car insurance rate and which do not.
Table of Contents
Modification refers to a change, and in the case of an automobile, it refers to making modifications to the vehicle. As previously said, alterations are not restricted to the appearance and feel of your vehicle. There might be a number of choices available. Changes may be made to anything from the design to the performance. Many automobile owners like to have their vehicles customized. Modifications are typically made to improve a car's visual appeal while also increasing its economy. But have you ever considered how alterations can affect the cost of your auto insurance policy? And if they do, how will they accomplish it? This page seeks to provide answers to all of your queries about automobile modifications and insurance.
What Effect Do Changes Have on Car Insurance?
Keep in mind that there are two types of vehicle insurance policies: third-party liability (which is required by law) and comprehensive car insurance (which is optional) (recommended). Modifications to these policies will only affect the Comprehensive policy. This is due to the fact that it covers your Own Damage or damage to your vehicle. When your insurer issues a Comprehensive Car Insurance Policy, it will provide different facts about the vehicle and then compute the policy's cost/premium. When you alter a vehicle, the value of the vehicle may increase. As a result, you must notify the insurance company of the changes. Consider the case when you forget to notify the insurance company of the changes. Your automobile is damaged, maybe as a result of a natural disaster. The insurer may either deny the claim or issue a partial payment depending on the sections of the policy that were initially covered. When you notify your insurer about modifications, they can re-inspect the vehicle, account for the alterations, and make adjustments to your customized auto insurance policy.
Types of Car Modifications
Here's a rundown of some of the most common forms of automotive modifications:
Changes to the Exterior
Changing the appearance of your automobile is one of the most common modifications. These are alterations to the outside. A paint job or aesthetically attractive graphics on the car's body, for example, are typical. After that, lights are added. You have incredible possibilities and may use your imagination to improve the car's appearance.
Alterations to the Interior
Aesthetic alterations to the interior of the automobile include changing the design of the dashboard and car seats. Interior alterations include installing a sound system, changing the air conditioner, and adding extras like Bluetooth, twin horns, and so on.
Modifications that have an Impact on Performance
People also choose to alter their vehicles in order to improve their performance. Changes to the car's engine, air filter, exhaust system, and other components have a direct influence on the vehicle's performance. Converting the fuel type is another big adjustment that may be made to an automobile. Installing a CNG kit in a gasoline vehicle, for example.
If you have a Comprehensive Automobile Insurance Policy, major alterations to your car will have a significant impact on your car insurance price. Aesthetic alterations to your automobile will not affect your insurance price if you have acquired a simple Third-party Liability Coverage, as this policy does not cover damages to your car. Also, keep in mind that any changes must be reported to your auto insurance carrier in order to avoid a claim denial. Simply remember that changes that do not raise the likelihood of an accident or the theft of a valued item will have no impact on your vehicle insurance policy.
Also read - Renewal Of Vehicle Insurance Online in 5 Steps
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.