How Modification Affects The Premium Of A Car Insurance Policy?

Written by Udit Varshney

Updated On Oct 15, 20232 min read

Learn this this article how modification affects the premium of a car insurance policy.

How Modification Affects The Premium Of A Car Insurance Policy?
Conclusion

In light of these factors, the insurance agent will weigh all possibilities and, as a result, increase your car insurance premium substantially. Installing parking sensors, on the other hand, would lower your premium because it decreases the chance of crashing while reversing the vehicle.
How Modification Affects The Premium Of A Car Insurance Policy?

How Modification Affects The Premium Of A Car Insurance Policy?

Here are a few modifications that affect the premium of a car insurance policy:

Engine Modifications

Modifications to an engine's output will increase the risk of an accident, which insurance firms interpret as an increased liability and charge a higher premium as a result.

Brake Adjustments

If a newly updated braking system threatens the vehicle's protection, the cost of the premium will be increased.

Interior Features

If the car owner installed or removed interior components that have an impact on driving safety, the car insurance provider may raise the premium.

Addition of Cladding/Bodywork

An insurance provider can raise the policy premium if the policyholder installs a new spoiler, exhaust system, changes the wheel rim, or makes any other modification that alters the car's efficiency.

Anti-theft systems certified by ARAI

Installing ARAI-approved anti-theft equipment in a vehicle qualifies a policyholder for discounts on the policy's own-damage car insurance car insurance premium.

Paint Work

Since changing the car's body colour is a relatively innocuous change, insurance providers do not charge an additional fee for it.

Putting Stickers On

Applying stickers also has no effect on an insurance company's current liability and risk. As a consequence, such reforms have little effect on insurance premiums.

Installations of No-Risk Bearings

Installation of an air conditioner, a sound system, new seats, and other upgrades that do not increase the likelihood of an accident would not raise the insurance premium.

Conclusion

As a result, it is important that you notify your insurance company well in advance of any changes you make to your car. This will assist the insurance agent in assessing the effect and allowing you to make an informed decision. Also keep in mind that if you do not notify your insurance company in a timely manner, any modifications you make to your vehicle can jeopardise your policy.

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.

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.

Written by Udit Varshney

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Udit has built B2C segments across various industries and has had significant contributions to the insurance sector. Udit in his last stint helped set out the last mile vertical, which soon became the go-to logistics name for daily needs, In his free time, Udit likes to write and listen to poetry.