When you buy a brand new car, either you plan lots of trips to different locations in your travel list, or you are already planning to change certain parts of it. While the former need not worry about the insurance premium amount, the latter need to pay attention to it. These changes may be right from paint colour to installing performance upgrades. All such alterations have an impact on the insurance premium of your car.
So let us look at what is considered as a modification for car insurance.
Cosmetic or performance changes that enhance the look and feel,making it more appealing and efficient are considered as a modification.
These changes are generally made to the original condition as manufactured by the carmaker. Modifications also include the add-on features that are offered as optional by the dealers. The car buyers don’t realise that these are part of the modification and the insurance premiums increase for these modifications too. But some features that function in harmony with the car are market-approved and hence don’t increase the premium amount.
Knowing that the insurance premiums change for modifications, what is assessed by the insurance company for determining the car insurancepremium amount? The answer to that is, Insured Declared Value (IDV). The IDV corresponds to the market value of your vehicle and it is the amount that is paid out during theft or total loss of your vehicle. If any of the modifications cause an increase in your IDV then your premium is bound is increase consequently.
Let us look at a few changes that are accounted for as modification leading to an increase in premium amount.
Changes to the engine components often lead to change in the power figures. These changes are not tested by manufacturers and lead to disruption of the harmony of other parts of the vehicle.
Brakes, Suspension and Tyre Changes
Changes to your brakes will put the lives of the driver as well as around them at stake. Moreover, aftermarket suspension setups are known to influence the handling of the car. Changes in the tread of your tire will have an impact on engine performance. It will not only result in frequent repairs but also faster deterioration of the engine life. The next time you purchase a comprehensive or a third party car insurance online, remember these changes impact your premiums.
A few insurance companies consider a decal or sticker to be a modification. Make sure you check with your insurance company when you apply for one.
it is always advisable to inform your insurer while making any changes to your vehicle as this may also have an impact on your claim acceptance.
The next time you buy car insurance, remember the modifications have an impact on your premium, which you can evaluate using the car insurance calculator. So choose your modifications considerably &shop wisely when looking for car insurance.