Car enthusiasts frequently modify their vehicles to improve their appearance, comfort, or performance. These modifications may jeopardise the vehicle’s safety, which can impact the premium for auto insurance. Any modifications or additions to your vehicle, such as security or performance-altering accessories, must be disclosed to your auto insurance company. Your car insurance premium may increase or decrease depending on the changes made.
Changes That May Raise Car Insurance Premiums:
New Paint Job
Specialised paint jobs, like decorative decals or striking designs painted on your car, can raise the risk of theft and may affect the cost of your insurance.
Changing Automobile Interiors
Any interior changes to the car must be reported to your insurer. This includes altering the car’s seats, pedals, sound system, and steering wheel. The calibre of the products used also impacts the insurance premium.
To increase a car’s performance, people frequently modify the engine. The vehicle can accelerate faster and reach higher speeds thanks to these modifications. On the other hand, these modifications also increase the risk of collisions or even theft, raising the car’s overall risk profile. Consequently, any such engine modification, such as installing a turbocharger or a nitrous oxide unit, will raise the cost of the insurance premium.
Swapping Out The Engine
For factory-installed engines, the insurance company determines a standard auto insurance premium based on the make, model, brand, and year of manufacture. Therefore, replacing the original manufacturer’s engine with a non-standard one will affect the premium prices.
It is common practice today to replace stock car wheels with alloy wheels or even broader tires. The value of the car, the risk of theft, or both may increase with the installation of such tires. It frequently leads to higher insurance premium costs in either scenario.
Suspension And Brakes
The car’s overall risk profile and safety rating can change if your brakes and suspension system are upgraded or replaced. If your vehicle receives such modifications, notify your insurer so they can reevaluate your insurance premium.
Some Changes Can Lower The Cost Of Auto Insurance
Not all modifications result in higher car insurance rates. For example, the likelihood of theft or a break-in is decreased by installing a tracking system or an ARAI-approved anti-theft alarm system in your vehicle. Similar to how installing parking sensors makes it less likely to reverse into another car or a wall accidentally.
These changes reduce the risk for the insurer. By offering concessions on the Own Damage portion of the car insurance premium, the insurer is likely to promote such customisations. ## *
Car Insurance Benefits
It is crucial to inform your auto insurance company about any alterations/changes made to the vehicle. The claim could only be accepted if this is done. For any modifications to your car, use authorised service centres and approved parts. Make sure you carry out the Bajaj Allianz car insurance renewal process on time.
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
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