Any slight change in the original model of your car that makes it distinct from other similar models is termed as a modification. They can range from changes in appearances like colour or changes resulting in enhanced performance of your car.
When you get any modification done to your car, it creates a direct impact on your insurance costs. This is because any modification done to the insured car increases its chances of risks and therefore, increases the vehicle insurance rates as well. For example, if you have made any attractive modifications to your car, the chances of theft will increase, thus, impacting your four-wheeler insurance rates.
Some basic car modifications that can impact your Digit car insurance cost include:
Modifications to the appearance or exterior modifications arise when you change the look of your car. For example, getting your car's paint colour changed or getting an eye-catchy design on your car. Other examples of exterior modifications include adding appealing lights and changes in the car's bodywork, such as bonnet, panels, tyres, etc.
Exterior modifications add an aesthetic value to your car, which makes it more prone to getting stolen, and thus, increases your insurance premium. Any such changes made to the insured car should be informed to the insurer.
Interior modifications refer to the changes done to the interiors of your car. These include changing the look of the dashboard, car seats, adding a music system, adding accessories like Bluetooth, dual horns, etc. All these modifications come under interior modifications and need to be informed to the insurance company as they may increase your premium.
Car owners also prefer to modify their cars to ensure better performance. These modifications can be done to a car's engine, air filter, exhaust system, etc. and have a direct impact on the performance of the car. For example, adding nitrous oxide to your car can increase the speed of your car. But since it can also increase the chances of accidents, it directly impacts your car insurance premium. Therefore, these changes should be informed to your insurance provider.
Brakes and suspensions are vital to a car's safety and any changes in these can impact your car's performance. For example, getting updated brakes can impact the performance of your four-wheeler. Therefore, any modification done to brakes or suspensions should be intimated to the insurance company at the earliest.
Go Digit General Insurance offers two basic types of four-wheeler insurance policies, namely Third-party Liability and Comprehensive insurance. The former one is a mandatory insurance cover as per the motor laws of India. However, a comprehensive policy is optional but recommended as it covers both own car damages and third-party liabilities in case of an accident. Therefore, any modifications done to a car will only affect the own damages premium part of the comprehensive insurance plan as only this policy covers damages to the policyholder’s car.
While issuing the car policy, your insurer will calculate the premium considering various factors affecting the cost of the vehicle. When you make any modifications to your car, it may increase the value of your car. Any increase in the car's value, performance or aesthetics will impact your motor insurance premium. Thus, you need to inform your insurer about such modifications so that they can ascertain the premium based on those changes.
Once you have informed the insurer, they will re-inspect the car, and make changes in the policy as per the modifications. A modification may lead to an increase in the premium of your Digit car insurance policy.
If you fail to inform your motor insurance company about the modifications and your car suffers damages due to a road accident, then the insurer can either reject your claim or make partial payment based on the parts originally covered in the policy.
Other than the modification impact on a Digit Car Insurance policy, some more factors affect the premium of your motor insurance policy. These are:
The type of coverage you are planning to purchase also impacts your motor insurance policy. A third-party liability policy that only covers third-party damages is comparatively affordable. On the other hand, a comprehensive insurance plan that provides extensive coverage to the insured car, as well as covers accidental third party liabilities, is usually costly.
If your car runs on diesel, your four-wheeler insurance premium may increase. Cars that run on diesel are expensive and so is their IDV. Thus, diesel cars will have a high premium than petrol or CNG car.
Another factor that affects Digit car insurance premium is the car owner's profession. If your profession requires daily use of the insured car, you may have to pay a higher premium. This is because a vehicle used regularly has more chances of meeting an accident as compared to a vehicle that is rarely used.
Before getting any modifications done to your car, make sure to inform your insurance company well in advance. This will allow them to re-inspect your car and calculate your premium accordingly. If you fail to do so, your claim may be rejected by the company, so make sure to declare it beforehand.
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