How Does Bike Modification Impact Bike Insurance Premium?

What is Bike Modification?

Bike modification refers to any change made to the interiors or exteriors of a two-wheeler's body to upgrade its performance or enhance its appearance from its default factor settings. While these modifications make your bike look atheistically beautiful or enhances the performance, they also impact the associated bike insurance premium due to the change in risk profile.

Different Types of Bike Modifications and Its Impact on Premium

There are different types of bike modifications that can affect bike insurance premium. Check them out:

1. Performance Modifications

   Performance modification usually includes fuel-efficient systems or speed-enhancing mechanisms fitted on the two-wheelers. As we know, faster speed may lead to a higher risk of accidents. The insurers review performance modification as a cause of frequent claims. Well, it is entirely your decision whether you go for the modification. However, considering the risk factor, it will surely increase bike insurance premiums.

   Why It Increases Premium: Generally, faster bikes are considered riskier due to their higher accident potential. This raises the chances of claims, making insurers to charge a higher premium.

2. Visual Modifications

   Giving a brand new look or utterly changing the color of your prized passion comes under visual modifications. When aesthetic value rises, the value of your bike in the market increases, causing a proportional difference in the insurance premiums.

   Visual modifications include:

   • Custom paint jobs
   • Alloy wheels
   • Unique decals and graphics
   • Fancy LED lights

   Why It Increases Premium: While these modifications make your bike stand out, they also increase its market value, making it a more attractive target for theft. Insurers account for this increased risk by raising premiums.

3. Security Modifications

   Enhance your bike's security helps you save on premiums. With security modification, the chances of your bike being stolen are lesser. Security enhancements include:

   • Anti-theft alarms
   • GPS tracking systems
   • High-quality locks
   • Immobilizers

   Why It Decreases Premium: If you have installed an anti-theft device, you'll fall under the low-risk category, and the insurer will see you with no precautionary tools. The bike insurance company offers bike insurance at a discounted rate to encourage such a measure. Therefore, security modification helps you save on bike insurance premiums and always keep your two-wheeler safe.

4. Modifying for the Disabled

   Suppose a differently-abled person uses a bike, and necessary modification is done at their convenience. It includes modifications like:

   • Installing side wheels
   • Special hand controls
   • Foot-operated gears

   Will it Impact the Premium: The insurance provider will not ask for an extra premium in that case. Even an additional discount is offered. This is to encourage a disabled person to move freely without fear. To claim a discount, you should keep the details of the modification done in the vehicle and inform the insurer when buying or renewing the bike insurance policy.

5. External Fittings Modifications

   Specific external fittings lead to the rise of premiums. It includes modifications like:

   • Luggage carriers
   • Custom crash guards
   • High-rise handlebars

   Why it Increases the Premium: If you add an external part, you should inform the insurer while purchasing two-wheeler insurance policy. It can increase the insured declared value (IDV) of the bike, leading to a higher premium. These fittings increase the bike's replacement cost in case of damage or theft.

6. Premium-friendly or High-quality Modifications

   Well, some modifications have zero impact on your bike insurance premium. Modifications such as upgraded braking systems, crash bars, increases in engine capacity up to 5%, etc., will not increase the premium. In contrast, wheel, suspension, or tank pad modifications are even accepted by insurers, leading to a minimal increase in bike insurance premiums.

Things to Keep in Mind Before Modifying Your Bike

• Street Legality: The most significant aspect of modifying a two-wheeler is that it complies with the law of the land. You should ensure that you have all the required permission to make whatever changes you prefer and that the vehicle is street-legal after successfully carrying out the mod job.
• Inform Your Insurer: If you're planning a severe modification, don't hesitate to ask a different insurance company if there is any extra premium they will ask for. Some insurance providers may not charge anything for a modification, while others may ask. Be clear on your part.
• No Claims on Uninformed Modifications: Remember that even a single modification will amplify two-wheeler insurance premiums. If you do not inform your insurer about such modification, you'll welcome the risk of claim rejection, or the insurer may nullify the policy.
• Accidental Claims: In case of an accidental claim, if the insurer notices a recent modification that is not informed, it can straightforwardly reject your claim. So, be careful.
• Ensure You Have Mandatory Cover: Always ensure you have at least third-party bike insurance coverage, as it is mandatory in India. However, you must have a comprehensive bike insurance policy to cover all the damages or loss caused to your vehicle. Moreover, check all the inclusions and exclusions of a bike insurance policy before buying it.