How Does Bike Modification Impact Bike Insurance Premium?

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.

2. Visual Modifications

   Giving a brand new look or utterly changing the color of your prized passion comes under visual modifications. But with aesthetic value enhancement, the risk of theft increases simultaneously. This directly impacts bike insurance premium. When aesthetic value rises, the value of your bike in the market increases, causing a proportional difference in the insurance 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. 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 two wheeler 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. 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. Fittings like luggage carriers will increase the bike's value and premium rates. Hence, if you fit an external part, you should inform the insurer while purchasing two-wheeler insurance policy. The insurance company will adjust the value and calculate the premiums accordingly. This will help you decide whether a particular plan is affordable or should consider another.

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.

   You may also read Factors Affecting Bike Insurance Premium

Things to Keep in Mind!

• 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.
• 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.
• 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.
• 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.
• 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.

Final Words!

When there are so many aspects affecting bike insurance premium, once you give a thumb to a modification, dare to ignore its impact on the premium. Most importantly, inform the insurer without fail about a modification well ahead of its implementation. The insurer will assess the situation accordingly and suggest a premium depending on the risk associated. However, no hard-and-fast rule is set on the exact percentage of increase or decrease premiums. You can settle on the amount suggested by the insurer, find common ground, or mutually settle for the best option that suits both parties.